Sunstone Education Technology Pvt. Ltd. (now Elevate Education Technology Pvt. Ltd.) vs. Atlastdeal International College Pvt. Ltd.
Background
A dispute arose under a 2021 Memorandum of Understanding between an education-technology company and a college, which contained a clause requiring unresolved disputes to go to an arbitrator mutually appointed by the parties. The petitioner approached the High Court to have an arbitrator appointed after the respondent did not engage; no one appeared for the respondent at the hearing either.
Decision Breakdown
Reiterating that its role at this stage is limited to confirming the prima facie existence of a valid arbitration clause, and finding no dispute about that, the Court appointed a named advocate as sole arbitrator to be administered under the Delhi International Arbitration Centre (DIAC), leaving all substantive objections for the arbitrator to decide.
Lesson Learnt
Business agreements (including MOUs, not just formal contracts) with an arbitration clause can be enforced quickly through the courts to get an arbitrator appointed when one party stonewalls, without needing to first litigate the underlying dispute.