A Section 11 Court’s inquiry is confined to the prima facie existence of an arbitration agreement.

Tata Capital Limited filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to resolve disputes arising under a Loan Agreement dated 22 March 2023. Clause 9 of the agreement provided for arbitration before a sole arbitrator

The petitioner issued a notice under Section 21 of the Act on 2 July 2026

The respondent was served with notice of the petition but did not appear; the Court proceeded ex parte

1. Whether the Court should appoint a sole arbitrator under Section 11(6) of the Act to adjudicate disputes arising under the Loan Agreement

2. Whether the respondent’s non-appearance despite service prevented the Court from proceeding with the petition

Section 11(6) of the Arbitration and Conciliation Act, 1996 empowers the Court to appoint an arbitrator where the applicable appointment process has not resulted in an appointment. At this stage, the Court’s enquiry is confined to determining the prima facie existence of an arbitration agreement, as stated in SBI General Insurance Co. Ltd. v. Krish Spinning, 2024 SCC OnLine SC 1754

The arbitration clause in the parties’ agreement provided for disputes to be resolved by arbitration under the Act

Section 12(2) of the Act requires the appointed arbitrator to furnish the requisite disclosure

The Court found that the respondent had been duly served but had chosen not to participate, and therefore proceeded ex parte

Applying the limited prima facie enquiry under Section 11, the Court observed that there was no dispute regarding the existence of a valid arbitration clause between the parties

It consequently found no impediment to appointing a sole arbitrator, leaving questions including arbitrability and jurisdiction open for determination by the arbitrator

The arbitrator was directed to enter upon the reference within three weeks and furnish the requisite disclosure under Section 12(2)

The arbitration is to be conducted under the rules and aegis of the Delhi International Arbitration Centre, with fees payable under its schedule

The parties may raise all pleas, including objections to arbitrability and jurisdiction, before the arbitrator