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Bombay High Court

IIFL FINANCE LIMITEDversusBhau Lath And Engineering Workshop

Decided
Disposal
DISPOSED OFF

Holding

The Court held that a valid arbitration agreement exists and duly appointed a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Summary

IIFL Finance Ltd filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 seeking the appointment of an arbitrator to resolve disputes arising from an agreement dated 25 July 2024. The applicant invoked the arbitration clause by issuing a notice on 27 March 2026. The Court examined the record and found that a valid and subsisting arbitration agreement existed between the parties. Consequently, the Court appointed Ms. Deepali A. Bagla as the sole arbitrator and issued procedural directions for the conduct of the arbitral proceedings, including disclosure requirements and cost allocation. The application was disposed of, and the parties were directed to appear before the arbitrator as scheduled.

Issues considered

  • Whether a valid arbitration agreement subsists between the parties under the 2024 Agreement.
  • Whether the applicant's Section 11 application for appointment of an arbitrator is maintainable.
  • Whether the Court can appoint a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

Legislation cited

Subjects

  • Arbitration
  • Section 11
  • Appointment of Arbitrator
  • Commercial Arbitration
  • Arbitration Agreement
  • Cost Allocation
  • Disclosure

Judgment

                                                                              31-carap557-2026.doc


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

                           COMM ARBITRATION APPLICATION NO.557 OF 2026

                   IIFL Finance Limited                          … Applicant
                              V/s.
                   Bhau Lath and Engineering Workshop
                   & Another                                     … Respondents

                   Ms. Priya Nigwekar i/by Ms. Pallavi Chari for the
ATUL
                   Applicant.
GANESH
KULKARNI

Digitally signed                               CORAM       : AMIT BORKAR, J.
by ATUL
GANESH
KULKARNI
Date: 2026.10.07
16:43:48 +0530
                                               DATED       : OCTOBER 7, 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 an
                   Agreement dated 25 July 2024. The arbitration agreement
                   between the parties is contained in Clause 26 of the said
                   Agreement, a copy whereof is placed at page 38 of the Application.
                   In the interest of brevity, the said arbitration clause is 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 27 March 2026, a
                   copy of which is at pages 44 to 46 of the Application.




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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 Agreement dated 25 July 2024 to the 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)     Ms. Deepali A Bagla, 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 and in connection with the Agreement referred to above;
      Office Address:- Sukhia Building, 2nd Floor, Cawasji Patel
      Street, Fort, Mumbai 400001;

      Email Id:- [email protected];

      Mobile No. 9920378770.

      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




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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 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.

E)      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.




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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.

8.    The Commercial Arbitration Application stands disposed of
in above terms.

                                            (AMIT BORKAR, J.)




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