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M/S Pouring Pounds Pvt Ltd vs Shoogloo Network Pvt Ltd (Formerly Omg ...
2026 Latest Caselaw 351 Del

Citation : 2026 Latest Caselaw 351 Del
Judgement Date : 28 January, 2026

[Cites 21, Cited by 0]

Delhi High Court

M/S Pouring Pounds Pvt Ltd vs Shoogloo Network Pvt Ltd (Formerly Omg ... on 28 January, 2026

                          $~8
                          *         IN THE HIGH COURT OF DELHI AT NEW DELHI
                                                                             Date of decision: 28.01.2026

                          +         ARB.P. 1885/2025
                                    M/S POURING POUNDS PVT LTD                                  .....Petitioner
                                                          Through:       Mr. Raghav Wadhwa, Mr.
                                                                         Amitoj Chadha and Ms. Jahnvi
                                                                         Ghai, Advocates.
                                                          versus

                                    SHOOGLOO NETWORK PVT LTD (FORMERLY OMG
                                    NETWORK PVT LTD)              .....Respondent
                                                          Through:       Mr. Suhail Malik and Mr. Aqib
                                                                         Zaman, Advocates.

                                    CORAM:
                                    HON'BLE MR. JUSTICE HARISH VAIDYANATHAN
                                    SHANKAR

                          %                               JUDGEMENT (ORAL)
                          1.        The present petition has been filed under Section 11 of the
                          Arbitration and Conciliation Act, 19961, seeking the appointment of
                          a Sole Arbitrator to adjudicate the disputes between the parties in
                          terms of Clause 13 of the Marketing Agreement dated 14.12.20212.
                          2.        The said Agreement contains an Arbitration Clause, being
                          Clause 13, which reads as under:
                                    "13. ARBITRATION:
                                     13.1 The Parties shall endeavour to amicably settle and mutually
                                    resolve any dispute arising out of or in relation to this Agreement.
                                    13.2 In the event Parties are unable to resolve the dispute or
                                    difference amicably within 30 (Thirty) days of receipt of written
                                    notice from the other Party about existence of such dispute, either

                          1
                              The Act
                          2
                              Agreement
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                                  Party may refer such dispute or difference to arbitration to be
                                 conducted under the aegis of a sole arbitrator jointly appointed by
                                 the Parties. In case the Parties fail to appoint an arbitrator, within
                                 30 (Thirty) days from the submission of dispute for settlement
                                 through arbitration, the arbitrator shall be appointed in accordance
                                 with the provisions of the Arbitration and Conciliation Act, 1996.
                                 The seat and venue of arbitration shall be New Delhi and the
                                 arbitration shall be conducted in the English language.
                                 13.3 The arbitration shall be conducted in accordance with the
                                 Arbitration and Conciliation Act, 1996 and the rules made
                                 thereunder. The Parties agree that they shall bear their respective
                                 costs incurred towards the arbitration.
                                 13.4 The decision of the arbitrator shall be final, binding and non
                                 appealable except in the event of manifest error, In those instances
                                 where the dispute or difference referred to arbitration relates to or
                                 involves any matter or thing in respect of which the decision,
                                 opinion or determination is final and binding on Parties in terms of
                                 the Agreement, such decision, opinion and/or determination as the
                                 case may be, shall be final, binding, and not subject to further
                                 appeal.
                                 13.5 Notwithstanding anything contained in this Agreement, both
                                 Parties acknowledge and agree that the covenants and obligations
                                 with respect to the matters covered by this Agreement and set forth
                                 herein relate to special, unique and extraordinary matters, and that
                                 a violation of any of the terms of such covenants and obligations
                                 will cause irreparable loss and injury to the aggrieved Party,
                                 Therefore, notwithstanding the provisions of this Agreement, either
                                 Party shall be entitled to approach any appropriate forums for
                                 obtaining an injunction, restraining order or such other equitable
                                 relief as a court of competent jurisdiction may deem necessary or
                                 appropriate.
                                 13.6 - This clause 13 shall survive termination of the Agreement."

