1. This Arbitration Application is filed under Section 11 of the
Arbitration and Conciliation Act, 1996 ("the Act") seeking
appointment of an Arbitrator in relation to the disputes that have
arisen under the Card Holder Agreement read with the Most
Important Terms and Conditions ("Agreement") which contains the
terms and conditions for availing the credit card facility of the
Applicant-Bank. The arbitration clause is at Clause 32.2 at page
no.67 of the paper-book and the same reads as under:-
"32.2 Any dispute, difference and/ or claims arising out of in
connection with or in relation to this Agreement, shall be
settled by arbitration in accordance with the provisions of
the Arbitration and Conciliation Act, 1996 and any
subsequent statutory amendment, if any, to the Act, by a
sole arbitrator to be appointed by the Bank. Any
arbitration award/direction passed shall be final and
binding on the Parties. The language of the Arbitration
shall be English and the venue of such arbitration shall be
at Mumbai."
29-ARBAP(L)-9126-2026.doc Dixit
2. It is the Applicant-Bank's case that the credit card facility
was granted to the Respondent through an on-line application. The
Respondent has defaulted in repaying the credit card dues. The
copies of the credit card statements are annexed to this Application.
The Applicant has also annexed a Loan Recall Notice dated 20 th
February 2025 under Section 21 of the Act whereby the said
Agreement was terminated and the Respondent was called upon to
make payment of the outstanding amounts along with interest and
other charges.
3. The Applicant-Bank had invoked arbitration on an earlier
occasion by approaching SETLEN Arbitration and Dispute
Resolution Forum ("SADRF") and by its letter dated 17th March
2025 requested SADRF to appoint a sole Arbitrator for adjudication
of disputes arising under the said Agreement. SADRF issued an
intimation letter dated 21st March 2025 to both the parties proposing
a panel of arbitrators and calling upon the parties to nominate a sole
Arbitrator. As both the parties failed to agree upon the arbitrator,
SADRF proposed the name of an Arbitrator in terms of the said
intimation. A Claim Petition and a Section 17 Application was filed
by the Applicant-Bank. This was objected to by the Respondent
inter alia on the ground that the Arbitrator could not have been
unilaterally appointed.
4. Ms. Bijal Gogri, the learned Advocate for the Applicant-Bank
tenders an affidavit-of-service dated 24th March 2026 which has
been e-filed in this Court on the same day. The said affidavit
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records that the present Application is served on the Respondent. A
physical copy of the said affidavit is taken on record and marked
"X" for identification. Despite service, no appears for the
Respondent.
5. I have perused the record and find that the existence of the
arbitration agreement is not in dispute. The arbitration agreement is
at Clause 32.2 at page 67 of the paper-book. The arbitration has
been validly invoked by the Applicant-Bank by the notice dated 20 th
February 2025 read with its invocation before the SADRF. It is
settled law as held by the Hon'ble Supreme Court in Interplay
between Arbitration Agreements under Arbitration and Conciliation
Act, 1996 and Stamp Act, 1899, in Re (2024) 6 SCC 1 and followed
in subsequent judgment in the case of SBI General Insurance
Company Vs. Krish Spinning, (2025) 3 SCC (Civ) 567 that the
Section 11 Court ought not to venture beyond the existence of a
validly existing arbitration agreement.
6. Being satisfied that an arbitration agreement is in existence
and that it has been duly invoked, I refer all disputes and
differences between the parties under the said Agreement to
arbitration by a sole Arbitrator. In these circumstances, Arbitration
Application (Lodging) No.9126 of 2026 is disposed of in the
following terms :-
[A]. Ms. Yogita Deshmukh, learned Advocate of this
Court is hereby appointed as the sole Arbitrator to
adjudicate upon the disputes and differences
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between the parties arising out of and in connection
with the said Agreement referred to above. The
contact details of Ms. Yogita Deshmukh, the sole
Arbitrator, are "Office Address : Office No.103, "A"
Wing, Gagangiri Krupa Building, Sahyadri Nagar,
Kandivali (W), Mumbai-400067; Mob.
No.9702044133, E-mail : yogitadeshmukhoffice
@gmail.com".
[B]. A copy of this order will be communicated to the
learned sole Arbitrator by the advocate for the
Applicant within a period of one week from the date
on which this order is uploaded on the website of
this Court. The Applicant shall provide the contact
and communication particulars of the parties to the
Arbitral Tribunal along with a copy of this order;
[C]. The learned sole Arbitrator is requested to forward
the statutory Statement of Disclosure under Section
11(8) read with Section 12(1) of the Act to the
Advocate for the Applicant so as to enable them to
file the same in the Registry of this Court. The
Registry of this Court shall retain the said Statement
on the file of this Arbitration Application and a copy
of the same shall be furnished by the Advocate for
the Applicant to the Respondent;
[D]. The parties shall appear before the learned sole
Arbitrator on such date and at such place as
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indicated to obtain appropriate directions with
regard to conduct of the arbitration including fixing
schedule for pleadings, examination of witnesses, if
any, schedule of hearings etc. At such meeting, the
parties shall provide a valid and functional e-mail
address along with mobile and landline numbers of
the respective advocates of the parties to the Arbitral
Tribunal. Communications to such e-mail addresses
shall constitute valid service of correspondence in
connection with the arbitration;
[E]. The fees of the learned sole Arbitrator shall be as per
the Fourth Schedule of the Act read with the
Bombay High Court (Fee Payable to Arbitrators)
Rules, 2018.
[F]. All issues, claims and counterclaims are kept open to
be agitated before the Tribunal.
[G]. The arbitration shall be held at Mumbai.
[ GAUTAM A. ANKHAD, J. ]
Digitally
signed by
ABHAY Date:
ABHAY DIXIT 29-ARBAP(L)-9126-2026.doc Dixit
DIXIT 2026.04.10
17:25:35
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