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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

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

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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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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