MATSYA FINCAP PVT LTD vs GOVIND LAL

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 16.02.2026 Judgment pronounced on: 05.05.2026 Judgment uploaded on: 05.05.2026 + EFA(COMM) 8/2024 MATSYA FINCAP PVT LTD .....Appellant Through: Mr. Bhupendra Kumar Gupta, AR. versus GOVIND LAL .....Respondent Through: Mr. Pramod Kumar and Mr. Gaurav, Advs. CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MR. JUSTICE AMIT MAHAJAN JUDGMENT ANIL KSHETARPAL, J. 1. Through the present Appeal, the Appellant (Decree Holder) assails the correctness of the order dated 01.04.2024 [hereinafter referred to as „Impugned Order‟], passed in EX. (COMM.) No.287/2023, whereby the learned District Judge declined to enforce the ex-parte arbitral award dated 22.10.2022 [hereinafter referred to as „the Award‟] primarily on the ground that the receipt-cum- acknowledgement dated 16.09.2020 [hereinafter referred to as „acknowledgement letter‟] containing the arbitration clause was not signed by the Appellant. 2. The learned District Judge has held that since the acknowledgement, though signed by the Respondent (Judgment Debtor) and handed over to the Appellant, did not bear the Appellant‟s signature, it did not constitute a valid arbitration agreement within the Signature Not Verified Signed By:JAI NARAYAN Signing Date:05.05.2026EFA(COMM) 8/2024 Page 1 of 18 17:14:32 meaning of Section 7 of the Arbitration and Conciliation Act, 19961. 3. Therefore, the issue that arises for consideration before this Court is whether an acknowledgment letter issued by the Respondent to the Appellant, containing an arbitration clause but signed by only one of the parties, constitutes a valid arbitration agreement within the meaning of Section 7 of the A&C Act, and consequently, whether the initiation of the arbitral proceedings pursuant theret