                          3.     The material on record indicates that the Petitioner herein
                          invoked arbitration in terms of Section 21 of the Act vide legal notice
                          dated 19.07.2025.
                          4.     This Court is cognizant of the scope of examination and
                          interference at the stage of a Petition under Section 11(6) of the Act.
                          The law with respect to the scope and standard of judicial scrutiny
                          under Section 11(6) of the Act has been fairly well settled. A
                          Coordinate bench of this Court, in Pradhaan Air Express Pvt Ltd v.


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                           Air Works India Engineering Pvt Ltd3, has extensively dealt with the
                          scope of interference at the stage of Section 11. The Court, in the said
                          judgment, held as under:-
                                    9. The law with respect to the scope and standard of judicial
                                    scrutiny under Section 11(6) of the 1996 Act has been fairly well
                                    settled. The Supreme Court in the case of SBI General Insurance
                                    Co. Ltd. v. Krish Spinning, while considering all earlier
                                    pronouncements including the Constitutional Bench decision of
                                    seven judges in the case of Interplay between Arbitration
                                    Agreements under the Arbitration & Conciliation Act, 1996 &
                                    the Indian Stamp Act, 1899, In re has held that scope of inquiry at
                                    the stage of appointment of an Arbitrator is limited to the extent
                                    of prima facie existence of the arbitration agreement and nothing
                                    else.
                                    10. It has unequivocally been held in paragraph no. 114 in the case
                                    of SBI General Insurance Co. Ltd. that observations made
                                    in Vidya Drolia v. Durga Trading Corpn., and adopted in NTPC
                                    Ltd. v. SPML Infra Ltd., that the jurisdiction of the referral court
                                    when dealing with the issue of "accord and satisfaction" under
                                    Section 11 extends to weeding out ex-facienon-arbitrable and
                                    frivolous disputes would not apply after the decision of Re :
                                    Interplay. The abovenoted paragraph no. 114 in the case of SBI
                                    General Insurance Co. Ltd. reads as under:--
                                        "114. In view of the observations made by this Court in In
                                        Re : Interplay (supra), it is clear that the scope of enquiry
                                        at the stage of appointment of arbitrator is limited to the
                                        scrutiny of prima facie existence of the arbitration
                                        agreement, and nothing else. For this reason, we find it
                                        difficult to hold that the observations made in Vidya
                                        Drolia (supra) and adopted in NTPC v. SPML (supra) that
                                        the jurisdiction of the referral court when dealing with the
                                        issue of "accord and satisfaction" under Section 11
                                        extends to weeding out ex-facie non-arbitrable and
                                        frivolous disputes would continue to apply despite the
                                        subsequent decision in In Re : Interplay (supra)."
                                    11. Ex-facie frivolity and dishonesty are the issues, which have
                                    been held to be within the scope of the Arbitral Tribunal which is
                                    equally capable of deciding upon the appreciation of evidence
                                    adduced by the parties. While considering the aforesaid
                                    pronouncements of the Supreme Court, the Supreme Court in the
                                    case of Goqii Technologies (P) Ltd. v. Sokrati Technologies (P)
                                    Ltd., however, has held that the referral Courts under Section 11

