Arb No. 501 of 2025 · Punjab And Haryana At Chandigarh High Court · 2026

CORAM: HON'BLE MR. JUSTICE SHEEL NAGU CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE Present: Ms. Priyanka Malik, Advocate, Mr. Pradeep Sharma, Advocate, Mr. Pradeep Sharma, Advocate, for the applicant. , Advocate, for r. Harjot Singh Bedi, Advocate, Mr. Harjot Singh Bedi, Advocate, for the respondents. **** SHEEL NAGU, CHIEF JUSTICE SHEEL NAGU, CHIEF JUSTICE

1. ordinate Bench of this In view of the order passed by the Co-ordinate Bench of this In view of the order passed by the Court on 19.11.2025, this matter has come up for hearing despite the value of Court on 19.11.2025, this matter has come up for hearing despite the value of Court on 19.11.2025, this matter has come up for hearing despite the value of Court on 19.11.2025, this matter has come up for hearing despite the value of the claim being less than Rs. 15 crores. the claim being less than Rs. 15 crores.

2. Instant application u/s 11 (6) of Arbitration and Conciliation Act, Instant application u/s 11 (6) of Arbitration and Conciliation Act, Instant application u/s 11 (6) of Arbitration and Conciliation Act, 1996 (for brevity, ppointment of Arbitrator. for brevity, ‘1996 Act’), seeks appointment of Arbitrator.

3. is taken on record and Reply filed on behalf of the respondents is taken on record and Reply filed on behalf of the respondents perused.

4. The rival parties herein entered into lease agreement da The rival parties herein entered into agreement dated

06.12.2020 in respect of office premises at Savitri Complex, 1 20 (Annexure P-2) in respect of office premises at Savitri Complex, 1 in respect of office premises at Savitri Complex, 1 , containing an arbitration clause as Dholewal Chowk, G.T. Road, Ludhiana, containing an arbitration clause as , containing an arbitration clause as Dholewal Ch follows : “23.. Arbitration “2 2025 ARB-501-2025 -2-

23.1 23.1 If any dispute and/or difference arises between the If any dispute and/or difference arises between the parties hereto during the subsistence of this Deed or any parties hereto during the subsistence of this Deed or any parties hereto during the subsistence of this Deed or any renewals of the same or thereafter, renewals thereafter, in connection therewith including the validity, interpretation, implementation or including the validity, interpretation, implementation or including the validity, interpretation, implementation or alleged material breach of any provision of this Deed or alleged material breach of any provision of this Deed or alleged material breach of any provision of this Deed or regarding any question, the parties hereto shall endeavor to regarding any question, the parties hereto shall endeavor to regarding any question, the parties hereto shall endeavor to settle such dispute amicably on mutual agreement appoint a settle such dispute amicably on mutual agreement appoint a settle such dispute amicably on mutual agreement appoint a sole arbitrator in terms of provisions contained in the sole arbitrator in terms of provisions contained in the sole arbitrator in terms of provisions contained in the arbitration and conciliation Act 1996 or any subsequent law arbitration and conciliation Act 1996 or any subsequent law arbitration and conciliation Act 1996 or any subsequent law for the time being in force. for the time being in force.

23.2 23.2 The proceedings of arbitration shall be in English The proceedings of arbitration shall be in English language. language.

23.3 23.3 The provisions of this clause shall survive the The provisions of this clause shall termination of this Deed for any reason whatsoever. termination of this Deed for any reason whatsoever. termination of this Deed for any reason whatsoever.

23.4 23.4 That That the place of Arbitration shall be the place of Arbitration shall be Ludhiana.” Ludhiana.”

4.1 Dispute erupted between the parties. The applicant served notice Dispute erupted between the parties. The applicant served notice Dispute erupted between the parties. The applicant served notice dated 27.03.202 .03.2025 (Annexure P-4) upon the respondents solution of ) upon the respondents seeking resolution of dispute through arbitration, but to no avail. dispute through arbitration

5. Learned counsel for the respondents could not dispute the Learned counsel for the respondents could not dispute the Learned counsel for the respondents could not dispute the existence and execution of lease agreement existence and execution of of remedy by applicant agreement, exhaustion of remedy by applicant l parties, service of under the arbitration clause in the agreement between rival parties, service of under the arbitration clause in the agreement between riva under the arbitration clause in the agreement between riva notice, dispute between the parties being arbitrable and the cause not being a notice, dispute between the parties being arbitrable and the cause not being a notice, dispute between the parties being arbitrable and the cause not being a notice, dispute between the parties being arbitrable and the cause not being a deadwood. deadwood.

5.1 The only submission of learned counsel for the respondents is that The only submission of learned counsel for the respondents is that The only submission of learned counsel for the respondents is that claim, which is also to be considered while they have also made a counter-claim, which is also to be considered while claim, which is also to be considered while they have also made a counter deciding the claim of the applicant by the Arbitrator, if appointed. deciding the claim of the applicant by the Arbitrator, if appointed. deciding the claim of the applicant by the Arbitrator, if appointed.

6. the scope of examination u/s 11 (6) of 1996 The law regarding the scope of examination u/s 11 (6) of 1996 the scope of examination u/s 11 (6) of 1996 At the stage of considering an application for appointment Act is well settled. At the stage of considering an application for appointment At the stage of considering an application for appointment Act is well settled. 2025 ARB-501-2025 -3- limited prima facie of an Arbitrator, the Court is only required to undertake a limited prima facie of an Arbitrator, the Court is only required to undertake a of an Arbitrator, the Court is only required to undertake a as to the existence and validity of the arbitration agreement and examination as to the existence and validity of the arbitration agreement and as to the existence and validity of the arbitration agreement and examination clear that whether the disputes are manifestly arbitrable. Unless it is ex facie clear that whether the disputes are manifestly arbitrable. Unless it is whether the disputes are manifestly arbitrable. Unless it is existent, invalid, or the disputes are the arbitration agreement is non-existent, invalid, or the disputes are existent, invalid, or the disputes are the arbitration a arbitrable, the matter ought to be referred to arbitration. demonstrably non-arbitrable, the matter ought to be referred to arbitration. demonstrably non

7. The Apex Court Vidya Drolia Vs. Durga Trading in Vidya Drolia Vs. Durga Trading Vidya Drolia Vs. Durga Trading