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2026 Supreme(Online)(Del) 6478

IN THE HIGH COURT OF DELHI AT NEW DELHI
M/S ELAN FASHION – Appellant
Versus
M/S VINAYAK EMBROIDERY – Respondent


JUDGEMENT (ORAL)

1. The present Petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 [“Act”], seeking appointment of a Sole Arbitrator for adjudication of disputes inter se the parties arising out of the Tax Invoice No. 23-24/EL/669 dated 19.12.2023 and Tax Invoice No. 23-24/EL/680 dated 28.12.2023 [“Tax Invoices”].

2. The Tax Invoices contains a Declaration, which contemplates adjudication of disputes, arising with regard to default in payment of the outstanding amount as per the Tax Invoice, by way of Arbitration. The relevant stipulation is contained as Clause 1 of the Declaration in the Tax Invoices [“Arbitration clause”]. The same reads as follows: -

“Declaration

1. in case the payment is not made within 30 days, interest @ 18% per annum shall be charged and in case of further(sic) default, the matter shall be referred to arbitration within delhi.”

3. The material on record also reflects that the statutory requirement under Section 21 of the Act for invocation of the aforestated Arbitration clause, stands duly complied with by the Petitioner vide Legal Notice dated 27.12.2024 [“Section 21 Notice”]. It is stated that the Respondent has chosen

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