Bombay High Court Allows Arbitration Petition in Commercial Dispute — Appointment of Sole Arbitrator under Section 11 of Arbitration and Conciliation Act, 1996. Court appoints retired judge as sole arbitrator to adjudicate disputes arising from a Master Service Agreement between parties.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Zanmai Labs Private Limited, filed a Commercial Arbitration Petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator to adjudicate disputes arising from a Master Service Agreement dated 1 April 2022 with the respondent, Bitcipher Labs LLP. The petition was accompanied by an Interim Application (L) No. 12640 of 2025. The court noted that the arbitration agreement was contained in Clause 13 of the Master Service Agreement. The respondent did not appear despite service. The court, after considering the pleadings and the existence of the arbitration agreement, allowed the petition and appointed a retired judge of the Bombay High Court as the sole arbitrator. The court directed the arbitrator to file a disclosure under Section 11(8) read with Section 12(1) of the Act within two weeks. The interim application was disposed of as infructuous. The court also clarified that it had not expressed any opinion on the merits of the dispute.

Headnote

A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - Petition under Section 11 for appointment of sole arbitrator - Court found that a valid arbitration agreement existed between the parties and that disputes had arisen - Held that the petition was maintainable and appointed a retired judge as sole arbitrator (Paras 1-5).

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Issue of Consideration

Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996, given the existence of an arbitration agreement between the parties.

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Final Decision

The court allowed the Commercial Arbitration Petition (L) No. 11646 of 2025 and appointed a retired judge of the Bombay High Court as the sole arbitrator. The arbitrator was directed to file a disclosure under Section 11(8) read with Section 12(1) of the Act within two weeks. The Interim Application (L) No. 12640 of 2025 was disposed of as infructuous. The court clarified that it had not expressed any opinion on the merits of the dispute.

Law Points

  • Section 11 of the Arbitration and Conciliation Act
  • 1996
  • Appointment of Arbitrator
  • Existence of Arbitration Agreement
  • Commercial Dispute
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Case Details

2025 LawText (BOM) (10) 30

Commercial Arbitration Petition (L) No. 11646 of 2025 with Interim Application (L) No. 12640 of 2025

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Zanmai Labs Private Limited

Bitcipher Labs LLP

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Nature of Litigation

Commercial Arbitration Petition under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of sole arbitrator.

Remedy Sought

Appointment of a sole arbitrator to adjudicate disputes arising from a Master Service Agreement.

Filing Reason

Disputes arose between the parties under the Master Service Agreement dated 1 April 2022, which contained an arbitration clause.

Issues

Whether a valid arbitration agreement exists between the parties. Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996.

Submissions/Arguments

Petitioner submitted that disputes had arisen under the Master Service Agreement and that the arbitration clause was valid. Respondent did not appear despite service.

Ratio Decidendi

Where a valid arbitration agreement exists and disputes have arisen between the parties, the court has the power under Section 11 of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator to adjudicate the disputes.

Judgment Excerpts

The petition is allowed. The arbitrator shall file a disclosure under Section 11(8) read with Section 12(1) of the Act within two weeks.

Procedural History

The petitioner filed Commercial Arbitration Petition (L) No. 11646 of 2025 along with Interim Application (L) No. 12640 of 2025. The respondent did not appear. The court heard the petition and allowed it.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 11, Section 11(8), Section 12(1)
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