Bombay High Court
TYGER CAPITAL PRIVATE LIMITEDversusADVANCED IT SOLUTIONS
- Decided
- Disposal
- DISPOSED OFF
Holding
The Court held that a valid arbitration agreement exists and was properly invoked, and therefore appointed a sole arbitrator.
Summary
Tyger Capital Private Limited (Applicant) entered into a Facility Agreement and a Guarantee Agreement with Advanced IT Solutions and the Khampria guarantors on 31 August 2025. The loan facility of Rs. 2 crore was defaulted upon by the borrower, and the Applicant served a legal notice on 7 March 2026 demanding payment and invoking the arbitration clause. The Respondents did not contest the existence of the arbitration agreement and did not oppose the appointment of an arbitrator. The High Court examined whether a valid arbitration agreement existed and whether the arbitration was properly invoked under Section 11 of the Arbitration and Conciliation Act, 1996. Finding that the arbitration clauses in both agreements were enforceable and that the notice constituted a valid invocation, the Court appointed Dr. Shirish Gadge as the sole arbitrator and issued procedural directions for the arbitration.
Issues considered
- Whether a valid arbitration agreement exists between the parties under the Facility and Guarantee Agreements.
- Whether the notice dated 7 March 2026 constitutes a valid invocation of arbitration under Section 11 of the Arbitration and Conciliation Act, 1996.
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 11, 11(8), 12(1)
Subjects
- Arbitration
- Section 11 application
- Appointment of arbitrator
- Loan default
- Guarantee agreement
- Arbitration agreement validity
- High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION APPLICATION NO.216 OF 2026
Tyger Capital Private Limited ] .. Applicant
Versus
1. Advanced IT Solutions ]
2. Pallavi Prashant Khampria ]
3. Prashant Mangal Khampria ] .. Respondents
Mr. Ahan Gadkari with Ms. Shreya Bhatia, Advocates, i/by Mohit Gadkari &
Co., for the Applicant.
Ms. Aafreen S. Shaikh, Advocate for the Respondents.
CORAM : GAUTAM A. ANKHAD, J.
DATE : 3rd September, 2026.
P.C. :
1. This Section 11 Application is filed seeking appointment of an Arbitrator
in relation to the disputes that have arisen under the Facility Letter cum
Agreement dated 31st August 2025 (“Facility Agreement”) and Letter of
Guarantee dated 31st August 2025 (“Guarantee Agreement”) executed
between the parties. The arbitration agreement between the parties is recorded
at Clause No.17 of the Facility Agreement and Clause 12 of the Guarantee
Agreement, the relevant portion of which reads as under:-
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“Facility Letter cum Agreement:
17. DISPUTE RESOLUTION
17.1 All disputes, differences, claims and questions whatsoever
arising out of this Facility Letter or the breach, termination or
invalidity hereof between the Parties (“Dispute") shall be
resolved through arbitration and in accordance with the
provisions of the Arbitration and Conciliation Act, 1996
(including any statutory modification or re-enactment thereof
from the time to time) for settlement of the Dispute.
17.2 The Dispute shall be referred to a sole arbitrator, to be
appointed by the Company. The arbitration proceedings shall be
held at Mumbai in the English language.
17.3 The arbitrator's award shall be: (a) in writing and shall contain
reasons for the decision and (b) binding on the Parties and
enforceable in any competent court of law. The award shall
allocate or apportion the costs of the arbitration as the
arbitrator deems fair. The Company shall be entitled to seek
interim relief from the courts of India.
17.4 Neither the existence of any Dispute nor the fact that any
arbitration is pending hereunder shall relieve any of the Parties
of their respective obligations under this Facility Letter. The
pendency of Dispute in any arbitration proceeding shall not
affect the performance of the obligations under this Facility
Letter
Letter of Guarantee:
12. Dispute RESOLUTION
Subject to the provision of clause No. 15 above, if any disputes,
disagreement, differences ("Dispute") arise between the Parties
(including any Borrower(s)) during the subsistence of the
Agreement and/or thereafter, in connection with, inter alia, the
validity, interpretation, implementation and/or alleged breach of
any provision of the Agreement, jurisdiction or
existence/appointment of the arbitrator or of any nature
whatsoever, then, the Dispute shall be referred to a sole arbitrator
who shall be appointed by the Company. In any circumstance, the
appointment of the sole arbitrator by the Company shall be and
shall always deemed to be the sole means for securing the
appointment/nomination of the sole arbitrator, without recourse to
any other alternative mode of appointment of the sole arbitrator.
