Bombay High Court Allows Arbitration Petition and Appoints Sole Arbitrator in Dispute Between Bhartiya Samruddhi Finance Ltd. and State of Maharashtra. Court holds that disputes arising from a contract containing an arbitration clause are arbitrable and appoints arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

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

The petitioner, Bhartiya Samruddhi Finance Ltd., filed an arbitration petition under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator to resolve disputes with the respondents, the State of Maharashtra and another. The disputes arose from a contract that contained an arbitration clause. The court considered the existence of the arbitration clause and whether the disputes fell within its scope. The court found that the arbitration clause was valid and covered the disputes. Consequently, the court allowed the petition and appointed a sole arbitrator to adjudicate the disputes. The court also disposed of the interim applications.

Headnote

A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Clause - The petitioner sought appointment of an arbitrator for disputes arising from a contract containing an arbitration clause. The court examined the contract and found that the arbitration clause existed and covered the disputes. Held that the disputes are arbitrable and appointed a sole arbitrator. (Paras 1-10)

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Issue of Consideration

Whether the disputes between the parties are arbitrable and whether the court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

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Final Decision

The court allowed the arbitration petition and appointed a sole arbitrator to adjudicate the disputes. The interim applications were also disposed of.

Law Points

  • Arbitration agreement
  • Appointment of arbitrator
  • Section 11 Arbitration and Conciliation Act
  • 1996
  • Existence of arbitration clause
  • Dispute arbitrable
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Case Details

2025 LawText (BOM) (10) 33

Commercial Arbitration Petition No. 166 of 2022

0000-00-00

Bhartiya Samruddhi Finance Ltd.

The State of Maharashtra & Anr.

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Nature of Litigation

Commercial arbitration petition for appointment of arbitrator

Remedy Sought

Appointment of a sole arbitrator to resolve disputes

Filing Reason

Disputes arose under a contract containing an arbitration clause

Issues

Whether the disputes are arbitrable under the arbitration clause Whether the court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996

Submissions/Arguments

Petitioner argued that the contract contains an arbitration clause and disputes have arisen Respondents opposed the appointment, but details not mentioned

Ratio Decidendi

The court held that the existence of an arbitration clause in the contract makes the disputes arbitrable, and the court has jurisdiction to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Judgment Excerpts

The court found that the arbitration clause existed and covered the disputes.

Procedural History

The petitioner filed Commercial Arbitration Petition No. 166 of 2022 seeking appointment of an arbitrator. Interim applications were also filed. The court heard the matter and passed the order.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 11
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