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                              2025 SCC OnLine Del 3022
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                                  must not be misused by one party in order to force other parties to
                                 the arbitration agreement to participate in a time-consuming and
                                 costly arbitration process. Few instances have been delineated such
                                 as, the adjudication of a non-existent and malafide claim through
                                 arbitration. The Court, however, in order to balance the limited
                                 scope of judicial interference of the referral Court with the interest
                                 of the parties who might be constrained to participate in the
                                 arbitration proceedings, has held that the Arbitral Tribunal
                                 eventually may direct that the costs of the arbitration shall be borne
                                 by the party which the Arbitral Tribunal finds to have abused the
                                 process of law and caused unnecessary harassment to the other
                                 parties to the arbitration.
                                 12. It is thus seen that the Supreme Court has deferred the
                                 adjudication of aspects relating to frivolous, non-existent
                                 and malafide claims from the referral stage till the arbitration
                                 proceedings eventually come to an end. The relevant extracts
                                 of Goqii Technologies (P) Ltd. reads as under:--
                                      "20. As observed in Krish Spg. [SBI General Insurance
                                      Co. Ltd. v. Krish Spg., (2024) 12 SCC 1 : 2024 INSC
                                      532], frivolity in litigation too is an aspect which the
                                      referral court should not decide at the stage of Section 11
                                      as the arbitrator is equally, if not more, competent to
                                      adjudicate the same.
                                      21. Before we conclude, we must clarify that the limited
                                      jurisdiction of the referral courts under Section 11 must
                                      not be misused by parties in order to force other parties to
                                      the arbitration agreement to participate in a time
                                      consuming and costly arbitration process. This is possible
                                      in instances, including but not limited to, where the
                                      claimant canvasses the adjudication of non-existent and
                                      mala fide claims through arbitration.
                                      22. With a view to balance the limited scope of judicial
                                      interference of the referral courts with the interests of the
                                      parties who might be constrained to participate in the
                                      arbitration proceedings, the Arbitral Tribunal may direct
                                      that the costs of the arbitration shall be borne by the party
                                      which the Tribunal ultimately finds to have abused the
                                      process of law and caused unnecessary harassment to the
                                      other party to the arbitration. Having said that, it is
                                      clarified that the aforesaid is not to be construed as a
                                      determination of the merits of the matter before us, which
                                      the Arbitral Tribunal will rightfully be equipped to
                                      determine."
                                 13. In view of the aforesaid, the scope at the stage of Section 11
                                 proceedings is akin to the eye of the needle test and is limited to

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                                  the extent of finding a prima facie existence of the arbitration
                                 agreement and nothing beyond it. The jurisdictional contours of the
                                 referral Court, as meticulously delineated under the 1996 Act and
                                 further crystallised through a consistent line of authoritative
                                 pronouncements by the Supreme Court, are unequivocally confined
                                 to a prima facie examination of the existence of an arbitration
                                 agreement. These boundaries are not merely procedural safeguards
                                 but fundamental to upholding the autonomy of the arbitral process.
                                 Any transgression beyond this limited judicial threshold would not
                                 only contravene the legislative intent enshrined in Section 8 and
                                 Section 11 of the 1996 Act but also risk undermining the sanctity
                                 and efficiency of arbitration as a preferred mode of dispute
                                 resolution. The referral Court must, therefore, exercise restraint and
                                 refrain from venturing into the merits of the dispute or adjudicating
                                 issues that fall squarely within the jurisdictional domain of the
                                 arbitral tribunal. It is thus seen that the scope of enquiry at the
                                 referral stage is conservative in nature. A similar view has also
                                 been expressed by the Supreme Court in the case of Ajay
                                 Madhusudan Patel v. Jyotrindra S. Patel".

                          5.     Mr. Suhail Malik, learned Counsel enters appearance on behalf
                          of the Respondent and raises objections to the appointment of an
                          Arbitrator on the following grounds:
                                     i. the Agreement does not bear the signature of both parties.
                                     ii. the Arbitration Clause, as agreed between the parties,
                                         provides that the Parties shall endeavour to amicably
                                         settle and mutually resolve any dispute arising out of or
                                         in relation to the said Agreement. Since the same has not
                                         been followed, the present Petition is premature.
                                     iii. De hors the fact that Clause 13.2 expressly states that the
                                         seat and venue for arbitration shall be New Delhi; since
                                         the cause of action has not arisen in New Delhi,
                                         therefore, this Court has no jurisdiction to pass any
                                         Orders qua the appointment of Sole Arbitrator in the
                                         present Petition.
                          6.     The dispute is stated to be for an amount of approximately
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                           Rs. 1.20 Crores.

