Case Note & Summary
The applicant, Mangal Credit and Fincorp Limited, a public limited company incorporated under the Companies Act, 1956, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 (ACA) seeking appointment of a sole arbitrator to adjudicate disputes with the respondent, Ulka Chandrashekhar Nair, arising out of a loan agreement. The loan agreement contained an arbitration clause. The applicant contended that disputes arose and despite notice, the respondent failed to appoint an arbitrator. The court, after hearing the parties, found that the arbitration clause existed and the respondent had not appointed an arbitrator. The court allowed the application and appointed a sole arbitrator to adjudicate the disputes. The judgment was reserved on 26 September 2025 and pronounced on 10 October 2025.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The applicant sought appointment of a sole arbitrator to adjudicate disputes arising from a loan agreement containing an arbitration clause. The respondent failed to appoint an arbitrator despite notice. The court held that the arbitration clause existed and the respondent's failure to appoint an arbitrator entitled the applicant to seek appointment under Section 11. (Paras 1-2)
Issue of Consideration
Whether the applicant is entitled to appointment of a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, given the existence of an arbitration clause in the loan agreement and the respondent's failure to appoint an arbitrator.
Final Decision
The court allowed the application and appointed a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Section 11 of the Arbitration and Conciliation Act
- 1996
- Appointment of arbitrator
- Existence of arbitration agreement
- Failure to appoint arbitrator
Case Details
2025 LawText (BOM) (10) 23
Arbitration Application (L) No. 29984 of 2023
Pankaj Jain, a/w Pradeep Purohit i/by P. D. Jain & Co., for the Applicant; Reshant V. Shah, i/by Lex Conseiller Shah, for the Respondent
Mangal Credit and Fincorp Limited
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Nature of Litigation
Application under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of a sole arbitrator.
Remedy Sought
Appointment of a sole arbitrator to adjudicate disputes between the applicant and the respondent arising out of a loan agreement.
Filing Reason
Disputes arose between the parties under a loan agreement containing an arbitration clause, and the respondent failed to appoint an arbitrator despite notice.
Issues
Whether the arbitration clause exists in the loan agreement between the parties.
Whether the respondent failed to appoint an arbitrator despite notice, entitling the applicant to seek appointment under Section 11 of the ACA.
Submissions/Arguments
Applicant submitted that the loan agreement contained an arbitration clause and that disputes arose, and despite notice, the respondent failed to appoint an arbitrator.
Respondent's submissions are not detailed in the judgment text.
Ratio Decidendi
Where an arbitration agreement exists and a party fails to appoint an arbitrator despite notice, the other party is entitled to seek appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Judgment Excerpts
This is an Application under Section 11 of the Arbitration and Conciliation Act, 1996 (“ACA” for short) praying for an appointment of a sole arbitrator under Section 11 of the ACA.
Procedural History
The application was filed under Section 11 of the Arbitration and Conciliation Act, 1996. The court reserved judgment on 26 September 2025 and pronounced it on 10 October 2025.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 11
- Companies Act, 1956:
