Allahabad High Court
M/S FASHION POINT PARTNERSHIP FIRM AND ANOTHERversusRAYMOND APPAREL LTD.
- Decided
- Bench
- PIYUSH AGRAWAL
Holding
The Court held that it has jurisdiction to appoint a sole arbitrator under Section 11(6) as the parties could not agree on an arbitrator and a valid arbitration clause exists.
Summary
The partnership firm M/s Fashion Point entered into a franchise agreement with Raymond Apparel Ltd. and a nine‑year lease deed with a third party, subsequently demanding payment of the lease amount which the respondent failed to pay. The applicant invoked the arbitration clause on 18‑02‑2025, but the respondent did not respond, prompting an application under Section 11(6) of the Arbitration and Conciliation Act, 1996 for the appointment of a sole arbitrator. The High Court examined the scope of Section 11, relying on Supreme Court decisions in Mayavati Trading (2019), Duro Felguera (2017) and GOQII Technologies (2025), and held that the existence of an arbitration agreement suffices for the court to appoint an arbitrator when the parties cannot agree. The Court therefore appointed Shri Nimai Dass as the arbitrator, authorising his fees under the Fourth Schedule of the Act, and ordered that the arbitration application be allowed. The merits of the dispute are to be determined by the appointed arbitrator.
Issues considered
- Whether the High Court can appoint a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the parties fail to agree on an arbitrator.
- Whether the existence of an arbitration clause alone is sufficient to invoke Section 11(6) notwithstanding pending substantive disputes.
- Interpretation of Section 11(6A) post‑2015 amendment in the context of appointing an arbitrator.
Legislation cited
- Arbitration and Conciliation Act, 1996 — s. 11(6), 11(6A)
Subjects
- Arbitration
- Section 11
- Appointment of arbitrator
- Franchise agreement
- Lease dispute
- Arbitration clause
- Supreme Court precedent
- Indian arbitration law
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
ARBITRATION AND CONCILI. APPL.U/S11(4) No. - 9 of 2026
M/S Fashion Point Partnership Firm And Another
.....Applicant(s)
Versus
Raymond Apparel Ltd.
.....Opposite
Party(s)
Counsel for Applicant(s) : Anil Kumar Chaudhary
Counsel for Opposite Party(s) : Surya Pratap Singh, Virendra Kumar
Tiwari
Court No. - 7
HON'BLE PIYUSH AGRAWAL, J.
1. Rejoinder affidavit filed today is taken on record.
2. Heard the learned counsel for the parties.
3. The instant application has been preferred under Section 11(6) of the
Arbitration & Conciliation Act, 1996 for appointment of a sole Arbitrator.
4. Learned counsel for the applicant submits that the applicant being a
registered partnership firm, had taken franchise from the opposite party,
for which a franchise agreement was executed on 05.05.2018. He further
submits that as per the agreement, a lease deed dated 13.06.2018 was
executed by the applicant for a period of 9 years with one M/s ASJ
Developers for running the business. Thereafter, the applicants asked for
payment of the entire amount of lease from the opposite party, but the
same has not been paid to the applicant. Thereafter, on 18.02.2025, a
notice/letter was issued to the respondent invoking the arbitration clause;
however, the respondent failed to respond to the same. Hence, this
application.
5. Learned counsel for the opposite party does not dispute the fact about
the existence of dispute between the parties.
6. Having heard learned counsel for the parties, the scope of the present
proceedings under Section 11 of the Act does not require any elaboration
in view of that position in law having been made crystal clear by a recent
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three judge decision of the Supreme Court in the case of M/S Mayavati
Trading Pvt. Ltd. Vs. Pradyuat Deb Burman, Civil Appeal No. 7023 of
2019, decided on 05.09.2019 in which it has been held as below:
"This being the position, it is clear that the law prior to the 2015
Amendment that has been laid down by this Court, which would have
included going into whether accord and satisfaction has taken place, has
now been legislatively overruled. This being the position, it is difficult to
agree with the reasoning contained in the aforesaid judgment as Section
11(6A) is confined to the examination of the existence of an arbitration
agreement and is to be understood in the narrow sense as has been laid
down in the judgment Duro Felguera, S.A. (supra) -- see paras 48 & 59."
7. While laying down that law, the Supreme Court had itself referred to
paragraph nos. 48 & 59 of its earlier decision in the case of Duro
Felguera, S.A. Vs. Gangavaram Port Ltd., (2017) 9 SCC 729.
8. That position in law has been reiterated in a recent decision of the
Supreme Court in GOQII Technologies Pvt. Ltd. Vs. Sokrati
Technologies Pvt. Ltd., (2025) 2 SCC 192.
9. In the facts of the present case, on prima facie basis, it has to be
accepted that there exists an arbitration clause, between the parties. Also,
it is clear that the parties have not been able to appoint consented
arbitrator and therefore, the appointing authority has to be assumed by
this Court upon the present application.
10. At the same time, no final conclusion is being drawn as may affect the
merits of the claim. That matter would remain to be considered by the
appropriate forum at the appropriate stage, upon claim, objection,
challenge or appeal being filed. Thus, amongst others it would remain
open to the opposite party to raise all objections as the Act permits.
11. Leaving that course completely open to the respective parties, at
present, only a forum is being provided for adjudication of a claim
proposed to be raised and resisted, in accordance with the law.
12. With the consent of the parties, this Court appoints Shri Nimai Dass,
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learned Advocate, resident of 43, Tagore Town, City & District -
Prayagraj (UP), Mobile No. 9335107269 (e-mail ID
[email protected]), who is present in the Court and has given his
consent, to act as an Arbitrator for resolving the disputes between the
parties.
13. The Arbitrator shall be entitled to his fees and expenses in accordance
with the fourth Schedule to the Arbitration & Conciliation Act, 1996.
14. In view of the above, the present arbitration application stands
allowed.
15. Office to intimate this order to the Arbitrator.
(Piyush Agrawal,J.)
May 7, 2026
Amit Mishra
Digitally signed by :-
AMIT KUMAR MISHRA
High Court of Judicature at Allahabad
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