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Poonam Dua vs. Bimla Arora

Arbitration Petition · 2026:DHC:7952Decided 10 Sept 2026New Delhi Bench
ARB.P. 1252/2026CNR: DLHC010334492026
Justice Om Prakash Shukla

Background

The petitioner and respondent had entered into an agreement to sell and purchase a property in Tilak Nagar, New Delhi, dated 25.08.2025. A dispute arose out of the agreement, and the petitioner sought to invoke the arbitration clause contained in the agreement (Clause 19) to resolve the dispute, claiming Rs. 60 lakhs paid towards the Rs. 2.80 crore purchase price.

Decision Breakdown

Since neither party disputed the existence of a valid arbitration clause, and the respondent's counsel raised no objection to referring the dispute to arbitration, the Court found no impediment to appointing an arbitrator under its limited Section 11 jurisdiction (confined to examining the prima facie existence of a valid arbitration agreement). The Court appointed a named Sole Arbitrator under the aegis of the Delhi International Arbitration Centre, directing the arbitrator to enter reference within three weeks and make requisite disclosures, while clarifying that all issues including arbitrability and jurisdiction remain open for the arbitrator to decide independently.

Lesson Learnt

When a contract contains a clear arbitration clause and neither party disputes it, courts will readily appoint an arbitrator without delving into the merits of the underlying dispute: those substantive issues are left entirely to the arbitrator.

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