A valid arbitration clause and invocation warrant appointment of a sole arbitrator under Section 11.

The petitioner appointed the respondent as an authorised dealer under a Dealership Agreement dated 18 April 2016, which contained an arbitration clause providing for a sole arbitrator appointed by VST and Bengaluru as the seat of arbitration.

After supplies were made on credit, the petitioner claimed that, following credit for returned tractors, ₹72,58,583 remained outstanding.

The petitioner invoked arbitration by notice dated 24 October 2025 under Section 21 of the Arbitration and Conciliation Act, 1996; the respondent did not respond.

The respondent was served with notice of the petition but did not appear.

1. Whether the arbitration clause in the Dealership Agreement and the petitioner’s invocation of it warranted appointment of a sole arbitrator under Section 11(5) of the Act.

2. Whether the respondent’s non-response to the invocation notice and non-appearance affected the appointment of an arbitrator.

Section 11(5) of the Arbitration and Conciliation Act, 1996 provides the basis for seeking appointment of an arbitrator where the parties’ agreed appointment procedure has not resulted in an appointment.

Section 21 concerns commencement of arbitral proceedings upon receipt of a request to refer the dispute to arbitration.

Clause 15(k) of the Dealership Agreement provided for disputes arising out of or connected with the agreement to be referred to arbitration, with one arbitrator appointed by VST and Bengaluru as the seat.

The Court found that the Dealership Agreement contained an arbitration clause covering the parties’ disputes and that the petitioner had invoked that clause by issuing a notice under Section 21.

Given the existence of the clause and the invocation of arbitration, the Court held that a sole arbitrator should be appointed.

The respondent’s failure to respond to the notice or appear before the Court did not prevent the Court from making that appointment.

The parties’ claims and contentions were left open; the Registry was directed to communicate the order and return original documents after making copies, and the parties were directed to appear before the Centre’s Director on 3 November 2026 at 11:30 a.m.