                          ANALYSIS:
                          7.        This Court has heard the learned counsel for the parties and,
                          with their able assistance, gone through the documents annexed to the
                          present Petition.
                          8.        This Court is of the opinion that the objections as raised by the
                          Respondent, firstly, with respect to the submissions that the
                          Agreement itself is not signed, is of no consequence since it is not
                          disputed that the parties have entered into a settlement and have also
                          acted on the basis of the said Agreement.
                          9.        With respect to the second contention, as is apparent, Clause
                          13.1, being more in the nature of a clause that seeks to lay down that
                          the parties would endeavour to settle or mutually resolve its disputes,
                          has been interpreted by the various judgments of the Courts to be
                          directory and not mandatory in nature. The same finds mention in
                          Jhajharia Nirman Ltd. v. South Western Railways4, relevant paras of
                          which have been extracted hereinbelow:
                                    "19. In this regard, reference may be made to Oasis Projects Ltd. v.
                                    National Highway & Infrastructure Development Corporation
                                    Limited, (2023) 1 HCC (Del) 525, wherein the Court has observed
                                    as under:

                                        "12. The primary issue to be decided in the present
                                        petition is, therefore, as to whether it was mandatory for
                                        the petitioner to resort to the conciliation process by the
                                        Committee before invoking arbitration. Though Article
                                        26.2 clearly states that before resorting to arbitration, the
                                        parties agree to explore conciliation by the Committee, in
                                        my opinion, the same cannot be held to be mandatory in
                                        nature. It needs no emphasis that conciliation as a dispute
                                        resolution mechanism must be encouraged and should be
                                        one of the first endeavours of the parties when a dispute

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                                       arises between them. However, having said that,
                                      conciliation expresses a broad notion of a voluntary
                                      process, controlled by the parties and conducted with the
                                      assistance of a neutral third person or persons. It can be
                                      terminated by the parties at any time as per their free will.
                                      Therefore, while interpreting Article 26.2, the basic
                                      concept of conciliation would have to be kept in mind."

                                                                              [Emphasis supplied]

                                 20. In Kunwar Narayana v. Ozone Overseas Pvt. Ltd. 2021 : DHC
                                 : 496, the Court has made the following observations:

                                      "5. Ms. Pahwa, learned Counsel for the respondents
                                      submitted that her only objection, to the petition, was that
                                      the petitioner has not exhausted the avenue of amicable
                                      resolution, contemplated by Clause 12 of the Share
                                      Buyback Agreement. I am not inclined to agree with this
                                      submission. The recital of facts, as set out in the petition,
                                      indicate that efforts at trying to resolve the disputes,
                                      amicably were made, but did not succeed. Even otherwise,
                                      the Supreme Court in Demarara Distilleries Pvt. Ltd. v.
                                      Demerara Distilleries Ltd. and this Court, in its judgment
                                      in Ravindra Kumar Verma v. BPTP Ltd., opined that
                                      relegation of the parties to the avenue of amicable
                                      resolution, when the Court is moved under Section 11(6)
                                      of the 1996 Act, would be unjustified, where such
                                      relegation would merely be in the nature of an empty
                                      formality. The arbitration clause in the present case does
                                      not envisage any formal regimen or protocol for amicable
                                      resolution, such as issuance of a notice in that regard and
                                      completion of any stipulated time period thereafter, before
                                      which arbitral proceedings could be invoked. In the
                                      absence of any such stipulation, I am of the opinion,
                                      following the law laid down in Demarara Distilleries Pvt.
                                      Ltd. and Ravindra Kumar Verma v. BPTP Ltd. nothing
                                      worthwhile would be achieved, by relegating the parties to
                                      explore any avenue of amicable resolution. Besides, the
                                      appointment of an arbitrator by this Court would not act as
                                      an impediment in the parties resolving their disputes
                                      amicably, should it be possible at any point of time."

