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Delhivery Limited vs. Divine Pharma

Arbitration Petition · 2026:DHC:8330Decided 24 Sept 2026New Delhi Bench
ARB.P. 1143/2026CNR: DLHC010302582026
Justice Manoj Jain

Background

Delhivery Limited, a courier and logistics company, had a Delivery Services Agreement with Divine Pharma. When Divine Pharma allegedly did not pay for services rendered, Delhivery invoked the arbitration clause in the agreement, but Divine Pharma denied liability, claiming several shipments were lost, short-delivered, or damaged due to Delhivery's negligence.

Decision Breakdown

Since the respondent did not appear despite being duly served, and the agreement's arbitration clause required disputes to go to a sole arbitrator seated in New Delhi, the Court allowed the petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 and appointed a named advocate as sole arbitrator to decide the dispute, leaving all rights and contentions of both sides open for the arbitrator to decide.

Lesson Learnt

Where a commercial contract has a clear arbitration clause and a party fails to pay agreed dues, courts will readily refer the dispute to arbitration under Section 11 without examining the merits, leaving factual disputes (like alleged damaged deliveries) for the arbitrator to resolve.

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