* IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 24.02.2026 + ARB.P. 2118/2025 & I.A. 32259/2025 (For Delay 18 days in re-filing the petition)

KOTAK MAHINDRA PRIME LTD .....Petitioner Through: Mr. Amit Kumar Sinha and Mr.

Aditya Prasad, Advocates.

versus SUMIT SAWHNEY .....Respondent Through: Mr. Shashi Kant Upadhyay and Mr. Santosh Kumar, Advocates.

CORAM:

HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR % JUDGEMENT (ORAL)

HARISH VAIDYANATHAN SHANKAR, J.

1. The present Petition, filed under Section 11(5) of the Arbitration and Conciliation Act, 1996, $~11, seeks appointment of a Sole Arbitrator for the purpose of resolution of disputes that are stated to have arisen inter se the parties arising out of the Clause 32 of Car Finance Agreement dated 24.01.2024, Car Finance Agreement and Clause 27 of Personal Loan Agreement dated 30.01.2025, Personal Loan Agrement, which read as follows:

“CAR FINANCE AGREEMENT

32. Arbitration:

All disputes, differences and / or claim arising out of these presents or in any way touching or concerning the same or as to Personal Loan Agreement constructions, meaning or effect hereof or as to the rights and

1 Act

liabilities of the parties hereunder shall be settled by arbitration to be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the arbitration of a sole arbitrator to be nominated by the LENDER. In the event of death, refusal, neglect, inability or incapability of a person so appointed to act as an arbitrator, the LENDER may appoint a new arbitrator. The award of the arbitrator shall be final and binding on all parties concerned. The arbitration proceedings ahll be conducted in English language and held at the place more particularly mentioned in the SCHEDULE-I of the present agreement hereunder.

*******

PERSONAL LOAN AGREEMENT

27. Arbitration:

All disputes, differences and / or claim arising out of these presents or in any way touching or concerning the same or as to Personal Loan Agreement constructions, meaning or effect hereof or as to the rights and liabilities of the parties hereunder shall be settled by arbitration to be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the arbitration of a sole arbitrator to be nominated by the Lender. In the event of death, refusal, neglect, inability or incapability of a person so appointed to act as an arbitrator, the Lender may appoint a new arbitrator. The award of the arbitrator shall be final and binding on all parties concerned. The arbitration proceedings ahll be conducted in English language and held at the place more particularly mentioned in the SCHEDULE-I of the present agreement hereunder.”

2. Learned counsel for the Petitioner invites the attention of this Court to Clause 27 read with Schedule I of the Personal Loan Agreement to submit that this Court has jurisdiction. He further places reliance on Clause 32 of the Car Finance Agreement, read with Schedule I thereof, to contend that the place of arbitration is Delhi and, consequently, this Court is vested with the jurisdiction to appoint a Sole Arbitrator.

3. Mr. Shashi Kant Upadhyay, learned counsel appearing on behalf of the Respondent, submits that he has no objection to the matter being referred to arbitration.

4. Learned counsel for the Petitioner submits that the Personal Loan Agreement is in the nature of a top up to the Car Finance Agreement, and therefore, the disputes raised herein, in respect of the two agreements can be dealt with in a composite manner.

5. It is apposite to note that the legal position governing the scope and standard of judicial scrutiny under Section 11(6) of the Act is no longer res integra. A three-Judge Bench of the Hon’ble Supreme Court in SBI General Insurance Co. Ltd. v. Krish Spinning, (2024) 12 SCC 1, after taking into consideration the authoritative pronouncement of the