High CourtsSingle Bench(2026) 09 DEL CK 4869

Suba Hotels Limited Formerly Hotel Suba Star Private Limited vs M/S. Dreamland Fun World & Anr.

Delhi High Court · Decided on 25 September 2026

HON’BLE JUDGES
Om Prakash Shukla, J
RESULT
Disposed Of
CASE NUMBER
ARB.P. 1213/2026

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Judgment

43 paragraphs · 839 words
1.

The present petition has been filed under Sections 11(5) and 11(6) of the Arbitration and Conciliation Act, 19961 seeking appointment of Arbitrator.

2.

On the last date of hearing, notice was issued to the Respondents and the Respondents were asked to file reply to the present petition. However, the same has not been filed. On a perusal of the affidavit of service, it appears that the notice has been duly served on the Respondents.

3.

Despite the opportunity so granted, none appears on behalf of the Respondents. Respondents have also failed to file any reply to the present petition.

4.

In view thereof and considering that the Respondents have chosen not to participate in the present proceedings, despite sufficient service, this Court finds no impediment in proceeding to consider the appointment of a Sole Arbitrator.

5.

The tracking details placed on record establishes that the Respondents have been duly served at one of the addresses. The proof of service as reflected from the tracking details is annexed to the petition:

Exhibit reproduced from the original judgment
EventDateTimeOfficeRemarks
Item Dispatched07/09/202611:01:57Morbi MDG SO-
Bag Received07/09/202611:58:48Virpar M BO-
Item received at Destination07/09/202612:05:07Virpar M BO-
Taken out for delivery07/09/202613:03:01Virpar M BO-
Item Delivered(Addressee)07/09/202613:19:16Virpar M BOArticle Delivered to VY BAVRAVA

Department of Posts Government of India Ministry of Communications 9 Generated through Indiapost website on: 14/6/2026, 12:01:32 pm Consignment/MO Tracking Report Consignment/MO Number: 5U002535900IN Article Number: 5U002535900IN Article Type: SP_INLAND_PARCEL Tariff: ¥ 181 Booked At: Delhi High Court Extension Counter SO Booked On: 03/09/2026, 10:04:53 Destination: Morbi MDG SO Origin Pincode: 110003 Delivered On: 07/09/2026, 13:18:39 Destination Pincode: 363641

EventDateTimeOfficeRemarks
Item Booked03/09/202610:04:53Delhi High Court Extension Counter SO-
Item bagged03/09/202615:44:32Delhi High Court Extension Counter SO-
Item Dispatched03/09/202616:00:12Delhi High Court Extension Counter SO-
Bag Received03/09/202621:46:39Integrated Parcel Hub AMPC-
Item bagged06/09/202603:38:59Rajkot PH-
Item Dispatched06/09/202605:10:49Rajkot PH-
Bag Received for Forwarding06/09/202605:21:52Rajkot RMS TMO-
Item Dispatched06/09/202605:47:32Rajkot RMS TMO-
Bag Received07/09/202606:58:38Morbi MDG SO-
Item received at Destination07/09/202609:04:25Morbi MDG SO-
Item Invoiced to BO07/09/202610:00:51Morbi MDG SO-
Item bagged07/09/202610:29:58Morbi MDG SO-
Exhibit reproduced from the original judgment
6.

Clause 19 of the Franchise Agreement has an arbitration clause. The same is reproduced hereinbelow:

“19. DISPUTE RESOLUTION

19.1

Any and all disputes or differences arising out of or in relation to or in connection with this Agreement between the Parties or relating to the performance or non-performance of the rights and obligations set forth herein or relating to the breach, termination, invalidity or interpretation thereof shall be referred for arbitration to sole Arbitrator in accordance with the terms of Arbitration and Conciliation Act, 1996 or any amendments thereof.

19.2

The place of arbitration shall be New Delhi.

19.3

The language used in the arbitral proceedings shall be English.

19.4

Arbitration shall be conducted by a sole arbitrator.

19.5

The sole arbitrator shall be appointed by the Master Franchisee. The arbitral award shall be in writing and shall be final and binding on each party and shall be enforceable in any court of competent jurisdiction.

19.6

Noting contained in this Section 19 shall be construed to limit or preclude a party from bringing any action in any court of competent jurisdiction for injunctive or similar court order providing for other provisional relief to compel another party to comply with its obligations hereunder at any time. The costs of any such action, including, without limitations, attorney’s fees, shall be borne by the losing party. For all such proceedings, Courts at Delhi shall have the jurisdiction. “

7.

It is well settled that, while exercising jurisdiction under Section 11 of the Act, the scope of enquiry is confined to examining the prima facie existence of an arbitration agreement2.

8.

In the aforesaid circumstances, this Court finds no impediment in appointing a Sole Arbitrator.

9.

Accordingly, Mr. Abhishek Mahajan, Advocate (Mob. No. 9810981062) is appointed as a learned Sole Arbitrator to adjudicate the disputes arisen between the parties. The learned Sole Arbitrator shall enter upon the reference within three weeks from today.

10.

The learned Sole Arbitrator will proceed to the arbitration proceedings subject to furnishing requisite disclosures as required under Section 12(2) of the Act within three weeks of entering reference.

11.

The arbitration shall be carried under the rules and aegis of Delhi International Arbitration Centre (“DIAC”). The learned Arbitrator shall be entitled to fees as per the Schedule of Fees maintained by the DIAC.

12.

It shall be open to the parties to raise all pleas, including objection as to arbitrability and jurisdiction, before the learned Sole Arbitrator who shall decide the same in accordance with law.

13.

It is clarified that the observations made herein are only for the purpose of deciding the present petition under Section 11(6) of the Act. The learned Sole Arbitrator shall adjudicate the disputes independently and on their own merits, uninfluenced by any observations contained in the present order.

14.

The Registry is directed to send a receipt of this order to Mr. Abhishek Mahajan, Advocate, learned Arbitrator through all permissible modes including email.

15.

Accordingly, the present petition is disposed of in the above terms.

Footnotes

  1. 1.“Act” hereinafter
  2. 2.SBI General Insurance Co. Ltd. v. Krish Spinning 2024 SCC OnLine SC 1754