                                 21. This Court in Subhash Infraengineers (P) Ltd. v. NTPC Ltd.,
                                 2023 SCC OnLine Del 2177 has held as under:--

                                      "21. In this regard, it is relevant to note that in terms of
                                      Section 62(3) of the Act, it is open for a party to reject the
                                      invitation to conciliate. Further, in terms of Section 76 of
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                                          the Act, the conciliation proceedings can be terminated by
                                         a written declaration of a party and there is no legal bar in
                                         this regard. In the present case, Clause 7.2.5 of the GCC
                                         expressly provides that "parties are free to terminate
                                         Conciliation proceedings at any stage as provided under
                                         the Arbitration and Conciliation Act, 1996."
                                                                     ***
                                         28. In the present case, the clause/pre arbitral mechanism
                                         contemplates     mutual     consultation     followed   by
                                         conciliation. As noticed in Abhi Engg. and Oasis Projects,
                                         conciliation is a voluntary process and once a party has
                                         opted out of conciliation, it cannot be said that the said
                                         party cannot take recourse to dispute resolution through
                                         arbitration."

                          10.       With respect to the third objection raised, that although the
                          Agreement expressly stipulates New Delhi as the seat and venue of
                          arbitration, no part of the cause of action has arisen within the
                          territorial jurisdiction of this Court and, consequently, this Court lacks
                          the jurisdiction to pass any orders for the appointment of a Sole
                          Arbitrator.
                          11.       However, on this contention, this Court is of the view that once
                          the parties have mutually agreed upon a particular place as the seat
                          and venue of arbitration, they cannot raise an objection as to the
                          maintainability on the said ground. This position stands reflected in
                          the judgment of the Hon‟ble Supreme Court in BGS SGS SOMA JV
                          v. NHPC5 the relevant extract whereof is reproduced hereinbelow:
                                    "49. Take the consequence of the opposite conclusion, in the light
                                    of the facts of a given example, as follows. New Delhi is
                                    specifically designated to be the seat of the arbitration in the
                                    arbitration clause between the parties. Part of the cause of action,
                                    however, arises in several places, including where the contract is
                                    partially to be performed, let us say, in a remote part of
                                    Uttarakhand. If concurrent jurisdiction were to be the order of the
                                    day, despite the seat having been located and specifically chosen
                                    by      the    parties,   party     autonomy       would     suffer,

