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Orix Leasing and Financial Services India Ltd vs. Loconav India Private Limited

Arbitration Petition · 2026:DHC:8171Decided 16 Sept 2026New Delhi Bench
ARB.P. 1144/2026CNR: DLHC010301832026
Justice Om Prakash Shukla

Background

The petitioner sought appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, to resolve a commercial dispute with the respondent, both sides agreeing an arbitration clause existed between them.

Decision Breakdown

Both parties agreed to first attempt an amicable settlement, so the Court referred the matter to the Delhi High Court's Mediation and Conciliation Centre (SAMADHAN), giving six weeks to explore settlement. At the same time, anticipating mediation might fail, the Court went ahead and appointed a sole arbitrator to take up the reference if no settlement is reached within that period, so that the parties would not need to return to court for a second round.

Lesson Learnt

Courts increasingly encourage mediation even in commercial arbitration disputes, but will pre-appoint an arbitrator in the same order so that the dispute can move straight to arbitration without delay if settlement talks do not succeed.

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