Facts
Tata Capital Ltd. filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking resolution of disputes arising from a loan agreement with Pyar Mohd; the judgment records the agreement date as “21.20.2023”.
Source reference: p. 1Tata Capital alleged default in repayment and relied on Clause 13, which provided for arbitration of disputes under the facility documents.
Source reference: p. 1–2Service on the respondent was found sufficient, but he did not appear.
Source reference: p. 1The petitioner sought appointment of a sole arbitrator.
Source reference: p. 1–3Issues
1. Whether a valid arbitration agreement prima facie existed between the parties for purposes of the petition under Section 11.
Source reference: p. 22. Whether the Court should appoint a sole arbitrator to adjudicate the disputes.
Source reference: p. 2–3Law Applied
Under Section 11 of the Arbitration and Conciliation Act, 1996, the Court’s enquiry is confined to examining the prima facie existence of a valid arbitration agreement.
Source reference: p. 2Section 12(2) requires the appointed arbitrator to furnish the requisite disclosure.
Source reference: p. 3The judgment cites no precedents; it also directs that the arbitration proceed under the Act and the aegis of the Delhi International Arbitration Centre (DIAC).
Source reference: p. 3Reasoning
The Court considered Clause 13 of the loan agreement and found that, prima facie, it constituted a valid arbitration clause.
Source reference: p. 1–2Having found no impediment to appointment, the Court appointed a sole arbitrator, while leaving all pleas—including arbitrability and jurisdiction—for the arbitrator to decide independently.
Source reference: p. 2–3Holding
The Court allowed the petition by appointing Ms. Sarika Mehta, Advocate, as sole arbitrator, directing her to enter upon the reference within two weeks and furnish the disclosure required under Section 12(2) within two weeks of entering the reference.
The arbitration is to be conducted under DIAC’s rules and aegis, with fees as per its schedule; the petition was disposed of accordingly.
Source reference: p. 3–4Acts & Sections Cited
2 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Arbitration and Conciliation Act, 19962
Original Court PDF
M/S Tata Capital LtdvsPyar Mohd
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