Naaz Fashions Pvt Ltd vs Sahil Garg

Court
Delhi High Court

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* IN THE HIGH COURT OF DELHI AT NEW DELHI
%
Judgment pronounced on: 16.10.2026
# CNR No.DLHC010232182026
ARB.P. 924/2026
+
NAAZ FASHIONS PVT LTD .....Petitioner
Through: Mr. Paritosh Anil, Mr. Saurabh Guha,
Advs.
versus
SAHIL GARG .....Respondent
Through: Mr. Vijay K. Singh, Adv.
CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA
JUDGMENT


1. The present petition has been filed under Section 11 of the Arbitration

and Conciliation Act, 1996 (hereinafter ‘A&C Act’ ), seeking appointment of
a Sole Arbitrator to adjudicate the disputes between the parties.
2. The disputes between the parties have arisen on account of alleged
non-payment of the arrears of rent in context of a Lease deed dated
21.10.2022.
3. The factual matrix, set forth by the petitioner is that a Lease Deed

dated 21.10.2022, was executed between the parties, whereby, the
respondent was inducted as a lessee for a period of 11 months at a monthly
rent of Rs. 25,00,000/-.
4. Owing to renovation works at the concerned premises, the
commencement of the lease was mutually deferred to 01.10.2023, upon

ARB. P. 924/2026 Page 1 of 4




Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:48:52

which the respondent took physical possession of the property.
5. The respondent issued four cheques towards rental dues, which upon
presentation were dishonoured with the remarks “insufficient funds”. In an
attempt to amicably resolve the matter, the parties executed a Settlement
Deed and Addendum dated 05.05.2024, whereby it was agreed that a sum of
Rs. 1 Crore, out of the security deposit of Rs. 1.5 Crores, would be adjusted
towards the outstanding rental dues. The said addendum further
contemplated furnishing of five undated cheques by the respondent towards
rent for the remaining period of lease. The respondent, however, failed to
honour the said arrangement.
6. Subsequently, the balance of the security deposit was adjusted
towards arrears of rent. Towards the remaining arrears, the respondent
issued three cheques dated 18.04.2025 for Rs. 25,00,000/- each. The said
on 29.04.2025
cheques were dishonoured for insufficiency of funds.
7. The disputes having arisen, a notice invoking arbitration was issued
by the petitioner on 07.01.2026. The same however, elicited no response.
8. Hence the present petition.
9. The Arbitration Clause contained in the Lease deed dated 21.10.2022
is as under:


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Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:48:52

10. The existence of arbitration agreement is not disputed. The same
contemplates that arbitral proceedings shall be held in Delhi. In terms of the
law laid down in BGS SGS SOMA JV v. NHPC Ltd. (2020) 4 SCC 234,
Delhi is the designated seat of arbitration.
11. In the circumstances, in view of the judgment rendered by the
Supreme Court in Perkins Eastman Architects DPC v. HSCC (India) Ltd ,
(2020) 20 SCC 760, TRF Limited v. Energo Engineering Projects Ltd ,
(2017) 8 SCC 377, Bharat Broadband Network Limited v. United
Telecoms Limited ., 2019 SCC OnLine SC 547, SBI General Insurance Co.
Ltd. v. Krish Spinning , 2024 INSC 532, and Interplay between Arbitration
Agreements under the Arbitration & Conciliation Act, 1996 & the Indian
Stamp Act, 1899, In re, 2023 SCC OnLine SC 1666, it is incumbent upon
this Court to constitute an arbitral tribunal to adjudicate the disputes between
the parties.
12. Accordingly, Ms. Samridhi Vats, Advocate (Mob. No. +91
8929270522), is appointed as the Sole Arbitrator to adjudicate the disputes
between the parties.
13. The respondents shall be at liberty to raise preliminary objections as
regards arbitrability/jurisdiction, if any, which shall be decided by the
arbitrator, in accordance with law.
14. The learned Sole Arbitrator may proceed with the arbitration
proceedings subject to furnishing to the parties the requisite disclosure as
required under Section 12 of the A&C Act.

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Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:48:52

15. Let the arbitration take place under the aegis of and as per the rules of
the Delhi International Arbitration Centre (DIAC).
16. All rights and contentions of the parties in relation to the
claims/counter claims are left open, to be decided by the learned Sole
Arbitrator on merits, in accordance with law.
17. Needless to say, nothing in this order shall be construed as an
expression of opinion of this Court on the merits of the case.
18. The present petition stands disposed of in the above terms.


SACHIN DATTA, J
ss
OCTOBER 16, 2026/

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Signature Not Verified
Digitally Signed
By:ABHISHEK THAKUR
Signing Date:16.10.2026
19:48:52