                          5
                              (2020) 4 SCC 234
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                                  which BALCO [BALCO v. Kaiser Aluminium Technical Services
                                 Inc., (2012) 9 SCC 552 : (2012) 4 SCC (Civ) 810] specifically
                                 states cannot be the case. Thus, if an application is made to a
                                 District Court in a remote corner of the Uttarakhand hills, which
                                 then becomes the court for the purposes of Section 42 of the
                                 Arbitration Act, 1996 where even Section 34 applications have
                                 then to be made, the result would be contrary to the stated intention
                                 of the parties -- as even though the parties have contemplated that
                                 a neutral place be chosen as the seat so that the courts of that place
                                 alone would have jurisdiction, yet, any one of five other courts in
                                 which a part of the cause of action arises, including courts in
                                 remote corners of the country, would also be clothed with
                                 jurisdiction. This obviously cannot be the case. If, therefore, the
                                 conflicting portion of the judgment of BALCO [BALCO v. Kaiser
                                 Aluminium Technical Services Inc., (2012) 9 SCC 552 : (2012) 4
                                 SCC (Civ) 810] in para 96 is kept aside for a moment, the very fact
                                 that parties have chosen a place to be the seat would necessarily
                                 carry with it the decision of both parties that the courts at the seat
                                 would exclusively have jurisdiction over the entire arbitral process.
                                 50. In fact, subsequent Division Benches of this Court have
                                 understood the law to be that once the seat of arbitration is chosen,
                                 it amounts to an exclusive jurisdiction clause, insofar as the courts
                                 at that seat are concerned. In Enercon (India) Ltd. v. Enercon
                                 GmbH [Enercon (India) Ltd. v. Enercon GmbH, (2014) 5 SCC 1
                                 : (2014) 3 SCC (Civ) 59] , this Court approved the dictum
                                 in Shashoua [Shashoua v. Sharma, 2009 EWHC 957 (Comm) :
                                 (2009) 2 Lloyd's Law Rep 376] as follows : (Enercon
                                 case [Enercon (India) Ltd. v. Enercon GmbH, (2014) 5 SCC 1 :
                                 (2014) 3 SCC (Civ) 59] , SCC p. 55, para 126)
                                      "126. Examining the fact situation in the case, the Court
                                      in Shashoua case [Shashoua v. Sharma, 2009 EWHC 957
                                      (Comm) : (2009) 2 Lloyd's Law Rep 376] observed as
                                      follows:
                                      „The basis for the court's grant of an anti-suit injunction of
                                      the kind sought depended upon the seat of the
                                      arbitration. An agreement as to the seat of an arbitration
                                      brought in the law of that country as the curial law and
                                      was analogous to an exclusive jurisdiction clause. Not
                                      only was there agreement to the curial law of the seat, but
                                      also to the courts of the seat having supervisory
                                      jurisdiction over the arbitration, so that, by agreeing to
                                      the seat, the parties agreed that any challenge to an
                                      interim or final award was to be made only in the courts of
                                      the place designated as the seat of the arbitration.
                                      Although, "venue" was not synonymous with "seat", in an
                                      arbitration clause which provided for arbitration to be
                                      conducted in accordance with the Rules of the ICC in

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                                       Paris (a supranational body of rules), a provision that
                                      "the venue of arbitration shall be London, United
                                      Kingdom" did amount to the designation of a juridical
                                      seat....‟
                                      In para 54, it is further observed as follows:
                                            „There was a little debate about the possibility
                                            of the issues relating to the alleged submission
                                            by the claimants to the jurisdiction of the High
                                            Court of Delhi being heard by that Court,
                                            because it was best fitted to determine such
                                            issues under the Indian law. Whilst I found
                                            this idea attractive initially, we are persuaded
                                            that it would be wrong in principle to allow
                                            this and that it would create undue practical
                                            problems in any event. On the basis of what I
                                            have already decided, England is the seat of
                                            the arbitration and since this carries with it
                                            something akin to an exclusive jurisdiction
                                            clause, as a matter of principle the foreign
                                            court should not decide matters which are for
                                            this Court to decide in the context of an anti-
                                            suit injunction.‟"
                                                                                  (emphasis in original)
                                 51. The Court in Enercon [Enercon (India) Ltd. v. Enercon GmbH,
                                 (2014) 5 SCC 1 : (2014) 3 SCC (Civ) 59] then concluded : (SCC p.
                                 60, para 138)
                                      "138. Once the seat of arbitration has been fixed in India,
                                      it would be in the nature of exclusive jurisdiction to
                                      exercise the supervisory powers over the arbitration."
                                                                              (emphasis in original)
                                 52. In Reliance Industries Ltd. [Reliance Industries Ltd. v. Union
                                 of India, (2014) 7 SCC 603 : (2014) 3 SCC (Civ) 737] , this Court
                                 held : (SCC pp. 627, 630-31, paras 45, 55-56)
                                      "45. In our opinion, it is too late in the day to contend that
                                      the seat of arbitration is not analogous to an exclusive
                                      jurisdiction clause. This view of ours will find support
                                      from numerous judgments of this Court. Once the parties
                                      had consciously agreed that the juridical seat of the
                                      arbitration would be London and that the arbitration
                                      agreement will be governed by the laws of England, it was
                                      no longer open to them to contend that the provisions of
                                      Part I of the Arbitration Act would also be applicable to
                                      the arbitration agreement. This Court in Videocon
                                      Industries Ltd. v. Union of India [Videocon Industries
                                      Ltd. v. Union of India, (2011) 6 SCC 161 : (2011) 3 SCC


