Bhagwan Ramchand Mukhi v. Marvel Asta Constructions Llp

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION IN ITS COMMERCIAL DIVISION COMM. ARBITRATION PETITION NO. 7 OF 2025 Digitally signed by SHRADDHA KAMLESH TALEKAR Date:

2025.04.24 20:49:26 +0530 SHRADDHA KAMLESH TALEKAR Bhagwan Ramchand Mukhi

...Petitioner

Versus

Marvel Asta Construction LLP & Ors.

...Respondents

Mr. Akhilesh Jaiswal i/b Mr. Ranjeet Sangle, for Petitioner. Mr. Amit Gharte, for Respondents.

CORAM : SOMASEKHAR SUNDARESAN, J.

Date : March 25, 2025 P. C.

1.

This is a Petition under Section 11 of the Arbitration and Conciliation Act, 1996 ("the Act"), seeking appointment of an arbitrator in connection with disputes and differences that are said to have arisen between the parties under an agreement dated March 31, 2015. The arbitration agreement is contained in Clauses 9 and 10 of the Agreement (found at Page 52 of the Petition) and Clause 4 of the Supplementary Letter dated March 31, 2015 (found at Page 66 of the Petition). In the interest of brevity, the arbitration agreement is not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court.

2.

It is apparent from the record that the arbitration agreement was invoked by Petitioner on January 17, 2024, to which there is no response. 3.

The scope of review under Section 11 is explicitly set out in Section 11(6A) of the Act. It is now trite law, with particular regard to the decisions of a seven-judge bench in the Interplay Judgement1 followed by multiple others, including SBI General2 and Patel3 that the Section 11 Court ought not to venture beyond examining the existence of a validly existing arbitration Agreement that has been formally executed. Even questions of existential substance is a matter that falls squarely in the domain of the arbitral tribunal, in view of Section 16 of the Act.

4.

Being satisfied that an arbitration agreement is validly in existence, and that arbitration has been duly invoked, it is in the fitness of things to refer the disputes and differences between the parties in connection with the aforesaid agreement dated March 31, 2015 to arbitration by a Sole Arbitrator. 5.

Since the existence of arbitration agreement is not in doubt, no useful purpose would be served BY keeping this matter pending any further on the 1 In Re: Interplay Between Arbitration Agreements Under Arbitration and Conciliation Act, 1996 & Stamp Act, 1899 - (2024) 6 SCC 1 2 SBI General Insurance Co. Ltd. v. Krish Spinning - 2024 SCC OnLine SC 1754 3 Ajay Madhusudan Patel v. Jyotrindra S. Patel - 2024 SCC OnLine SC 2597

docket of this Court. Consequently, the Petition is finally disposed of in the following terms :

A] The disputes and differences covered by this Petition are hereby referred to the Indian Law Society's Centre for Arbitration and Mediation, Pune (https://ilsca.co.in), in terms of its Institutional Arbitration Rules, to appoint an appropriate arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreement referred to above; B] A copy of this Order will be communicated to the Indian Law Society's Centre for Arbitration and Mediation, Pune by the Advocates for the Petitioner within a period of one week from the date on which this order is uploaded on the website of this Court. The Petitioner shall provide the contact and communication particulars of the parties to the Centre 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 parties within a period of two weeks from receipt of a copy of this Order;

D] The parties shall appear before the Learned Sole Arbitrator on such date and at such place as indicated, to obtain appropriate directions with regard to conduct of the arbitration including fixing a schedule for pleadings, examination of witnesses, if any, schedule of hearings etc. At such meeting, the parties shall provide a valid and functional email address along with mobile and landline numbers of the respective Advocates of the parties to the Arbitral Tribunal.

Communications to such email addresses shall constitute valid service of correspondence in connection with the arbitration; E] All arbitral costs and fees of the Arbitral Tribunal shall be borne by the parties equally in the first instance, and shall be subject to any final Award that may be passed by the Tribunal in relation to costs. 6.

Needless to say, nothing contained in this order is an expression of an opinion on merits of the matter or the relative strength of the parties. All issues on merits are expressly kept open to be agitated before the arbitral tribunal appointed hereby.

7.

Since it is suggested that the disputes could be resolved without going for arbitration, the effect and operation of this order is deferred by a period of four weeks from the date on which it is uploaded on the website of this Court. 8.

All actions required to be taken pursuant to this order, shall be taken upon receipt of a downloaded copy as available on this Court's website. [ SOMASEKHAR SUNDARESAN, J.]