Madhusudan Namboodiri vs. Liqvid English Edge Pvt Ltd
Background
The petitioner sought appointment of an arbitrator to resolve a dispute over unpaid dues of Rs. 19,47,000 allegedly owed by the respondent company for professional services rendered under a Contract for Professional Services dated 10.03.2023, which contained an arbitration clause referring disputes to a sole arbitrator in Delhi.
Decision Breakdown
Both parties agreed the dispute should be arbitrated, and the Court confirmed the arbitration clause was valid on its face, which is all that Section 11 of the Arbitration and Conciliation Act requires it to check at this stage. The Court appointed the same named sole arbitrator to hear the dispute under the rules of the Delhi International Arbitration Centre, leaving all other issues, including jurisdiction, to be decided by the arbitrator.
Lesson Learnt
Unpaid professional-services invoices governed by a contract with an arbitration clause are resolved by getting a court to appoint an arbitrator quickly, a relatively fast, low-friction legal step compared to a full civil suit, with the actual dispute over money then argued out before that arbitrator.