Case Note & Summary
The judgment concerns three arbitration petitions filed by DS Textiles, Madhuram Fabrics Pvt Ltd, and P R Packing Service against IIFL Finance Limited. The petitioners had entered into loan agreements with the respondent, which contained arbitration clauses. Disputes arose between the parties, and the petitioners invoked the arbitration clauses. However, the respondent did not appoint an arbitrator, leading the petitioners to file petitions under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator. The court, after hearing the parties, found that the disputes were arbitrable and that the arbitration clauses were valid. The court appointed a sole arbitrator, a retired judge of the Bombay High Court, to adjudicate the disputes. The arbitrator was directed to decide the disputes in accordance with law, and the parties were directed to appear before the arbitrator on a specified date. The petitions were disposed of accordingly.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Loan Agreement - The petitioners sought appointment of an arbitrator to resolve disputes arising from loan agreements with the respondent. The court, noting the existence of arbitration clauses, appointed a sole arbitrator to adjudicate the disputes. Held that the disputes are arbitrable and an arbitrator is appointed (Paras 1-3).
Issue of Consideration
Whether the disputes between the petitioners and the respondent arising out of loan agreements are arbitrable and whether a sole arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996.
Final Decision
The court allowed the petitions and appointed a sole arbitrator (a retired judge of the Bombay High Court) to adjudicate the disputes. The parties were directed to appear before the arbitrator on a specified date.
Law Points
- Arbitration agreement
- Appointment of arbitrator
- Section 11 of Arbitration and Conciliation Act
- 1996
- Loan agreement
- Dispute resolution
Case Details
2026 LawText (BOM) (04) 111
ARBP(L) No. 12097 of 2026, ARBP(L) No. 12128 of 2026, ARBP(L) No. 12154 of 2026
Mr. Pratik Barot a/w Adv Angel Pandey i/b Adv. Kruti Bhavsar for the Petitioner in ARBP(L)/12097/2026, ARBP(L)/12128/2026 & ARBP(L)/12154/2026; Ms. Mitali More, Officer of IIFL, is present.
DS Textiles, Madhuram Fabrics Pvt Ltd, P R Packing Service
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Nature of Litigation
Arbitration petitions 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 arising from loan agreements.
Filing Reason
Disputes arose between the petitioners and the respondent under loan agreements containing arbitration clauses; the respondent failed to appoint an arbitrator.
Issues
Whether the disputes are arbitrable under the arbitration clauses in the loan agreements.
Whether a sole arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
Petitioners submitted that the loan agreements contain arbitration clauses and disputes have arisen, but the respondent did not appoint an arbitrator.
Respondent's officer was present but no specific arguments recorded.
Ratio Decidendi
The court held that the disputes arising from loan agreements containing arbitration clauses are arbitrable, and in the absence of appointment by the respondent, the court can appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Judgment Excerpts
The court appointed a sole arbitrator to adjudicate the disputes.
The parties were directed to appear before the arbitrator on a specified date.
Procedural History
The petitioners filed arbitration petitions under Section 11 of the Arbitration and Conciliation Act, 1996 after the respondent failed to appoint an arbitrator. The court heard the parties and passed the order appointing a sole arbitrator.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 11
