Case Summary: Arbitration Appointment in a Service Dispute | Treasure Vase Ventures vs. Brown Bird Enterprises

July 7, 2025
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In a recent decision, the Delhi High Court adjudicated a petition concerning a contractual dispute between two private companies. The case was brought under Section 11(6) of the Arbitration & Conciliation Act, 1996, seeking the court’s intervention for the appointment of an arbitrator due to a disagreement between the parties.

Background

The dispute arose out of a service agreement executed in February 2020, under which one party provided electric vehicles (E-vehicles) for last-mile delivery services. The agreement was effective from March 2020 to February 2021.

During the course of the contract, issues emerged related to non-payment of service fees from mid-2020 onward. Legal notices were issued demanding payment of dues along with applicable interest. Although the outstanding amounts were acknowledged, the dispute remained unresolved.

Since the agreement contained an arbitration clause, the initiating party formally requested arbitration and proposed a name for the arbitrator. However, no mutual agreement on the arbitrator’s identity could be reached, prompting the petition before the High Court.

Court’s Findings and Decision

The Court reviewed the following:

  • The existence of a valid arbitration clause.
  • The presence of unresolved, arbitrable disputes.
  • The absence of objection to arbitration as a mode of resolution.

In light of these findings, the Court exercised its powers under Section 11(6) and appointed Advocate Madhumita Bhattacharjee, a respected legal professional and Managing Partner at Lexcuria Lawyers, as the Sole Arbitrator to conduct proceedings under the supervision of the Delhi International Arbitration Centre (DIAC).

This appointment is subject to the arbitrator’s formal declaration of impartiality and eligibility under the Arbitration Act.

Significance

This judgment reaffirms the value of arbitration clauses in commercial agreements. When properly invoked, they allow parties to avoid prolonged litigation and resolve disputes through a structured and neutral process. The Court’s role in ensuring fair appointment of arbitrators further strengthens confidence in alternative dispute resolution (ADR) mechanisms.