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Shekhar Raju Mudliar and Anr. vs. Sammaan Capital Ltd

Arbitration Petition · 2026:DHC:8829Decided 6 Oct 2026New Delhi Bench
ARB.P. 1488/2026CNR: DLHC010387662026
Justice Om Prakash Shukla

Background

The petitioners had filed a Section 11 petition seeking appointment of an arbitrator against the respondent (a capital/lending company). At the hearing, their counsel sought leave to withdraw the petition with liberty to refile after first formally invoking arbitration under Section 21 of the Arbitration and Conciliation Act, 1996.

Decision Breakdown

The Court granted the request, dismissing the petition as withdrawn with liberty to file afresh once the Section 21 notice requirement was complied with.

Lesson Learnt

Before approaching a court for appointment of an arbitrator, a party must first properly invoke arbitration by issuing a Section 21 notice, skipping this procedural step can send even a genuine dispute back to square one.

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