Facts
The Petitioner, Oriental Foundry Pvt. Ltd., entered into a contract (No. 2024/RS(l)/954/207/1940) with the Respondent, Union of India, on 01.08.2024
Source reference: p. 2Disputes arose regarding the contract, leading the Petitioner to serve a notice under Section 21 of the Arbitration and Conciliation Act on 05.01.2026
Source reference: p. 3The Petitioner approached the High Court seeking the appointment of a Sole Arbitrator under Section 11(6)
Source reference: p. 1-2The Petitioner also sought interim protection under Section 9 to stay the invocation of bank guarantees totaling approximately ₹14.4 Crore
Source reference: p. 8-9The Respondents expressed no objection to the reference of the dispute to arbitration
Source reference: p. 3Issues
Whether a Sole Arbitrator should be appointed under Section 11(6) of the Act given the arbitration clause and the nature of the dispute
Source reference: p. 2, para. 1Whether the Section 9 petition for interim relief should be adjudicated by the Court or referred to the Arbitral Tribunal under Section 17
Source reference: p. 8, para. 16Law Applied
The Court primarily applied Section 11(6) and Section 11(6-A) of the Arbitration and Conciliation Act, 1996, which confines judicial scrutiny to the prima facie existence of an arbitration agreement
Source reference: p. 2, 4It relied on the Supreme Court’s decision in *SBI General Insurance Co. Ltd. v. Krish Spinning* (2024), which established that the Referral Court must not conduct a "laborious enquiry" into contested facts like "accord and satisfaction," as these fall within the domain of the Arbitral Tribunal under the principle of competence-competence
Source reference: p. 3-7The Court also referenced Section 17 of the Act regarding the power of an Arbitral Tribunal to grant interim measures
Source reference: p. 8Reasoning
The Court observed that the parties had a valid arbitration agreement
Source reference: p. 2Following the mandate in *Krish Spinning*, the Court limited its role to a facilitative one, ensuring the agreed dispute resolution mechanism was activated without delving into the merits of the ₹7 Crore claim
Source reference: p. 7Since the Respondents consented to arbitration, the Court found it appropriate to appoint an independent arbitrator despite the specific procedures mentioned in Clause 2905(b) (which involved panels of retired Railway Officers), thereby upholding arbitral autonomy
Source reference: p. 3, 7For the interim relief sought under Section 9, the Court determined that since an Arbitrator was being appointed, the application should be converted into a Section 17 application to be decided by the Tribunal, maintaining the status quo in the interim to protect the Petitioner from coercive steps regarding bank guarantees
Source reference: p. 8Holding
The Court allowed the petition and appointed Mr. Shashank Garg, Senior Advocate, as the Sole Arbitrator
It directed that the Section 9 petition be treated as an application under Section 17 to be decided by the Arbitrator
Source reference: p. 8, para. 16The interim order dated 12.12.2025 (staying coercive steps/BG invocation) was ordered to continue until the Arbitrator adjudicates the Section 17 application
Source reference: p. 8, para. 16The petitions were disposed of with a direction for the parties to share costs and fees equally per the Fourth Schedule
Source reference: p. 7, para. 10-11Original Court PDF
Oriental Foundry Private Limited v. Union of India & Anr. O.M.P.(I) (COMM.) 507/2025 & ARB.P. 354/2026
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