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Karyan Amusement LLP vs. KU Hospitality & Anr.

Arbitration Petition · CNR No. DLHC010309532026Decided 14 Sept 2026New Delhi Bench
ARB.P. 1177/2026CNR: DLHC010309532026
Justice Om Prakash Shukla

Background

The petitioner sought appointment of a sole arbitrator to adjudicate a dispute worth roughly Rs. 4 crores with the respondents, and the respondent's counsel had no objection to arbitration. Both sides agreed there was a valid arbitration clause and that the dispute should go to arbitration.

Decision Breakdown

Applying the settled principle that a Section 11 court's enquiry is confined to examining the prima facie existence of an arbitration agreement, the Court found no impediment to appointing an arbitrator since neither party disputed the arbitration clause. It appointed Ms. Nisha Bhambhani, Advocate, as sole arbitrator under the rules of the Delhi International Arbitration Centre (DIAC), clarifying that all pleas on arbitrability and jurisdiction remained open before the arbitrator.

Lesson Learnt

When both sides agree an arbitration clause exists, a court asked to appoint an arbitrator will do so quickly without delving into the merits: those issues are left for the arbitrator to decide.

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