SHYAMA SHYAM SERVICE CENTRE v. KANPUR CITY TRANSPORT SERVICES LIMITED AND 2 OTHERS
ARCO/123/2026 · 2026-09-29
Piyush Agrawal
Civil Appealbody2026
DailyLaw.ai
[ 2026 DAILYLAW 11710 (ALL) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 11710 (ALL) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
HIGH COURT OF JUDICATURE AT ALLAHABAD ARBITRATION AND CONCILI. APPL.U/S11(4) No. - 123 of 2026 Court No. - 7 HON'BLE PIYUSH AGRAWAL, J.
1. Heard the learned counsel for the parties. 2. The instant application has been preferred under Section 11(6) of the Arbitration & Conciliation Act, 1996 for appointment of a sole Arbitrator. 3. Learned counsel for the applicant submits that on 16.09.2015, 01.01.2019 and 01.01.2023, contracts were executed between the parties for operation and maintenance of buses on the routes inside the city of Kanpur. He further submits that on 29.11.2025, the applicant submitted supplementary bills to the respondent for its payment, but the same has not been paid till date and ultimately, a notice/letter was issued to the respondent invoking the arbitration clause; however, the respondent failed to respond to the same. Hence, this application. 4. Learned counsel for the opposite party does not dispute the fact about the existence of dispute between the parties. 5. Having heard learned counsel for the parties, the scope of the present proceedings under Section 11 of the Act does not require any elaboration in view of that position in law having been made crystal clear by a recent three judge decision of the Supreme Court in the case of M/S Mayavati Trading Pvt. Ltd. Vs. Pradyuat Deb Burman, Civil Appeal No. 7023 of 2019, decided on 05.09.2019 in which it has been held as below:
"This being the position, it is clear that the law prior to the 2015 Versus Counsel for Applicant(s) : Ambrish Tewari, Rajeshwari Prasad Counsel for Opposite Party(s) : C.S.C., Sunil Kumar Shyama Shyam Service Centre .....Applicant(s) Kanpur City Transport Services Limited And 2 Others .....Opposite Party(s)
Amendment that has been laid down by this Court, which would have included going into whether accord and satisfaction has taken place, has now been legislatively overruled. This being the position, it is difficult to agree with the reasoning contained in the aforesaid judgment as Section 11(6A) is confined to the examination of the existence of an arbitration agreement and is to be understood in the narrow sense as has been laid down in the judgment Duro Felguera, S.A. (supra) -- see paras 48 & 59."
6. While laying down that law, the Supreme Court had itself referred to paragraph nos. 48 & 59 of its earlier decision in the case of Duro Felguera, S.A. Vs.
Gangavaram Port Ltd., (2017) 9 SCC 729. 7. That position in law has been reiterated in a recent decision of the Supreme Court in GOQII Technologies Pvt. Ltd. Vs. Sokrati Technologies Pvt. Ltd., (2025) 2 SCC 192. 8. In the facts of the present case, on prima facie basis, it has to be accepted that there exists an arbitration clause, between the parties. Also, it is clear that the parties have not been able to appoint consented arbitrator and therefore, the appointing authority has to be assumed by this Court upon the present application. 9. At the same time, no final conclusion is being drawn as may affect the merits of the claim. That matter would remain to be considered by the appropriate forum at the appropriate stage, upon claim, objection, challenge or appeal being filed. Thus, amongst others it would remain open to the opposite party to raise all objections as the Act permits. 10. Leaving that course completely open to the respective parties, at present, only a forum is being provided for adjudication of a claim proposed to be raised and resisted, in accordance with the law. 11. With the consent of the parties, this Court appoints Hon'ble Mr. Justice Pankaj Mithal, (a Former Judge of the Supreme Court), resident of 6/2, Alkapuri Colony, Ashok Nagar, City & District - Prayagraj, (U.P) Mobile No. 9415216238 (Email ID: officeofhmjpankajmithal@gmail.com), to act as an Arbitrator for resolving the disputes between the parties. ARCO No. 123 of 2026 2
12. The learned Arbitrator shall be entitled to the fee in accordance as may be agreed between the parties and the learned Arbitrator. 13. In view of the above, the present arbitration application stands allowed. 14. The Registry is directed to forward a copy of this order to the learned Arbitrator through all permissible modes, including the electronic modes within a week. September 30, 2026 Amit Mishra ARCO No. 123 of 2026 3 (Piyush Agrawal,J.) Digitally signed by :- AMIT KUMAR MISHRA High Court of Judicature at Allahabad