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Bizloan Private Limited vs. Harvinder Singh

Arbitration Petition · 2026:DHC:7708Decided 7 Sept 2026New Delhi Bench
ARB.P. 1018/2026CNR: DLHC010269922026
Justice Om Prakash Shukla

Background

The petitioner, a lending company, sought appointment of an arbitrator to recover an amount of Rs. 7,25,000/- from the respondent, relying on an arbitration clause in their agreement. Although the respondent had been served, he did not appear at the previous hearing or this one.

Decision Breakdown

Having earlier warned that it would proceed on the available record if the respondent again failed to appear, the Court noted there was no dispute about the existence of the arbitration agreement itself. Since a court's role at this referral stage is limited to confirming a valid arbitration agreement exists, the Court found no obstacle to appointing an arbitrator and did so, leaving all other issues, including any defence the respondent may wish to raise, open for the arbitrator to decide.

Lesson Learnt

A respondent who ignores arbitration-appointment proceedings does not thereby block the process: courts will proceed to appoint an arbitrator based on the prima facie existence of a valid arbitration agreement, and the respondent can still raise their substantive defences before the arbitrator later.

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