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

The petitioner filed a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to resolve disputes arising from a Lease Deed dated 10 August 2021

The respondent proposed mediation, and the parties agreed that, if mediation failed, the disputes could be referred to arbitration. They did not dispute the existence of a valid arbitration agreement in Clause 24 of the Lease Deed

1. Whether the Court could appoint a sole arbitrator where a valid arbitration agreement existed and the parties agreed to arbitration if mediation failed.

2. Whether the parties should first be given an opportunity to resolve their disputes through mediation.

Section 11(6) of the Arbitration and Conciliation Act, 1996 empowers the Court to appoint an arbitrator, and the Court’s enquiry at this stage is confined to examining the prima facie existence of an arbitration agreement.

Clause 24 of the Lease Deed provided for disputes relating to the deed to be referred to a sole arbitrator.

The arbitrator must furnish the requisite disclosure under Section 12(2) of the Act.

The Court noted that the parties did not dispute the existence of a valid arbitration agreement and were ad idem on arbitration if mediation did not resolve the disputes.

Having found no impediment to appointing a sole arbitrator under the limited Section 11 enquiry, the Court referred the matter to the Delhi High Court Mediation and Conciliation Centre while also directing DIAC to appoint the arbitrator.

It left questions of arbitrability and jurisdiction open for determination by the arbitrator.

DIAC was directed to appoint a sole arbitrator within one week; the arbitrator was to enter upon the reference within three weeks of appointment, proceed under DIAC’s rules and fee schedule, and make the required disclosure under Section 12(2).

The parties were permitted to raise all pleas, including objections to arbitrability and jurisdiction, before the arbitrator, who was to decide the disputes independently on their merits.