Section 11 inquiry is confined to the prima facie existence of an arbitration agreement.

Tata Capital Ltd. petitioned under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes arising under a facility agreement containing an arbitration clause.

The clause provided for arbitration of disputes connected with the facility and its documents. The petitioner stated that approximately Rs. 10.43 lakh was claimed.

Although service on the respondents was held sufficient, they did not appear; the Court recorded that the existence of the arbitration agreement was not disputed.

1. Whether the Court could appoint a sole arbitrator under Section 11 when service was sufficient and the existence of the arbitration agreement was undisputed.

2. Whether the disputes should be referred to arbitration, with the parties’ objections to arbitrability or jurisdiction left for the arbitrator to decide.

Under Section 11 of the Arbitration and Conciliation Act, 1996, the Court’s inquiry is confined to examining the prima facie existence of an arbitration agreement, as stated in SBI General Insurance Co. Ltd. v. Krish Spinning, 2024 SCC OnLine SC 1754.

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

Objections, including those concerning arbitrability and jurisdiction, may be raised before the arbitral tribunal for determination in accordance with law.

The Court found that the respondents had been sufficiently served but had not appeared, and that there was no dispute regarding the arbitration agreement.

Applying the limited prima facie inquiry under Section 11, it found no impediment to appointing an arbitrator.

It referred the disputes to arbitration while preserving the parties’ right to raise arbitrability and jurisdictional objections before the tribunal, and clarified that its observations would not affect the arbitrator’s independent consideration of the merits.

The arbitration was directed to proceed under the aegis of the Delhi International Arbitration Centre, with fees as per its Schedule of Fees.

The parties were permitted to raise all pleas, including arbitrability and jurisdiction, before the arbitrator.