Bombay High Court
DHL ECOMERCE (INDIA) PVT LTD (FORMERLY KNOWN AS DHL E - COMMERCE (INDIA) LLP)versusFRONTLINE (NCR) BUSINESS SOLUTIONS PVT LTD
- Decided
- Disposal
- DISPOSED OFF
- Bench
- ARUN R PEDNEKER
Holding
The court appointed Ms. Sadhna Jadhav as sole arbitrator, holding that the arbitration clause is prima facie applicable and the applicant is bound by the agreement.
Summary
The Bombay High Court considered an application under Section 11 of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator in a dispute arising from a service agreement dated 1 February 2018. The applicant, DHL E‑Commerce (India) Pvt. Ltd., claimed that it was bound by the arbitration clause in the agreement, while the respondent argued that there was no privity of contract because the original agreement was with DHL E‑Commerce (India) LLP and that any assignment required mutual consent. The court examined the addendum dated 1 April 2018 and the restructuring of the original LLP into a private limited company, finding that the agreement (including its arbitration clause) continued in force between the parties. Consequently, the court held that the arbitration clause was prima facie applicable and appointed Ms. Sadhna Jadhav as sole arbitrator. All issues were left open for determination by the arbitrator, and the commercial arbitration application and the related interim application were disposed of.
Issues considered
- Whether DHL E‑Commerce (India) Pvt. Ltd. is a party to the 2018 agreement and thus bound by its arbitration clause despite corporate restructuring.
- Whether the arbitration clause is enforceable given the respondent's objection that the assignment of rights required mutual consent under Clause 17.01.
- Whether the High Court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 11, 11(8), 12
Subjects
- Arbitration
- Assignment of rights
- Privity of contract
- Section 11
- Section 12
- Commercial arbitration
- Arbitration clause
- High Court
Judgment
Sonali Mane 16-CARAP-216-2025.docx
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
COM. ARBITRATION APPLICATION NO. 216 OF 2025
WITH
INTERIM APPLICATION (L) NO. 10679 OF 2025
IN
COM. ARBITRATION APPLICATION NO. 216 OF 2025
DHL Ecomerce (India) Pvt. Ltd. (Formerly
Known As DHL E -Commerce (India) LLP … Applicant
Versus
Frontline (NCR) Business Solutions Pvt. Ltd. … Respondent
Adv. Darshan Naik a/w Adv. Reshma Shirke, Adv. Gopalkrishna
Naik, Adv. K. L. Dalvi, Adv. Prabodh Sanade for Applicant.
Adv. Agam H. Maloo a/w Adv. Prakhar Tandon for Respondent.
CORAM : ARUN R. PEDNEKER, J.
DATE : 22 JULY, 2026
P.C. :
1. Heard learned counsel for the Applicant.
2. Learned counsel appearing for the Applicant seeks the
appointment of an Arbitrator in view of the disputes that have arisen
Digitally
signed by
MANE
MANE SONALI
SONALI DILIP
DILIP Date:
2026.07.27
14:45:40
+0530
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Sonali Mane 16-CARAP-216-2025.docx
between the parties under the agreement executed on 1 February, 2018
and with specific reference to the Clause No. 17.01, which provides for
resolution of disputes through arbitration. The said clause is noted
below for ready reference.
17.01 The rights and obligations under this Agreement are
personal to each party and shall not be assignable by either
party in whole or in part without the prior written consent of
the other party; provided, however, DHL may assign its rights
and obligations hereunder to any of its Affiliates. Subject to the
foregoing, this Agreement shall inure to the benefit of and be
binding upon successors and assigns of the parties hereto.
PROVIDER cannot sub contract any of its assignment under
this Agreement.
3. Learned counsel for the Applicant submits that the notice
invoking arbitration was issued on 17 February 2022. The notice is
responded by the Respondent, denying the arbitration clause and
denying the disputes. In view of the subsistence of the dispute, the
present application under Section 11 is filed for appointment of
Arbitrator.
4. The learned counsel appearing for the Respondent raises two
objections for the appointment of arbitral tribunal. He submits that the
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contract is between the Respondent and DHL E-Commerce (India) LLP
and not with the present Applicant. The Applicant herein is not party
to the said agreement and there is no privity of contract between them.
The second objection raised is that in terms of Clause No. 17.01 that
the assignment under the agreement can be only with the consent of
both the parties and the original party i.e. the DHL E-Commerce
(India) LLP could not have assigned any of the rights under the
original party agreement dated 1 February, 2018 without the consent
of the Respondent.
5. For the aforesaid two reasons, the learned counsel appearing
for the Respondent opposes the appointment of the Arbitrator. With
response thereto, learned counsel for the Applicant pointed out at page
52 in Addendum to the Master Service Agreement dated 1 April, 2018,
which indicates that the same is signed by the present Applicant as
well as the Respondent. It has referred to the service provider
agreement for security services dated 1 April, 2018 and Clause 2
provides that all other terms and conditions of the agreement which
are not amended by this category shall remain unchanged and remain
in force and effect between the parties.
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6. The learned counsel also submits that original LLP i.e. DHL
E-Commerce (India) LLP is now restructured as an DHL Ecommerce
India LLP Private Limited company has been incorporated as a private
limited company on 10 March, 2021. It is further submitted that the
service provider Agreement as dated 1 April, 2018 continues to remain
in force and effect between the Applicant and the Respondent.
7. Considering the Clause 17.05 and the Addendum signed on 14
April, 2021, as well as the similar addendum between the parties, it is
prima facie evident that the parties are governed by the arbitration
clause. Accordingly, the parties are referred to the arbitration. All
issues are left open, including the applicability of the arbitration
clauses and the liabilities arising between the Respondent and the
original LLP to be adjudicated by the Arbitrator. Leaving all issues
open, the Arbitrator is appointed.
(A) Ms. Sadhna Jadhav, Former Judge of Bombay High 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 :-
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Address : C/o. Adv. Vijay Hiremath 108,
Seksaria Chamber, Nagindas Master
Road, Opp. Commerce House, Kala
Ghoda, Fort, Mumbai - 400 001.
Email Id : [email protected]
Mobile No. : 9422989004
(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 and venue 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 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.
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(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.
8. All contentions of the parties are expressly kept open to be
raised before the Arbitrator.
9. With the above directions, Commercial Arbitration Application
stands disposed of accordingly. In view of disposal of Commercial
Arbitration Application, Interim Application is also disposed of.
[ARUN R. PEDNEKER, J.]
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