M/S TATA CAPITAL LTO v. SHIVAM CONTRACTOR AND ANR

ARB.P. 1356/2026 Page 1 of 6

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* IN THE HIGH COURT OF DELHI AT NEW DELHI # CNR No. DLHC010359602026 + ARB.P. 1356/2026 M/S TATA CAPITAL LTD .....Petitioner Through: Mr. Sunil Sehrawat, Advocate.

versus

SHIVAM CONTRACTOR AND ANR .....Respondents Through: None.

CORAM:

HON'BLE MR. JUSTICE OM PRAKASH SHUKLA

JUDGMENT(ORAL)

% 09.10.2026

1. The present petition is filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator for adjudication of the disp utes arising out of the loan agreement dated 9.12.2022.

2. As per the Petitioner, the Respondent defaulted in repayment of the loan instalments despite repeated reminders. Accordingly, the loan facility was recalled vide notice dated 28.05.2026. The Petition er claims that a sum of Rs. 7,64,698/- was outstanding as on 14.07.2026.

3. On the 7.08.2026, notice was issued to the Respondents and the Respondents were asked to file reply to the present petition. However, the same has not been filed.

4. On a perusal of the affidavit of service, it appears that the notice has been duly served on the Respondents. Despite the opportunity so granted, none appears on behalf of the Respondents.

5. In view thereof and considering that despite sufficient service,

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the Respondents ha ve chosen not to participate in the present proceedings, this Court finds no impediment in proceeding to consider the appointment of a Sole Arbitrator.

6. The tracking details placed on record establishes that both the Respondents have been duly served. The proof of service, as is reflected from the tracking details, is annexed to the petition and is reproduced hereinbelow:

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7. Clause 13 of the Loan Agreement contains an arbitration clause and the same is reproduced hereinbelow:

13. Arbitration

If any dispute, difference or claim arises between any of the Obligors and the Lender in connection with the Facility or as to the interpretation, validity, implementation or effect of the Facility Documents or as to the rights and liabilities of the parties unde r these T&Cs or alleged breach of the Facility Documents or anything done or omitted to be done pursuant to the Facility Documents, the same shall be settled by arbitration by a sole arbitration to be appointed as per the procedure below and to be held at such place as agreed by the Parties in Serial No.13(a) of Annexure 1 hereto of the Agreement. The Party invoking the arbitration ("Claimant") shall address a notice to the other Party ("Respondent") suggesting the names of not more than three arbitrators, all of whom shall be either retired judges of the District Court, High Court or the Supreme Court or a lawyer having minimum 10 years' relevant experience.

The Respondent shall either:

(i) Confirm in writing acceptance of one amongst the proposed names as the sole arbitrator to the Claimant within a period of ten (10) days from the date of notice ("Notice Period"); or (ii) Convey objection, if any, in writing to the Claimant, against the proposed names of the sole arbitrator within the said Notice Period.

However, if the Claimant does not receive any response from the Respondent within the said Notice Period, the Claimant shall be entitled to nominate any one person from amongst the

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proposed three names as the sole arbitrator and such arbitrator shall be dee med to be appointed by both the Parties. In the event, the Respondent conveys its objection as per (ii) above, then the appointment of the sole arbitrator shall be referred to the Council for National and International Commercial Arbitration (CNICA)

and the arbitrator shall be appointed by them from their panel of arbitrators.

The arbitration shall be conducted under the provisions of the Arbitration and Conciliation Act, 1996 together with its amendments, any statutory modifications or re -enactment thereof for the time being in force. The arbitration proceeding shall be conducted in English language. The award of the arbitrator shall be final and binding on all parties concerned. The cost of arbitration shall be borne by the Obligor/s.

8. It is well settled that, while exercising jurisdiction under Section 11 of the Act, the scope of enquiry is confined to examining the prima facie existence of an arbitration agreement1.

9. In the present case, there is no dispute with regard to the existence of a valid arbitration clause between the parties.

10. In the aforesaid circumstances , this Court finds no impediment in appointing a Sole Arbitrator.

11. Accordingly, Mr. Sameer Sharma, Advocate, (Mob. No.

9213857759) is appointed as a learned Sole Arbitrator to adjudicate the disputes arisen between the parties. The learned Sole Arbitrator shall enter upon the reference within three weeks from today.

12. The learned Sole Arbitrator will proceed to the arbitration

1 SBI General Insurance Co. Ltd. v. Krish Spinning 2024 SCC OnLine SC 1754

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proceedings subject to furnishing requisite disclosures as required under Section 12(2) of the Arbitration and Conciliation Act, 1996 2 within three weeks of entering reference.

13. The arbitration shall be carried under the rules and aegis of Delhi International Arbitration Centre (“DIAC”) . The learned Arbitrator shall be en titled to fees as per the Schedule of Fees maintained by the DIAC.

14. It shall be open to the parties to raise all pleas, including objection as to arbitrability and jurisdiction, before the learned Sole Arbitrator who shall decide the same in accordance with law.

15. It is clarified that the observations made herein are only for the purpose of deciding the present petition under Section 11(6) of the Act. The learned Sole Arbitrator shall adjudicate the disputes independently and on their own merits, uninfluence d by any observations contained in the present order.

16. The Registry is directed to send a receipt of this order to Mr.

Sameer Sharma, learned Arbitrator through all permissible modes including email.

17. Accordingly, the present petition is disposed of in the above terms.

OM PRAKASH SHUKLA, J

OCTOBER 9, 2026/pa

2 “Act” hereinafter