Introduction
In Ballarpur Industries Ltd. v. SG
Enterprises [2025:DHC:4232], the Delhi High Court
addressed two key legal issues: (i) whether the mandate of a
unilaterally appointed sole arbitrator may be terminated under
Section 14(1)(a) of the Arbitration and Conciliation Act, 1996
("Arbitration Act"); and (ii) whether
arbitration claims persist if they are not included in an approved
resolution plan under the Insolvency and Bankruptcy Code, 2016
("IBC").
Brief Facts
The parties entered into a Distribution Agreement on 1 July
2009, relating to the supply and sale of stationery products. The
agreement contained an arbitration clause requiring the parties to
attempt to resolve disputes amicably first. If they failed to reach
a resolution, a single arbitrator was to be appointed by mutual
agreement. If no agreement was reached on the arbitrator, the
Managing Director of the respondent company was authorised to make
the appointment.
