Delhi High Court - Orders
Massive Restaurants Private Limited vs Moonshine Food Ventures Llp And Anr on 3 July, 2025
Author: Manmeet Pritam Singh Arora
Bench: Manmeet Pritam Singh Arora
$~3
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ARB.P. 545/2025
MASSIVE RESTAURANTS PRIVATE LIMITED .....Petitioner
Through: Mr. Prateek Kumar, Ms. Aarushi Jain,
Mr. Yajit, Ms. Ankita and Mr.
Prashant Kr. Sharma, Advocates
versus
MOONSHINE FOOD VENTURES LLP AND ANR. .....Respondents
Through: Mr. Vaibhav Shahi, Advocate
(Through VC)
CORAM:
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
ORDER
% 03.07.2025
1. This is a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 ['Act of 1996'] seeking appointment of the Sole Arbitrator for the adjudication of disputes between the parties arising out of the Franchise Agreement dated 29.03.2019 ['the Agreement'] executed between the parties.
2. It is stated that the Petitioner is engaged in business of developing and operating premium fine-dining and casual-dining restaurant brands. It is stated that Respondent is engaged in the F&B business as an investor and approached the Petitioner, to obtain a franchise for the restaurant, Pa Pa Ya Cafe ['Restaurant'].
3. It is stated that for the said purpose, the Petitioner and the Respondent entered into a Franchise Agreement dated 29.03.2019.
ARB.P. 545/2025 Page 1 of 5This 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 04/07/2025 at 22:21:33
4. It is stated that since the Respondent defaulted in making timely payments, disputes arose between the parties.
5. It is stated that the arbitration agreement is recorded in Clause 27 of the Franchise Agreement. Since, there were disputes between the parties, the Petitioner invoked arbitration vide notice dated 31.01.2025.
6. Learned counsel for the Petitioner states that the value of the claims of the Petitioner is approximately Rs. 33,96,000/-. He prays that this Court be pleased to appoint an Advocate as a Sole Arbitrator for adjudication of the disputes between the parties herein.
7. Mr. Vaibhav Shahi, Advocate enters appearance on behalf of the Respondents.
7.1. He submits that the Respondents has not received the notice invoking arbitration dated 31.01.2025.
7.2. He states on instructions that without prejudice to the rights and contentions of the Respondents on the merits of the claim, the Respondents have no objection if the arbitration tribunal is constituted. 7.3. He submits that between the same parties, this Court vide order dated 25.04.2025 in ARB.P. 546/2025 titled Massive Restaurants Private Limited v. AV Hospitality Ventures LLP has already constituted an arbitral tribunal and the Respondents have no objection if the same arbitral tribunal is also appointed for adjudication of the disputes in this matter.
8. Mr. Prateek Kumar, learned counsel for the Petitioner also joins the request in this regard.
9. This Court has heard the learned counsels for the parties and perused the record.
10. The Arbitration clause i.e., Clause 27 of the Agreement clearly ARB.P. 545/2025 Page 2 of 5 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 04/07/2025 at 22:21:33 stipulates that all claims or disputes arising out of the Agreement shall be resolved through Arbitration. The said Clause 27 reads as under: -
"27. GOVERNING LAW AND DISPUTE RESOLUTION 27.1 Governing Law All matters relating to this Agreement shall be governed and construed in accordance with Indian law. The Courts in Delhi alone shall have exclusive jurisdiction for all and any matters arising out of or concerning or relating to or touching this Agreement.
27.2 Arbitration 27.2.1 Amicable Resolution of Disputes: If any dispute arises in relation to or in connection with this Agreement including in respect of the validity, interpretation, implementation or alleged material breach of any provision of this Agreement or regarding a question, and including the questions as to whether the termination of this Agreement by one party hereto has been legitimate arising out of this Agreement (a "Dispute") between the Parties ("Disputing Parties"), the Disputing Parties shall attempt to first resolve such dispute or claim through negotiations and discussions. 27.2.2 Arbitration: If the Dispute is still not resolved through negotiations and discussions as provided for under Clause 27.2.1 above after 30 (thirty) days, then any Disputing Party shall submit the claim or Dispute to be finally settled by arbitration. Such arbitration shall be governed by the Arbitration and Conciliation Act, 1996 as in force at the time of any such arbitration. The seat of arbitration shall be New Delhi. The Dispute shall be referred to a sole arbitrator ARB.P. 545/2025 Page 3 of 5 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 04/07/2025 at 22:21:33 appointed with the mutual consent of the Parties or, in case Parties are unable to agree upon the appointment of the sole arbitrator within 30 (thirty) days of receipt of the Dispute Notice by the other Party, either of the Parties may approach a court of Law having jurisdiction over the matter for appointment of the sole arbitrator ("Arbitrator")."
(Emphasis Supplied)
11. Notice in the present matter was issued on 15.04.2025. Today, the learned counsel(s) for the parties submits that the Court may proceed with appointment of the Sole Arbitrator and the arbitration proceedings be held under the aegis of Delhi International Arbitration Centre ['DIAC'].
12. In view of the aforesaid submissions of the parties and in terms of the arbitration clause in the Agreement, this Court deems it appropriate to appoint a sole arbitrator. Accordingly, Mr. Sarad k. Sunny, Advocate [Mob. No. 9958178853, Email id - [email protected]] is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.
13. The disputes between the parties under the said agreement are referred to the sole arbitrator, with the following directions: -
a) The arbitral proceedings will be held under the aegis of the DIAC. The arbitral proceedings will be governed by the rules of DIAC.
b) The remuneration of the Sole Arbitrator shall be in terms of Schedule IV of the Act of 1996, as amended by the Rules of DIAC.
c) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act of 1996 before entering into the reference and in the event, there is any impediment to the appointment of on that count, the parties are given liberty to file an appropriate application in this Court.
d) The statement of claim will be filed within four (4) weeks.
e) The parties are directed to appear before the learned Arbitrator for ARB.P. 545/2025 Page 4 of 5 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 04/07/2025 at 22:21:33 preliminary hearing on 21.08.2025 at 10:30 A.M.
f) Parties have notice of the next date of hearing before DIAC and will remain duly represented.
14. It is clarified that all rights and contentions of the parties, including on maintainability/arbitrability of the claims and on merits, are left open for adjudication by the learned Arbitrator and nothing said in this order is an expression on the merits of the case.
15. Copy of this order be sent to the learned Arbitrator and Organizing Secretary, DIAC for information and compliance.
16. With the aforesaid directions, this petition stands disposed of.
17. The digitally signed copy of this order, duly uploaded on the official website of the Delhi High Court, www.delhihighcourt.nic.in, shall be treated as a certified copy of the order for purpose of ensuring compliance. No physical copy of order shall be insisted by any authority/entity or litigant.
MANMEET PRITAM SINGH ARORA, J JULY 3, 2025/rhc/MG Click here to check corrigendum, if any ARB.P. 545/2025 Page 5 of 5 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 04/07/2025 at 22:21:33