M/S Tata Capital Ltd vs Sonu Transport Company And Anr

Court
Delhi High Court

$~6
* IN THE HIGH COURT OF DELHI AT NEW DELHI
# CNR No. DLHC010374912026
+ ARB.P. 1410/2026
M/S TATA CAPITAL LTD .....Petitioner
Through: Mr. Sunil Sehrawat, Adv.
versus
SONU TRANSPORT COMPANY AND ANR .....Respondents
Through: None.
CORAM:
HON'BLE MR. JUSTICE OM PRAKASH SHUKLA
JUDGMENT(ORAL)

% 03.11.2026
1. The present petition has been filed under Section 11(5) and
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11(6) of the Arbitration and Conciliation Act, 1996 seeking
appointment of an Arbitrator.

2. On the last date of hearing, notice was issued to the
Respondents and the Respondents were asked to file reply to the
present petition. However, the same has not been filed.

3. On a perusal of the affidavit of service filed it appears that the
notice has been duly served on the Respondents.

4. Despite the opportunity so granted, none appears on behalf of
the Respondents. Respondents have also failed to file any reply to the
present petition.

5. In view thereof and considering that the Respondents have
chosen not to participate in the present proceedings, despite sufficient
service, this Court finds no impediment in proceeding to consider the

1
“Act” hereinafter
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appointment of a Sole Arbitrator.

6. The tracking details placed on record establishes that the
Respondents have been duly served. The proof of service as reflected
from the tracking details is as follows:-





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7. The loan cum hypothecation agreement contains an arbitration
Clause under 13, which is reproduced hereinbelow:

“13. Arbitration
If any dispute, difference or claim arises between any of the
Obligors and the Lender in connection with the Facility or as to
the interpretation, validity, implementation or effect of the Facility
Documents or as to the rights and liabilities of the parties under
these T&Cs or alleged breach of the Facility Documents or
anything done or omitted to be done pursuant to the Facility
Documents, the same shall be settled by arbitration by a sole
arbitration to be appointed as per the procedure below and to be
held at such place as agreed by the Parties in Serial No.13(a) of
Annexure 1 hereto of the Agreement. The Party invoking the
arbitration ("Claimant") shall address a notice to the other Party
("Respondent") suggesting the names of not more than three
arbitrators, all of whom shall be either retired judges of the
District Court, High Court or the Supreme Court or a lawyer
having minimum 10 years' rellevant experience. The Respondent
shall either:
(i) Confirm in writing acceptance of one amongst the proposed
names as the sole arbitrator to the Claimant within a period of ten
(10) days from the date of notice ("Notice Period"); or
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(ii) Convey objection, if any, in writing to the Claimant, against
the proposed names of the sole arbitrator within the said Notice
Period.
However, if the Claimant does not receive any response
from the Respondent within the said Notice Period, the Claimant
shall be entitled to nominate any one person from amongst the
proposed three names as the sole arbitrator and such arbitrator
shall be deemed to be appointed by both the Parties. In the event,
the Respondent conveys its objection as per (ii) above, then the
appointment of the sole arbitrator shall be referred to the Council
for National and International Commercial Arbitration (CNICA)
and the arbitrator shall be appointed by them from their panel of
arbitrators.

The arbitration shall be conducted under the provisions of the
Arbitration and Conciliation Act, 1996 together with its
amendments, any statutory modifications or re-enactment thereof
for the time being in force. The arbitration proceeding shall be
conducted in English language. The award of the arbitrator shall
be final and binding on all parties concerned. The cost of
arbitration shall be borne by the Obligor's.”

8. It is well settled that, while exercising jurisdiction under Section
11 of the Act, the scope of enquiry is confined to examining the prima
facie existence of an arbitration agreement.

9. In the present case, this Court is of the view that a valid and
binding agreement exists between the parties.

10. In the aforesaid circumstances, this Court finds no impediment
in appointing a Sole Arbitrator to adjudicate the disputes between the
parties.

11. Accordingly, Ms. Harshita Choubey, Advocate, (Mob.
No.9999776655) is appointed as a learned Sole Arbitrator to
adjudicate the disputes arisen between the parties. The learned Sole
Arbitrator shall enter upon the reference within two weeks from today.
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12. The learned Sole Arbitrator will proceed to the arbitration
proceedings subject to furnishing requisite disclosures as required
under Section 12(2) of the Act within two weeks of entering reference.

13. The arbitration shall be carried under the rules and aegis of
Delhi International Arbitration Centre (“DIAC”). The learned
Arbitrator shall be entitled to fees as per the Schedule of Fees
maintained by the DIAC.

14. It shall be open to the parties to raise all pleas, including
objection as to arbitrability and jurisdiction, before the learned Sole
Arbitrator who shall decide the same in accordance with law.

15. It is clarified that the observations made herein are only for the
purpose of deciding the present petition under Section 11 of the Act.
The learned Sole Arbitrator shall adjudicate the disputes
independently and on their own merits, uninfluenced by any
observations contained in the present order.

16. The Registry is directed to send a receipt of this order to Ms.
Harshita Choubey, learned Arbitrator through all permissible modes
including email.

17. Accordingly, the present petition is disposed of in the above
terms.


OM PRAKASH SHUKLA, J
NOVEMBER 3, 2026/at
Signature Not Verified
Signed By:GUNN
Signing Date:03.11.2026
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