Facts
The Petitioner, Ramanand Mahto, filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of a Sole Arbitrator
Source reference: para. 1The dispute arose from a Work Order dated 02.01.2021, which contained an arbitration clause (Clause 19) providing for dispute resolution in Delhi/New Delhi
Source reference: para. 2The Petitioner invoked the arbitration clause through a legal notice under Section 21 of the Act dated 05.12.2024
Source reference: para. 3The claims are valued at approximately Rs. 15 lakhs
Source reference: para. 6During the hearing, counsel for both parties reached a consensus (ad idem) to refer the matter to a Sole Arbitrator
Source reference: para. 7Issues
Whether the court’s jurisdiction under Section 11(6) of the Act is limited to a prima facie examination of the existence of the arbitration agreement
Source reference: para. 4-5Law Applied
Section 11(6) of the Arbitration and Conciliation Act, 1996, regarding the judicial appointment of arbitrators
Source reference: para. 1Supreme Court’s decision in SBI General Insurance Co. Ltd. v. Krish Spinning (2024) 12 SCC 1, which integrated the principles from the seven-judge Bench in Interplay Between Arbitration Agreements under Arbitration Act, 1996 & Stamp Act, 1899, In re (2024) 6 SCC 1
Source reference: para. 4The referral court must confine its scrutiny to the "prima facie existence" of the arbitration agreement and leave all other contested issues—including "accord and satisfaction," non-arbitrability, or frivolity—to the Arbitral Tribunal under the doctrine of competence-competence
Source reference: para. 4, 113-119Reasoning
The court reasoned that its role under Section 11 is facilitative and procedural, intended to overcome deadlocks in the appointment process
Source reference: para. 4, 110By applying the standards set in Krish Spinning, the court noted that it must not conduct a "contested or laborious enquiry," as such depth is reserved for the Arbitral Tribunal under Section 16
Source reference: para. 4, 114The court emphasized that even tests like the "eye of the needle" are now deprecated in favor of arbitral autonomy and minimal judicial interference
Source reference: para. 4, 121In this instance, since the arbitration agreement in the Work Order was undisputed and both parties consented to the appointment during the proceedings, the court determined that the statutory requirements for referral were satisfied
Source reference: para. 7-8Holding
The court allowed the petition and appointed Ms. Chandrika Gupta, Advocate, as the Sole Arbitrator
The court directed the Arbitrator to file the mandatory disclosure under Section 12(2) within one week
Source reference: para. 9It ordered that the parties share arbitral costs and fees equally
Source reference: para. 10The court held that all rights and contentions regarding the merits of the claims/counter-claims remain open for adjudication by the Arbitrator, and the present order does not constitute an opinion on the merits of the dispute
Source reference: para. 12-13Original Court PDF
Ramanand MahtovsAshwath Quippo Infra Projects Pvt Ltd
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