A valid arbitration clause and Section 21 notice warrant appointment of a sole arbitrator.

The petitioner, a footwear supplier, relied on a Supply Agreement dated 27 February 2019 with the respondent, which contained an arbitration clause providing for arbitration in Bengaluru. The petitioner alleged that disputes arose over purchase orders, marketing support, debit notes and unpaid amounts, and claimed principal and statutory interest

After the respondent did not respond to the petitioner’s Section 21 notice dated 1 April 2026, the petitioner filed this petition under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator. The respondent was served with notice of the petition but did not appear

Whether the parties’ Supply Agreement contained an arbitration clause covering their disputes

Whether, following the petitioner’s invocation of the clause and the respondent’s failure to respond, a sole arbitrator should be appointed under Section 11(5) of the Act

Section 11(5) of the Arbitration and Conciliation Act, 1996 provides the basis for seeking appointment of an arbitrator where the agreed appointment process is not completed.

Section 21 concerns commencement of arbitral proceedings upon receipt of a request to refer the dispute to arbitration. Under Clause 18 of the Supply Agreement, the parties were to attempt an amicable settlement and, if unsuccessful within 30 days, refer the dispute to an arbitrator mutually appointed by them; the arbitration was to be conducted in Bengaluru under the Act

The Court found that Clause 18 provided for arbitration of disputes connected with the Supply Agreement and that the petitioner had invoked the clause by serving a Section 21 notice.

The respondent neither responded to that notice nor appeared despite service in the petition. On those circumstances, the Court concluded that appointment of a sole arbitrator was required to adjudicate the parties’ disputes

The parties’ claims and contentions were left open, and the parties were directed to appear before the Centre’s Director on 30 October 2026 at 11:30 a.m.