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Bombay High Court

Jagruti T SharmaversusAmber Apartment Makers Pvt Ltd

Decided
Disposal
DISPOSED OFF

Holding

The court held that the disputes arising out of or in connection with the agreements dated 25 November 1988 are covered by the arbitration agreement and must be referred to arbitration.

Summary

The applicants filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator for disputes arising under agreements dated 25 November 1988. The respondent contended that the claims sought to be enforced relate to a later development agreement and therefore fall outside the 1988 arbitration agreement. The court noted that under Section 11 its role is limited to determining the existence of an arbitration agreement, not the merits of the dispute. Finding that the arbitration agreement in the 1988 contracts is valid, the court held that the disputes arising out of or in connection with those contracts must be referred to arbitration. Consequently, the court appointed Mr. Lizum Wangdi as sole arbitrator and issued procedural directions, while leaving all substantive issues open for determination by the arbitrator.

Issues considered

  • Whether the disputes claimed by the applicants fall within the scope of the arbitration agreement contained in the agreements dated 25 November 1988.
  • Whether the court can appoint an arbitrator under Section 11 despite the respondent's argument that the claims arise from a subsequent development agreement.

Legislation cited

Subjects

  • Arbitration
  • Section 11
  • Arbitration agreement
  • Jurisdiction
  • Appointment of arbitrator
  • Subsequent agreement
  • Dispute resolution

Judgment

                                                                      29-ARBAP-228-2026.doc


                   Vivekanand
                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                ORDINARY ORIGINAL CIVIL JURISDICTION

                                ARBITRATION APPLICATION NO. 228 OF 2026
                   Jagruti T Sharma & Ors.                     … Applicants
SHABNOOR                       V/s.
AYUB               Amber Apartment Makers Pvt Ltd              … Respondent
PATHAN
Digitally signed
by SHABNOOR
AYUB PATHAN        Ms. Usha Singh i/by Vyas & Bhalwal, for the
Date: 2026.08.28
18:48:50 +0530     Applicants.
                   Mr. Karl Tamboly a/w Ms. Nikita Vardhan a/w.
                   Ms.Srushtee Panhale i/by Kanga & Co, for the
                   Respondent.


                                               CORAM      : AMIT BORKAR, J.

                                               DATED      : AUGUST 28, 2026
                   P.C.:

                   1.      The present Application has been filed under Section 11 of
                   the Arbitration and Conciliation Act, 1996 (“the Act”), seeking
                   appointment of an Arbitrator in respect of the disputes and
                   differences stated to have arisen between the parties under the
                   respective agreements dated 25 November 1988. The arbitration
                   agreement between the parties is contained in the said
                   agreements.

                   2.      The Respondent has opposed the present Application mainly
                   on the ground that the rights sought to be enforced by the
                   Applicants arise out of a subsequent agreement and not out of the
                   agreements     dated   25   November    1988.   According    to    the
                   Respondent, the only obligation cast upon him under the
                   agreement dated 25 November 1988 was to pay an amount of Rs.


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31 lakhs under the agreement dated 29 November 1988, which
obligation has already been performed. It is, therefore, submitted
that the rights which the Applicants are seeking to enforce arise
out of the subsequent development agreement. It is further
submitted that the Applicants are not parties to the said
subsequent development agreement and that the Applicants have
already filed a suit for enforcement of the rights arising out of the
said subsequent agreement.

3.    At this stage, this Court is required to consider the limited
scope of jurisdiction under Section 11 of the Act. In view of the
law laid down by the Supreme Court in Interplay between
Arbitration Agreements under the Arbitration and Conciliation Act,
1996 and the Stamp Act, 1899 (“Interplay”), the power of this
Court at the stage of Section 11 is limited to examining the
existence of an arbitration agreement. This Court is not required,
at this stage, to examine the merits of the disputes or finally decide
the rights and contentions of the parties.

4.    In the present case, the existence of the arbitration
agreement contained in the agreements dated 25 November 1988
is not in dispute. The objection raised by the Respondent
essentially relates to the nature of the claims sought to be raised
by the Applicants and whether such claims arise out of the
subsequent development agreement or fall within the scope of the
arbitration agreement contained in the agreements dated 25
November 1988. These issues can appropriately be considered by
the learned Arbitrator in accordance with law.




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5.   In view of the above, this Court is satisfied that the disputes
arising out of or in connection with the agreements dated 25
November 1988 are required to be referred to arbitration.
6.   In view of the aforesaid, the present Application filed under
Section 11 of the Act deserves to be disposed of by passing the
following order:

     A)     Accordingly, Mr. _Lizum. Wangdi, is hereby appointed as
     the Sole Arbitrator to adjudicate upon the disputes and
     differences between the parties arising out of or in
     connection with the respective agreements dated 25
     November 1988; Office Address:- Office Address:- 205, 2nd
     Floor, Arcadia, NCPA Marg, Nariman Point, Mumbai – 400
     021.

      Email – [email protected]

     B)     A copy of this Order will be communicated to the
     Learned Sole Arbitrator by the Advocates for the
     Applicant within a period of one week from today. 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 Sole Arbitrator is requested to
     forward the statutory Statement of Disclosure under
     Section 11(8) read with Section 12(1) of the Act to the
     Advocates 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




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     this Applicant and a copy of the same shall be furnished
     by the Advocates for the Applicant to the Advocates for
     the Respondent;

     D)      The Learned Sole Arbitrator is requested to
     forward the statutory Statement of Disclosure under
     Section 11(8) read with Section 12(1) of the Act to the
     parties within a period of two weeks from receipt of a
     copy of this Order;

     E)      The parties shall appear before the Learned Sole
     Arbitrator on such date and at such place as indicated, to
     obtain appropriate directions with regard to conduct of
     the arbitration including fixing a schedule for pleadings,
     examination of witnesses, if any, schedule of hearings
     etc. At such meeting, the parties shall provide a valid
     and functional email address along with mobile and
     landline numbers of the respective Advocates of the
     parties to the Arbitral Tribunal. Communications to such
     email     addresses   shall   constitute   valid   service     of
     correspondence in connection with the arbitration;

     F)      All arbitral costs and fees of the Arbitral Tribunal
     shall be borne by the parties equally in the first instance,
     and shall be subject to any final Award that may be
     passed by the Tribunal in relation to costs.

7.   It is made clear that the disputes arising out of or in
connection with the agreements dated 25 November 1988 shall be
decided by the learned Arbitrator in accordance with law. The



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appointment of the learned Arbitrator shall not be construed as
any finding by this Court on the rights claimed by the Applicants
under any subsequent agreement or development agreement.

8.    Since the agreement entered into with each Applicant is
separate, the learned Arbitrator shall decide the disputes arising
out of the respective agreement dated 25 November 1988 entered
into with each Applicant separately and in accordance with law.

9.    All issues on merits are expressly kept open to be raised and
agitated before the learned Arbitral Tribunal. In particular, the
contention of the Respondent that the claims of the Applicants
arise out of the subsequent development agreement and are not
covered by the arbitration agreement dated 25 November 1988 is
kept open for consideration by the learned Arbitrator.

10.   All actions required to be taken pursuant to this Order shall
be taken upon receipt of a downloaded copy of this Order as
available on the website of this Court.

                                            (AMIT BORKAR, J.)




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