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L and T Finance Limited vs. Prakash Chandra Bajpai and Ors

Original Miscellaneous Petition (Interim, Commercial) · 2026:DHC:8968Decided 9 Oct 2026New Delhi Bench
O.M.P.(I) (COMM.) 418/2026CNR: DLHC010434932026
Justice Om Prakash Shukla

Background

L and T Finance Limited filed a Section 9 petition seeking interim measures against borrowers/guarantors. A separate application by a third party seeking to be added to the case (impleadment) was withdrawn at the outset. All sides then told the Court they were in agreement that their dispute should go to arbitration before a mutually acceptable arbitrator.

Decision Breakdown

Since all parties consented, waiving the contract's formal arbitrator-appointment procedure, the Court appointed a named retired Delhi High Court judge as Sole Arbitrator, to be conducted under the Delhi International Arbitration Centre's rules and fee schedule, with the arbitrator requested to decide matters within set timelines. The petition was disposed of on these consent terms, with the arbitrator free to decide all issues, including arbitrability and jurisdiction, independently.

Lesson Learnt

When parties to a commercial dispute mutually agree on who should arbitrate their case, courts will readily step in to formally appoint that person as arbitrator, even bypassing the contract's own stated procedure, rather than insisting on a contested appointment process.

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