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DELHI HIGH COURT
MUKTA GUPTA
Hero Moto Corp. Ltd. – Appellant
Versus
Upper India Trading Co. (Delhi) Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. petition for appointment of sole arbitrator under arbitration agreement. (Para 1 , 2) |
| 2. respondents' arguments against arbitration notice and claims. (Para 3 , 4 , 5) |
| 3. existence and interpretation of arbitration agreement. (Para 6 , 7 , 8 , 9) |
| 4. court's limited jurisdiction at reference stage and issue of liability. (Para 10 , 11 , 12) |
| 5. appointment of sole arbitrator and final directives. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19) |
JUDGMENT
Mukta Gupta, J. By this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (in short, the Act), petitioner seeks appointment of a Sole Arbitrator in terms of Clause 23.16 of the Dealership Agreement dated 15th February 2018.
2. According to the petitioner, the petitioner is a manufacturer of two-wheelers/spares and entered into a dealership arrangement with respondent No. 1 which sells two wheelers on retail basis and services the same, vide agreement dated 17th February 2003. The said authorized dealership agreement was renewed on 15th February 2018. The respondent Nos. 2 and 3 being the Directors of respondent No. 1 stood as guarantors to the dealership arrangement vide the Guarantee Deeds dated 31st D
The court upheld the validity of the arbitration clause in the dealership agreement and clarified that disputes regarding guarantor liabilities must be resolved by arbitration, not by the court.
The Court's review of the arbitration agreement was limited to a prima facie standard, and the issue of the respondents' liability was held to be within the arbitrator's jurisdiction.
The main legal point established in the judgment is the court's authority to appoint an independent arbitrator based on the terms of the Dealership Agreement and the arbitration clause contained in i....
The main legal point established in the judgment is the arbitrability of disputes arising from a dealership agreement and the nature of relief that can be granted in arbitration, as governed by the A....
The court confirmed party autonomy in arbitration appointments, allowing for a sole arbitrator despite an initial agreement for a three-arbitrator panel.
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