M/S DAMAK ENTERPRISES v. AFORMIT INDUSTRIES PVT. LTD AND ORS
ARB.P./1944/2024 · 2026-07-23
Avneesh Jhingan
body1944
DailyLaw.ai
[ 1944 DAILYLAW 4 (DEL) · dailylaw.ai ]
DailyLaw.ai
[ 1944 DAILYLAW 4 (DEL) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
$~1 & 2 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ARB.P. 1944/2024, I.A. 47259/2024, I.A. 47260/2024& I.A. 19230/2026
M/S DAMAK ENTERPRISES
.....Petitioner Through: Mr. Abhishek Dev, Mr. Ashish Vaid, Mr. Rishabh Sharma, Mr. Niranjan Kaur, Mr. Piyush Pal & Mr. Ashwin Singh, Advs.
versus
AFORMIT INDUSTRIES PVT. LTD AND ORS .....Respondents Through: Mr. Rakesh Kumar & Mr. Dip Narayan Jha, Advs.
+ O.M.P.(I) 13/2024 & I.A. 47138/2024
M/S DAMAK ENTERPRISES
.....Petitioner Through: Mr. Abhishek Dev, Mr. Ashish Vaid, Mr. Rishabh Sharma, Mr. Niranjan Kaur, Mr. Piyush Pal & Mr. Ashwin Singh, Advs.
versus
AFORMIT INDUSTRIES PVT. LID.AND ORS .....Respondents Through: Mr. Rakesh Kumar & Mr. Dip Narayan Jha, Advs.
CORAM:
HON'BLE MR. JUSTICE AVNEESH JHINGAN
O R D E R %
23.07.2026
1. The present petition is filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) for appointment of an arbitrator.
2. The brief facts are that the petitioner is a proprietorship concern engaged in the business of manufacturing and marketing cosmetic products. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 14:19:14
Respondent no.1 is a company engaged in providing sales, marketing and promotional services and respondent Nos.2 to 5 are its directors. The parties entered into a Memorandum of Understanding dated 19.02.2024 (for short ‘MOU’) whereby the respondents were appointed as the sales and promotion partner for the products of the petitioner under a combo box model. The petitioner agreed to pay Rs. 4,70,000/- per month and 50% of the market price of the products to the respondents. The respondents undertook to purchase the remaining inventory in the event of failure to achieve the agreed sales target. Clause 12.4 of the MOU provided for resolution of disputes through arbitration. 2.1 Disputes arose between the parties in year 2024 regarding the non- achievement of the initial sales target of 10,000 boxes and non-performance of contractual obligations. The petitioner invoked arbitration by issuing a notice dated 09.10.2024 under Section 21 of the Act. Upon failure of the contractual mechanism for constitution of the arbitral tribunal, the present petition has been filed.
3.
Learned counsel for the respondents on instructions has no objection for referring the matter to arbitration.
4. Accordingly, the petition is allowed by appointing Justice Ms. Jaishree Thakur (Retd.) (Mobile No.08558809950) as the sole arbitrator for adjudication of the disputes which have arisen between the parties. The pending applications are also disposed of.
5. Arbitral proceedings will be held under the aegis of Delhi International Arbitration Centre (DIAC). Fee of the Arbitrator shall be fixed as per fee schedule.
6. Before entering upon reference, the learned Arbitrator will comply This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 14:19:14
with Section 12 of the Act.
7. It is made clear that since this Court has not expressed any opinion on the merits of the rival claims of the parties and it will be open for the parties to file their respective claims/counter claims before the learned Arbitrator which will be considered in accordance with law.
8. A copy of this order be forwarded to the learned Arbitrator for information.
O.M.P.(I) 13/2024 & I.A. 47138/2024
9. This petition is filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) seeking some interim directions.
10.
Learned counsel for the petitioner, on instructions, submits that this petition be converted into a petition under Section 17 of the Act as the arbitrator has been appointed in ARB.P. 1944/2024.
11. Accordingly, the present petition is converted into the petition under Section 17 of the Act. The learned arbitrator shall decide the petition in accordance with law.
12. The petition is disposed of. Pending application is also disposed of.
AVNEESH JHINGAN, J JULY 23, 2026 Ch
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 14:19:14