Jurisdiction Clause Not a Substitute for Arbitration Clause: P&H High Court

Case Name: Anandpur Sahib Foundation v. M/s Grapple Brothers Concepts LLP & Ors.

Date of Judgment: 25 February 2026

Citation: ARB-592-2025

Bench: Justice Jasgurpreet Singh Puri

Held: The Punjab & Haryana High Court held that appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 is not permissible in the absence of a valid and enforceable arbitration clause. A clause providing for adjudication by a statutory authority or civil court jurisdiction cannot be construed as an arbitration agreement.

Summary: The petitioner approached the High Court under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator on the basis of an agreement executed between the parties. It was contended that disputes had arisen and a notice invoking arbitration had been issued, but no response was received from the respondents.

The petitioner relied upon Clause 7 of the agreement, asserting that it constituted an arbitration clause. However, on examination, the clause provided that disputes were to be resolved through adjudication by the Punjab Infrastructure Regulatory Authority, and in the event of its non-constitution, by approaching the competent civil court at Chandigarh.

Upon a query by the Court, the petitioner attempted to justify invocation of arbitration by relying upon administrative instructions issued by the Government of Punjab regarding appointment of arbitrators.

The Court held that for invoking Section 11 jurisdiction, there must be a clear and explicit arbitration agreement in writing between the parties. The existence of such an agreement is a sine qua non for appointment of an arbitrator. The clause in question did not contemplate arbitration at all but instead provided for adjudication through a statutory authority or civil court proceedings.

The Court further observed that administrative instructions issued by the Government cannot substitute or create an arbitration agreement between parties. In the absence of any arbitration clause, the petition was not maintainable.

Decision: The High Court dismissed the petition filed under Section 11 of the Arbitration and Conciliation Act, 1996, holding that no arbitration clause existed between the parties and therefore no arbitrator could be appointed.