Hero Motocorp Ltd vs. Petal Automotion and Ors
Background
Hero Motocorp sought appointment of a sole arbitrator under Section 11(6) of the Arbitration Act, invoking the arbitration clause in its Authorised Dealer Agreement with the respondent dated December 2019, over a claim of approximately Rs. 1.7 crores.
Decision Breakdown
Both parties agreed there was a valid arbitration agreement and were willing to proceed to arbitration. The Court appointed a sole arbitrator to adjudicate the dispute under the rules of the Delhi International Arbitration Centre, leaving all substantive pleas (including jurisdiction) to be decided by the arbitrator.
Lesson Learnt
Where both sides agree an arbitration clause exists and simply need an arbitrator appointed, the High Court's role at this stage is purely administrative: it does not examine the merits of the underlying commercial dispute.