The Court's decision was influenced by the narrow interpretation of Section 11(6A) of The Arbitration and Conciliation Act, 1996, as discussed in the Mayavati Trading case law and Duro Felguera principle.

ORDER :

Captioned 'Arbitration Original Petition' [hereinafter 'Arb. OP' for the sake of brevity and convenience] has been presented in this Court on 10.12.2021 with a prayer for appointment of a sole Arbitrator.

2. Captioned Arb. OP has been presented in this Court under Section 11 of 'The Arbitration and Conciliation Act, 1996 (Act No.26 of 1996)' [hereinafter 'A and C Act' for the sake of convenience and clarity].

3. On 21.01.2022, Hon'ble predecessor Judge issued notice to the two respondents, both respondents have since been duly served and they have entered appearance through one set of counsel.

4. Mr. D. Pradeep Kumar, learned counsel on record for sole petitioner and Mr. N. Krishna Kumar, learned counsel on record for both respondents are before this Court.

5. Captioned Arb. OP is predicated on a 'loan agreement dated 22.12.2017 bearing contract Nos. 20136579 & 20136580' [hereinafter 'primary contract' for the sake of convenience and clarity].

6. This Court is informed that two vehicles were financed by the petitioner under primary contract. The petitioner submits that there is default in repayment but this is disputed by the respondents. To be noted, this is the crux and gravamen of arbitrable disputes.

7. Be that as it may, the petitioner triggered the arbitration clause in the primary contract earlier. To be noted, the arbitration clause in the primary contract is clause 85 and the same reads as follows :

'85. Dispute Resolution :

All claims and disputes arising under or relating to this Loan Agreement are to be settled by binding arbitration in the state of Tamil Nadu, specifically Chennai or another location desired by the Lender. The arbitration shall be conducted on a confidential basis and shall be subject to the Arbitration and Conciliation Act, 1996 of India. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys' fees. Any such arbitration shall be conducted by single Arbitrator appointed by the Lender. The arbitration proceeds shall include a written record of the arbitration hearing. The parties reserve the right to object to any individual who shall be employed by or affiliated with a competing organization or entity. An award of arbitration may be confirmed in a Court of competent jurisdiction.'

8. Aforementioned clause 85 of primary contract serves as an Arbitration Agreement between the petitioner and respondents i.e., 'Arbitration Agreement' within the meaning of Section 2(1)(b) read with Section 7 of A and C Act.

9. However, the first respondent took out an application under Section 16 of A and C Act before Arbitrator who was nominated by the petitioner vide a petition dated 25.12.2020 and the learned sole Arbitrator in and by proceedings dated 23.04.2021 recused himself owing to a Section 16 plea made by the first respondent. This necessitated presentation of captioned Arb. OP in this Court on 10.12.2021 is learned petitioner counsel's say.

10. Learned counsel for both respondents submits that there are serious disputations and contestations regarding the claim that has been made by the petitioner. This Court does not express any view or opinion on the merits of the matter as the same will have to be decided by the Arbitrator. This is more so as the captioned Arb. OP is a Section 11 legal drill.

11. The scope of a legal drill under Section 11 of A and C Act is circumscribed by sub-section (6A) thereat which reads as follows :

'(6A) The Supreme Court or, as the case may be, the High Court, while considering any application under sub-section (4) or sub-section (5) or sub-section (6), shall, notwithstanding any judgment, decree or order of any Court, confine to the examination of the existence of an arbitration agreement.'

12. The aforementioned sub-section (6A) of Section 11 of A and C Act came up for consideration before Hon'ble Supreme