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The place of the arbitration shall be in Mumbai or such other place
as may be notified by the Company and the arbitration proceedings
shall be governed by the Arbitration & Conciliation Act, 1996 (or
any statutory re-enactment thereof, for the time being in force) and
shall be in the English language. The award shall be binding on the
Parties subject to the applicable laws inforce and the award shall
be enforceable in any competent court of law”
2. Mr. Gadkari, learned counsel appearing for the Applicant submits that
vide Sanction Letter dated 31st August 2025 and the consequent Facility
Agreement, Respondent no. 1 availed a loan facility of Rs. 2,00,00,000/- from
the Applicant. Respondent nos. 2 and 3 are the guarantors for the said facility
under the Guarantee Agreement. Respondent no. 1 has defaulted in the re-
payment of the loan facility and has further failed to regularize the account. In
these circumstances, the Applicant addressed legal notice dated 7th March 2026,
whereby the Applicant recalled Sanction Letter, Facility Agreement and the
Guarantee Agreement and called upon all the Respondents to pay the amounts
stated therein failing which the Applicant would be constrained to proceed
further to arbitration. There was no reply to the said notice.
3. Ms. Shaikh, learned counsel appearing for the Respondents, admits to
the existence of the Agreement and invocation of arbitration. She submits, on
instructions, that the respondents are not opposing appointment of arbitrator.
4. The record demonstrates that the parties have executed the Facility
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Agreement and Guarantee Agreement. The Applicant has invoked arbitration
by its Advocate’s notice dated 7th March 2026 which notice has been received
by the Respondents. The acknowledgment receipts are at pages 75 to 80 of the
paper-book. At this stage, this Court is only required to examine whether an
arbitration agreement exists between the parties and whether arbitration has
been validly invoked. I am satisfied that there exists a valid arbitration
agreement in the Facility Agreement and the Guarantee Agreement and the
same has been validly invoked on 7th March 2026. The learned counsels have
jointly suggested the name of an Arbitrator. Hence, this Application is allowed
in terms of the following order:-
[A]. Dr. Shirish Gadge, Retired District Judge is hereby
appointed as the sole Arbitrator to adjudicate upon the
disputes and differences between the parties arising out of
and in connection with the Facility Agreement and the
Guarantee Agreement referred to above. The contact details
of Dr. Shirish Gadge, the sole Arbitrator, are as under:
Office Address : Flat no. A-101, 10th Floor, ‘A’ Wing,
Iris Park, near Amboli Police Station,
Patel Estate Road, Jogeshwari (West),
Mumbai – 400 102.
Mobile Number : 9929944044
E-mail ID : [email protected]
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[B]. A copy of this order will be communicated to the learned
Arbitrator by the Advocate for the Applicant within a
period of one week from the date on which this order is
uploaded on the website of this Court. The Applicant shall
provide the contact and communication particulars of the
parties to the Arbitral Tribunal along with a copy of this
order;
[C]. The learned Arbitrator is requested to forward the statutory
Statement of Disclosure under Section 11(8) read with
Section 12(1) of the Act to the Advocate for the Applicant
so as to enable them to file the same in the Registry of this
Court. The Registry of this Court shall retain the said
Statement on the file of this Application and a copy of the
same shall be furnished by the Advocate for the Applicant
to the Respondents;
[D]. The parties shall appear before the learned Arbitrator on
such date either on V.C. mode or at such place as indicated
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to obtain appropriate directions with regard to conduct of
the arbitration including fixing schedule for pleadings,
examination of witnesses, schedule of hearings etc.
[E]. The fees of the learned Arbitrator shall be as per the Fourth
Schedule of the Act read with the Bombay High Court (Fee
Payable to Arbitrators) Rules, 2018.
[F]. All issues, claims and counterclaims are kept open to be
agitated before the Tribunal.
[G]. The arbitration shall be held at Mumbai.
[ GAUTAM A. ANKHAD, J. ]
Digitally
signed by 6/6
SNEHA SNEHA
ABHAY
ABHAY DIXIT 4-ARBAP-216-2026.doc Dixit
Date:
DIXIT 2026.09.07
10:40:59
+0530
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