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                                       (Civ) 257] has clearly held as follows : (SCC p. 178, para
                                      33)
                                      „33. In the present case also, the parties had agreed that
                                      notwithstanding Article 33.1, the arbitration agreement
                                      contained in Article 34 shall be governed by laws of
                                      England. This necessarily implies that the parties had
                                      agreed to exclude the provisions of Part I of the Act. As a
                                      corollary to the above conclusion, we hold that the Delhi
                                      High Court did not have the jurisdiction to entertain the
                                      petition filed by the respondents under Section 9 of the
                                      Act and the mere fact that the appellant had earlier filed
                                      similar petitions was not sufficient to clothe that High
                                      Court with the jurisdiction to entertain the petition filed by
                                      the respondents.‟
                                                                   ***
                                      55. The effect of choice of seat of arbitration was
                                      considered by the Court of Appeal in C v. D [C v. D, 2008
                                      Bus LR 843 : 2007 EWCA Civ 1282 (CA)] . This
                                      judgment has been specifically approved by this Court
                                      in Balco [BALCO v. Kaiser Aluminium Technical Services
                                      Inc., (2012) 9 SCC 552 : (2012) 4 SCC (Civ) 810] and
                                      reiterated     in Enercon       (India)      Ltd. v. Enercon
                                      Gmbh [Enercon (India) Ltd. v. Enercon GmbH, (2014) 5
                                      SCC 1 : (2014) 3 SCC (Civ) 59] . In C v. D [C v. D, 2008
                                      Bus LR 843 : 2007 EWCA Civ 1282 (CA)] , the Court of
                                      Appeal has observed : (C case [C v. D, 2008 Bus LR 843 :
                                      2007 EWCA Civ 1282 (CA)] , Bus LR p. 851, para 16)
                                      „Primary conclusion
                                      16. I shall deal with Mr Hirst's arguments in due course
                                      but, in my judgment, they fail to grapple with the central
                                      point at issue which is whether or not, by choosing
                                      London as the seat of the arbitration, the parties must be
                                      taken to have agreed that proceedings on the award should
                                      be only those permitted by English law. In my view they
                                      must be taken to have so agreed for the reasons given by
                                      the Judge. The whole purpose of the balance achieved by
                                      the Bermuda form (English arbitration but applying New
                                      York law to issues arising under the policy) is that judicial
                                      remedies in respect of the award should be those permitted
                                      by English law and only those so permitted. Mr Hirst
                                      could not say (and did not say) that English judicial
                                      remedies for lack of jurisdiction on procedural
                                      irregularities under Sections 67 and 68 of the 1996 Act
                                      were not permitted; he was reduced to saying that New
                                      York judicial remedies were also permitted. That,
                                      however, would be a recipe for litigation and (what is

