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Bombay High Court

Hemendra Hiralal JainversusHunnar Gold

Decided
Disposal
DISPOSED OFF

Holding

The court held that a valid arbitration agreement existed and was duly invoked, and therefore appointed a sole arbitrator to hear the disputes.

Summary

The applicant, Shabnoor Ayub, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 seeking the appointment of an arbitrator to resolve disputes arising from partnership retirement‑admission deeds dated 9 April 2022 and 22 November 2024. The court examined the arbitration clauses in the deeds and found that a valid, subsisting arbitration agreement existed and had been duly invoked by a notice dated 14 July 2025. Consequently, the court exercised its jurisdiction to refer the matters to arbitration and appointed Mr. Tushad Kakalia as the sole arbitrator. The order also directed the parties to provide contact details, comply with statutory disclosures under Sections 11(8) and 12(1), and attend a preliminary meeting for procedural directions. All arbitration costs were initially ordered to be shared equally, subject to adjustment by the arbitral award.

Issues considered

  • Whether a valid arbitration agreement exists between the parties under the partnership deeds.
  • Whether the arbitration agreement has been properly invoked, thereby attracting the jurisdiction of Section 11 of the Arbitration and Conciliation Act, 1996.
  • Whether the court may appoint a sole arbitrator to adjudicate the disputes.

Legislation cited

Subjects

  • Arbitration
  • Section 11
  • Arbitration agreement
  • Appointment of arbitrator
  • Partnership dispute
  • Commercial division

Judgment

                                                                             38-carap-316-2026.doc


                      Shabnoor
                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   ORDINARY ORIGINAL CIVIL JURISDICTION
                                        IN ITS COMMERCIAL DIVISION

SHABNOOR                      COMM ARBITRATION APPLICATION NO.316 OF 2026
AYUB
PATHAN
Digitally signed by
SHABNOOR AYUB
                      Hemendra Hiralal Jain                         … Applicant
PATHAN
Date: 2026.09.17
                                V/s.
16:41:25 +0530
                      Hunnar Gold                                   … Respondent

                      Mr. P. Ranjan a/w Mr. Santosh Salekar i/b Halai & Co.,
                      for the Applicant.


                                                  CORAM      : AMIT BORKAR, J.

                                                  DATED      : SEPTEMBER 17, 2026
                      P.C.:
                      1.      The present Application has been filed under Section 11 of
                      the Arbitration and Conciliation Act, 1996 (“the Act”), seeking the
                      appointment of an Arbitrator for adjudication of the disputes and
                      differences stated to have arisen between the parties under the
                      Agreements of Deed of Retirement-cum-Admission of Partnership
                      dated 9 April 2022 and 22 November 2024. The arbitration
                      agreement between the parties is contained in Clauses 14 and 25
                      of the said Agreements, copies whereof are placed at pages 38 and
                      58 of the Application. In the interest of brevity, the said arbitration
                      clauses are not reproduced herein. It would suffice to observe that
                      the present Application falls within the jurisdiction of this Court.

                      2.      The record indicates that the Applicant invoked the
                      arbitration agreement by issuing a notice dated 14 July 2025.




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                                                     38-carap-316-2026.doc


3.    Upon perusal of the material placed on record, it is evident
that the arbitration agreement has been duly invoked by the
Applicant.

4.    This Court is satisfied that a valid and subsisting arbitration
agreement exists between the parties and that the said agreement
has been duly invoked. It would, therefore, be appropriate to refer
the disputes and differences arising out of or in connection with
the aforesaid Agreements of Deed of Retirement-cum-Admission of
Partnership dated 9 April 2022 and 22 November 2024 to
arbitration before a Sole Arbitrator.

5.    In the aforesaid circumstances, the present Application under
Section 11 of the Act, is deserved to be disposed of in terms of the
following order:

      A)     Mr. Tushad Kakalia Advocate of this court, 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 Agreement referred to above;
      Office Address:- Aban House, 25-31, 6th Floor, Kakushroo
      Dubash Marg, Kala Ghoda, Fort, Mumbai – 400001

      Cell No. 9833212724

      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;



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                                               38-carap-316-2026.doc


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
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 may be
indicated by the Learned Sole Arbitrator, for obtaining
appropriate directions with regard to the conduct of the
arbitral proceedings, including fixing the schedule for
filing of pleadings, examination of witnesses, if any, and
dates of hearing. At such meeting, the parties shall
furnish to the Arbitral Tribunal valid and functional
email addresses, together with the mobile and landline
telephone numbers of their respective Advocates.
Communications sent to the said email addresses shall
constitute valid service of correspondence in connection
with the arbitral proceedings.



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                                                        38-carap-316-2026.doc


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

6.    The Learned Sole Arbitrator shall be at liberty to adjudicate
upon the claims and counterclaims, if any, and to determine all
questions relating to merits, in accordance with law.

7.    All actions required to be taken pursuant to this order shall
be taken upon receipt of a downloaded copy as available on this
Court’s website.

                                               (AMIT BORKAR, J.)




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