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Bombay High Court

RD TradersversusTapi Processors Private Limited

Decided
Disposal
DISPOSED OFF

Holding

The Court held that a valid arbitration agreement subsists and therefore appointed Lizum C. Wangdi as the sole arbitrator to adjudicate the disputes.

Summary

The applicant, RD Traders, filed an arbitration application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking a sole arbitrator for disputes arising from tax invoices, delivery challans and an account confirmation statement dated between August and September 2024. The applicant had invoked the arbitration clause contained in those documents by issuing a notice on 24 February 2026. The High Court examined the records and concluded that a valid and subsisting arbitration agreement existed between the parties and that it had been properly invoked. Consequently, the Court exercised its power under Section 11 to appoint Ms. Lizum C. Wangdi as the sole arbitrator and issued procedural directions regarding disclosure statements, communication details and cost allocation. The Court expressly left all questions of merit, including any limitation issues, to be decided by the appointed arbitrator. The order was communicated as a final disposition of the arbitration application.

Issues considered

  • Whether a valid arbitration agreement exists between RD Traders and Tapi Processors Private Limited.
  • Whether the High Court has jurisdiction to appoint a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.
  • What procedural steps must be followed after the appointment of the sole arbitrator?

Legislation cited

Subjects

  • Arbitration
  • Section 11
  • Sole Arbitrator
  • Arbitration Agreement
  • Commercial Dispute
  • Tax Invoices
  • Delivery Challans
  • Cost Allocation

Judgment

                                                                           22-carap-404-2026.doc


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

                              COMM ARBITRATION APPLICATION NO.404 OF 2026

         Digitally
                      RD Traders                                    … Applicant
         signed by
         SHABNOOR
SHABNOOR AYUB
         PATHAN
                                 V/s.
AYUB
PATHAN   Date:
         2026.09.23
         18:31:35
                      Tapi Processors Private Limited               … Respondent
         +0530




                      M r. Piyush Raheja, Mr. Feroze Patel a/w Ms. Hemah
                      Dhande i/b RVJ Associates, for the Applicant.


                                                  CORAM        : AMIT BORKAR, J.

                                                  DATED        : SEPTEMBER 23, 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 a Sole Arbitrator for adjudication of the disputes
                      and differences stated to have arisen between the parties in
                      relation to the Tax Invoices issued between 26 August 2024 and 28
                      September 2024, the Delivery Challans and the Account
                      Confirmation Statement. The arbitration agreement between the
                      parties is contained in the relevant clauses of the Tax Invoices,
                      Delivery     Challans,   Email    Correspondences    and      Account
                      Confirmation Statement referred to in the Application. In the
                      interest of brevity, the said arbitration clause is not reproduced
                      herein. Suffice it to observe that the present Application falls
                      within the jurisdiction of this Court.




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2.    The record indicates that the Applicant invoked the
arbitration agreement by issuing a notice dated 24 February 2026.

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 further satisfied that a valid and subsisting
arbitration agreement exists between the parties and that the same
has been duly invoked. Accordingly, the disputes and differences
arising out of or in connection with the Tax Invoices issued
between 26 August 2024 and 28 September 2024, the Delivery
Challans, and the Account Confirmation Statement are required to
be referred 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)     Lizum C. Wangdi, 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:- Office – 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




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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 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




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     correspondence in connection with the arbitral proceedings.

     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.    All questions relating to the merits of the disputes, including
the issue of limitation, are expressly kept open to be raised and
adjudicated upon before the Learned Arbitral Tribunal. 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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