Bombay High Court
SHIV KESHRIMAL AGRAWALversusFarma Hub Overseas Private Limited
- Decided
- Disposal
- DISPOSED OFF
Holding
The court held that a valid arbitration agreement existed, it had been duly invoked, and the court possessed jurisdiction to appoint a sole arbitrator under Section 11 of the Act.
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 two Shareholders' Agreements dated February and August 2024. The applicant had invoked the arbitration clause by issuing a notice on 25 May 2026, thereby triggering the arbitration agreement contained in Clause 21 of the agreements. The court examined whether a valid and subsisting arbitration agreement existed and whether it had been properly invoked, relying on its earlier decision in Shiv Keshrimal Agrawal v. Farma Hub Overseas Private Limited. Satisfied that the arbitration agreement was enforceable and that the court had territorial jurisdiction, the judge appointed Mr. Cyrus Jal as the sole arbitrator. The order also set procedural directions for disclosure, communication, and cost allocation, and the application was disposed accordingly.
Issues considered
- What is the existence and validity of the arbitration agreement between the parties under the Shareholders' Agreements?
- Has the applicant properly invoked the arbitration clause in accordance with Section 11 of the Arbitration and Conciliation Act, 1996?
- Does the High Court have territorial jurisdiction to entertain the Section 11 application for appointment of an arbitrator?
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 11, 11(8), 12(1)
Subjects
- Arbitration
- Section 11
- Arbitration Agreement
- Shareholders' Agreement
- Jurisdiction
- Appointment of Arbitrator
- Arbitration Act 1996
Judgment
22-carap-455-2026.doc
Shabnoor
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
COMM ARBITRATION APPLICATION NO.455 OF 2026
SHABNOOR Shiv Keshrimal Agrawal … Applicant
AYUB
PATHAN V/s.
Digitally signed by
SHABNOOR AYUB
Farma Hub Overseas Private Limited
PATHAN
Date: 2026.10.01
& Ors … Respondents
18:33:20 +0530
Mr. Abhishek Khare with Bindu Parekh Simran Nair i/b
Khare Legal Chambers, for the Applicant.
Mr. Omar Khaiyam Shaikh i/b Mohd F. Shaikh, for
Respondent Nos.2 and 3.
CORAM : AMIT BORKAR, J.
DATED : OCTOBER 1, 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 an Arbitrator for adjudication of the disputes and
differences stated to have arisen between the parties under the
Shareholders’ Agreements dated 15th February 2024 and 29th
August 2024. The arbitration agreement between the parties is
contained in Clause 21 of the said Agreements. Copies of the said
Agreements are placed at pages 47 and 58 of the Application. For
the sake of brevity, the arbitration clause is not reproduced herein.
Suffice it to observe that this Court has jurisdiction to entertain the
present Application under Section 11 of the Act.
2. The record shows that the Applicant invoked the arbitration
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agreement by issuing a notice dated 25th May 2026.
3. Upon consideration of the material placed on record, I am
satisfied that the Applicant has duly invoked the arbitration
agreement contained in the aforesaid Shareholders’ Agreements.
4. In view of the judgment of this Court in Shiv Keshrimal
Agrawal v. Farma Hub Overseas Private Limited (CARBP(L)
No.14011 of 2026), and particularly the observations made in
paragraphs 50 and 53 thereof, I am satisfied that, for the limited
purpose of entertaining an application under Section 11 of the Act
and considering the appointment of an Arbitrator, the territorial
jurisdiction of this Court is established.
5. Having regard to the aforesaid circumstances and the
material placed on record, this Court is satisfied that there exists a
valid and subsisting arbitration agreement between the parties and
that the said arbitration agreement has been duly invoked by the
Applicant. The disputes and differences stated to have arisen
between the parties arise out of or in connection with the
Shareholders’ Agreements dated 15th February 2024 and 29th
August 2024. The said disputes are, therefore, required to be
referred to arbitration before a Sole Arbitrator.
6. In the aforesaid circumstances, the present Application under
Section 11 of the Act is disposed of by passing the following order:
(i) Mr. Cyrus Jal, an Advocate of this Court, is hereby
appointed as the Sole Arbitrator to adjudicate upon the
disputes and differences between the parties arising out of or
in connection with the aforesaid Shareholders’ Agreements.
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Office Address: Chambers of Karl Tamboly, Office No. 3, 2nd
Floor, Brady House, 12/14, Veer Nariman Road, Fort,
Mumbai 400001.
Contact No.: 9820343038.
(ii) The Advocates for the Applicant shall communicate a
copy of this Order to the learned Sole Arbitrator within a
period of one week from today. The Applicant shall also
furnish to the learned Sole Arbitrator the contact and
communication particulars of the parties, together with a
copy of this Order.
(iii) 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 the same to be placed before the
Registry of this Court. The Registry shall retain the said
Statement of Disclosure on the file of the present
Application. A copy thereof shall be furnished by the
Advocates for the Applicant to the Advocates for the
Respondent.
(iv) The learned Sole Arbitrator is requested to furnish 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 the date of receipt of a copy of this Order.
(v) The parties shall appear before the learned Sole
Arbitrator on such date and at such place as may be fixed by
the learned Sole Arbitrator, for obtaining appropriate
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directions concerning the conduct of the arbitral
proceedings. Such directions may include fixing the schedule
for filing of pleadings, examination of witnesses, if any, and
dates of hearing. At the first 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
addressed to and sent at the said email addresses shall
constitute valid service of correspondence in connection with
the arbitral proceedings.
(vi) The costs and fees of the arbitration and the fees of the
Arbitral Tribunal shall be borne by the parties equally in the
first instance. The payment of such costs and fees shall,
however, remain subject to the final Award that may be
passed by the Arbitral Tribunal in relation to costs.
7. The learned Sole Arbitrator shall be at liberty to adjudicate
upon the claims and counterclaims, if any, raised by the parties
and shall determine all questions relating to the merits of the
disputes in accordance with law.
8. All steps and actions required to be taken pursuant to this
Order may be taken on the basis of a downloaded copy of the
Order as made available on the official website of this Court.
9. The present Application stands disposed of in the aforesaid
terms.
(AMIT BORKAR, J.)
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