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                                       worse) confusion which cannot have been intended by the
                                      parties. No doubt New York Law has its own judicial
                                      remedies for want of jurisdiction and serious irregularity
                                      but it could scarcely be supposed that a party aggrieved by
                                      one part of an award could proceed in one jurisdiction and
                                      a party aggrieved by another part of an award could
                                      proceed in another jurisdiction. Similarly, in the case of a
                                      single complaint about an award, it could not be supposed
                                      that the aggrieved party could complain in one jurisdiction
                                      and the satisfied party be entitled to ask the other
                                      jurisdiction to declare its satisfaction with the award.
                                      There would be a serious risk of parties rushing to get the
                                      first judgment or of conflicting decisions which the parties
                                      cannot have contemplated.‟
                                      56. The aforesaid observations in C v. D [C v. D, 2008
                                      Bus LR 843 : 2007 EWCA Civ 1282 (CA)] were
                                      subsequently followed by the High Court of Justice,
                                      Queen's Bench Division, Commercial Court (England)
                                      in Sulamérica Cia Nacional de Seguros SA v. Enesa
                                      Engelharia SA [Sulamérica Cia Nacional de Seguros
                                      SA v. Enesa Engelharia SA, (2013) 1 WLR 102 : 2012
                                      EWCA Civ 638 : 2012 WL 14764 (CA)] . In laying down
                                      the same proposition, the High Court noticed that the issue
                                      in that case depended upon the weight to be given to the
                                      provision in Condition 12 of the insurance policy that "the
                                      seat of the arbitration shall be London, England". It was
                                      observed that this necessarily carried with it the English
                                      Court's supervisory jurisdiction over the arbitration
                                      process. It was observed that:
                                      „this follows from the express terms of the Arbitration Act,
                                      1996 and, in particular, the provisions of Section 2 which
                                      provide that Part I of the Arbitration Act, 1996 applies
                                      where the seat of the arbitration is in England and Wales
                                      or Northern Ireland. This immediately establishes a strong
                                      connection between the arbitration agreement itself and
                                      the law of England. It is for this reason that recent
                                      authorities have laid stress upon the locations of the seat of
                                      the arbitration as an important factor in determining the
                                      proper law of the arbitration agreement.‟"
                                                                                 (emphasis in original)
                                 53. In Indus Mobile Distribution (P) Ltd. [Indus Mobile
                                 Distribution (P) Ltd. v. Datawind Innovations (P) Ltd., (2017) 7
                                 SCC 678 : (2017) 3 SCC (Civ) 760] , after clearing the air on the
                                 meaning of Section 20 of the Arbitration Act, 1996, the Court in
                                 para 19 (which has already been set out hereinabove) made it
                                 clear that the moment a seat is designated by agreement between
                                 the parties, it is akin to an exclusive jurisdiction clause, which

Signature Not Verified
Digitally Signed
                          ARB.P. 1885/2025                                                     Page 12 of 14
By:HARVINDER KAUR
BHATIA
Signing Date:03.02.2026
17:42:57
                                      would then vest the courts at the "seat" with exclusive jurisdiction
                                     for purposes of regulating arbitral proceedings arising out of the
                                     agreement between the parties."

                          12.        In any event, the parties are at Gurugram, and the performance
                          of the contract has been at Gurugram, which is a part of the NCR
                          region, and therefore, New Delhi, being the seat and venue, does not
                          render the said objection sustainable to the present petition.
                          13.        In view of the foregoing, and as the dispute is stated to be for an
                          amount of Rs. 1.20 Crores approximately, Mr. Saurabh Seth,
                          Advocate (Mobile No. 9811393402), who is empanelled with the
                          Delhi International Arbitration Centre6, is appointed by this court
                          to adjudicate the disputes as between the parties.
                          14.        The arbitration would take place under the aegis of the DIAC
                          and would abide by its rules and regulations. The learned Arbitrator
                          shall be entitled to fees as per the Schedule of Fees maintained by the
                          DIAC.
                          15.        The learned Arbitrator is also requested to file the requisite
                          disclosure under Section 12 (2) of the Act within a week of entering
                          reference.
                          16.        The Registry is directed to send a receipt of this order to the
                          learned Arbitrator through all permissible modes, including through e-
                          mail.
                          17.        All rights and contentions of the parties in relation to the
                          claims/counter-claims are kept open, to be decided by the learned
                          Arbitrator on their merits, in accordance with law.
                          18.        Needless to say, nothing in this order shall be construed as an
                          expression of opinion of this Court on the merits of the controversy

                          6
                              DIAC
Signature Not Verified
Digitally Signed
                          ARB.P. 1885/2025                                                        Page 13 of 14
By:HARVINDER KAUR
BHATIA
Signing Date:03.02.2026
17:42:57
                           between the parties.
                          19.    Accordingly, the present petition, along with all pending
                          application(s), if any, is disposed of.



                                            HARISH VAIDYANATHAN SHANKAR, J.

JANUARY 28, 2026/ rk/her/sg

 
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