[Cites 9, Cited by 0]
Punjab-Haryana High Court
Abhiyan Capital Pvt Ltd vs Seema on 2 April, 2026
Author: Jasgurpreet Singh Puri
Bench: Jasgurpreet Singh Puri
ARB-542-2025 -1-
263
IN THE HIGH COURT OF PUNJAB & HARYANA
AT CHANDIGARH
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ARB-542-2025 (O&M)
Date of Decision: 02.04.2026
Abhiyan Capital (India) Private Limited .... Applicant
Versus
Seema and others ..... Respondents
CORAM: HON'BLE MR. JUSTICE JASGURPREET SINGH PURI
Present: Mr. Gaurav Gupta, Advocate for the applicant.
None for the respondents.
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JASGURPREET SINGH PURI, J. (ORAL)
1. The present application has been filed under Section 11(6) of
the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the
Act') praying for appointment of an independent Sole Arbitrator to adjudicate
upon the disputes which have arisen between the parties.
2. Learned counsel for the applicant submitted that a loan
agreement was executed between the applicant and the respondents vide
Annexure P-1 which contains a valid arbitration clause i.e. Clause 33(A)
pertaining to Dispute Resolution. The said arbitration clause provides that all
disputes, differences and/or claims including occurrence of an event of
default shall be referred to a Sole Arbitrator, who is to be appointed by the
Lender. He further submitted that unilateral appointment of the Sole
Arbitrator at the discretion of the respondent is impermissible under the law
in view of amendment of the Act which was carried out in the year 2015
whereby Section 12(5) of the Act was added as well as the law settled by
Hon'ble Supreme Court in "Perkins Eastman Architects DPC Vs. HSCC
(India) Ltd.", 2020(20) SCC 760. He also submitted that a notice under
Section 21 of the Act invoking the aforesaid arbitration clause was issued to
the respondents vide Annexure P-4 on 22.06.2025 by a registered post and a
copy of the receipts has been attached along with Annexure P-4. However,
no response has been received from the respondents. Therefore, the present
application has been filed under Section 11 of the Act for appointment of an
independent Sole Arbitrator.
3. I have heard learned counsel for the applicant.
4. In the present case, respondents have been proceeded against ex
parte vide order dated 16.03.2026 after service of summons. The matter was
fixed today for final arguments. Today also, the matter has been called twice
but none has caused appearance on behalf of the respondents.
5. A perusal of the Agreement (Annexure P-1) reveals the prima
facie existence of a valid arbitration clause i.e. Clause 33-A, which is
reproduced as under:-
"33. DISPUTE RESOLUTION
A. Arbitration The Parties hereto mutually agree that all
disputes, differences and/or claims, including occurrence
of an event of default as per clause 16, arising out of this
Agreement or as to the construction, meaning or effect
hereof or as to the rights and liabilities of the parties
hereunder shall be settled by arbitration to be held in
Gurgaon in accordance with the Arbitration and
Conciliation Act 1996, or any statutory amendments
thereof and shall be referred to a sole arbitrator to be
appointed by the Lender. In the event of death, refusal,
neglect, inability, or incapability of the person so
appointed to act as an arbitrator, the Lender may
appoint a new arbitrator. The proceedings will be
conducted in English language. The award of the
arbitrator shall be final and binding on all parties
concerned. The Parties hereto agree that the place, seat
and venue of such arbitration shall be Gurgaon, Haryana."
5. Notice under Section 21 of the Act for invoking the said
arbitration clause was also issued to the respondents vide Annexure P-4, but as
per the learned counsel for the applicant, no such response was received from
the respondent. A perusal of the Agreement (Annexure P-1) also reveals that it
bears the signatures of the respondents.
6. In view of the above, this Court is of the considered view that all
the essential conditions for appointment of a Sole Arbitrator under Section 11
of the Act stand satisfied. Consequently, the present application is allowed.
Ms. Jyoti Choudhary, Advocate resident of House No.2058/3, Sector
45-C, Chandigarh, Mobile No.9041075460, email ID:
[email protected], is nominated as the Sole Arbitrator to
adjudicate the dispute between the parties, subject to compliance of statutory
provisions including Section 12 of the Act.
7. Parties are directed to appear before the learned Arbitrator on
date, time and place to be fixed and communicated by the learned Arbitrator
at her convenience.
8. Fee shall be paid to the learned Arbitrator in accordance with the
Fourth Schedule of the Arbitration Act, as amended.
9. Learned Arbitrator is also requested to complete the proceedings
as per the time limit prescribed under Section 29-A of the Act.
10. A request letter alongwith a copy of the order be sent to Ms. Jyoti
Choudhary, Advocate.
02.04.2026 (JASGURPREET SINGH PURI)
Bhumika JUDGE
1. Whether speaking/reasoned: Yes/No
2. Whether reportable: Yes/No
