Bombay High Court
Yogesh Vilas RajeversusVna Retail Pvt Ltd
- Decided
- Disposal
- DISPOSED OFF
- Bench
- ARUN R PEDNEKER
Holding
The court appointed Ms Dhruti Kapadia as the sole arbitrator to adjudicate the disputes arising under the agreement.
Summary
The applicant, Yogesh Vilas Raje, entered into a Share Purchase Agreement with VNA Retail Pvt Ltd that contained a clause mandating arbitration under the LCIA India Rules. The applicant served a notice of arbitration on 15 January 2025, but the respondents did not appear, and subsequent attempts to serve them by registered post failed, leading the court to permit service by publication. The applicant then filed an arbitration application seeking the appointment of arbitrators as per the agreement. The court examined whether it could appoint a sole arbitrator despite the contract specifying a three‑member tribunal and considered the adequacy of service under the Arbitration and Conciliation Act. Relying on the Act’s provisions, the court appointed Ms Dhruti Kapadia as the sole arbitrator and directed compliance with disclosure requirements under Sections 11(8) and 12(1). The application was consequently disposed of with directions for the conduct of the arbitration.
Issues considered
- Whether service of notice by publication satisfies the requirements of the Arbitration and Conciliation Act, 1996.
- Whether the court can appoint a sole arbitrator notwithstanding the parties' agreement for a three‑member tribunal.
- Whether the court has jurisdiction to appoint an arbitrator under the arbitration agreement.
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 11(8), 12(1)
Subjects
- arbitration
- service of notice
- appointment of arbitrator
- Arbitration and Conciliation Act
- Section 11(8)
- Section 12(1)
- LCIA India Rules
- arbitration costs
- seat of arbitration
Judgment
15-ARBAP-34-2026.DOC
ARP
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
ARBITRATION APPLICATION NO. 34 OF 2026
Yogesh Vilas Raje ...Applicant
Versus
VNA Retail Pvt Ltd And Ors. ...Respondents
Mr. M. J. Bhatt, for the Applicant.
None for the Respondent.
CORAM ARUN R. PEDNEKER, J.
DATED: 17th JUNE 2026
PC:-
1. Heard the learned counsel for the Applicant. He submits
that the notice was issued by registered post on 09.02.2026.
Thereafter, this Court issued court notice. However, the
Respondents were not found at the given address. Thereafter,
this Court permitted service of notice through publication.
2. Consequently, the Applicant has filed an affidavit of
service stating that on 01.06.2026, notice was published in
"The Free Press Journal" (English language newspaper) and in
"Nav Shakti" (Marathi language newspaper), having
circulation in the city of Mumbai. The Respondent has not
entered appearance. However, the Court treats it to be a good
service.
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3. The learned counsel for the Applicant submits that the
Applicant had entered into a Share Purchase Agreement dated
06.12.2022 with the Respondent-Company. He submits that
Clause No.10.6 provides resolution of disputes arising out of
the agreement. The said Clause reads as under:
"10.6 Dispute Resolution.
10.6.1 Any dispute arising out of or in connection with this
Agreement, including any question regarding, its existence,
validity or termination, shall be referred to and finally
resolved by arbitration in Mumbai in accordance with the
LCIA India Rules ("LCIA India Rules") for the time being in
force, which rules are deemed to be incorporated by reference
in this Section.
10.6.2 The Tribunal shall consist of 3(three) arbitrators. The
Promoters and the Company shall jointly appoint 1(one)
arbitrator and the Investors shall appoint 1(one) arbitrator.
The two arbitrators so appointed shall thereafter appoint a
third arbitrator. The decision of the Tribunal shall be final and
binding on the Parties.
10.6.3 The language of the arbitration shall be English.
10.6.4 The arbitrator shall be entitled to award costs of the
arbitration. Subject to the aforesaid, each Party to any
arbitration shall bear its own expense in relation thereto,
including, but not limited to such Party's attorneys' fees and
the expenses and fees of the arbitrator shall be borne equally
by the parties to the dispute."
4. Disputes having arisen between the parties, the
Applicant invoked arbitration by notice dated 15.01.2025.
There is no response to the said notice by the Respondents. As
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such, the present Application is filed for appointment of an
arbitrator.
5. In view of the above and having considered the
material, this Court would pass the following order :-
(A) Ms. Dhruti Kapadia, learned Advocate of this Court is
appointed as the sole Arbitrator to adjudicate upon the
disputes and differences between the parties arising out of
and in connection with the Agreement referred to above. The
contact details of the Arbitrator are as under :-
Address : 513, Prospect Chambers, Dr. D. N.
Road, Opp. Petit Library, Fort,
Mumbai - 400001
Mobile No. : 9757095290
Email ID : [email protected]
(B) A copy of this order be communicated to the learned
sole Arbitrator by the Advocates for the Applicant within a
period of 1 week from the date of uploading of this order.
The Applicant shall provide the contact and communication
particulars of the parties to the Arbitral Tribunal along with a
copy of this order.
(C) Seat of the arbitration would be governed by the
provisions of the agreement executed between the parties.
(D) Learned sole Arbitrator is requested to forward the
statutory Statement of Disclosure under Section 11(8) read
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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 this Application and a copy of the
same shall be furnished by the Advocates for the Applicant to
the Respondent.
(E) The parties shall appear before the learned sole
Arbitrator on such date and at such place as indicated by her,
to obtain appropriate direction 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, if any,
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.
6. All contentions are expressly kept open to be agitated
before the Arbitral Tribunal appointed as above.
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7. With the above directions, the Arbitration Application
stands disposed of accordingly.
(ARUN R. PEDNEKER, J.)
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