Section 11 arbitration referral limits judicial scrutiny to an arbitration agreement's existence; merits and dishonesty belong to the tribunal.

At the Section 11 referral stage, the SC held that the court's inquiry is limited to a prima facie check for the existence of an arbitration agreement. It cannot conduct a detailed examination of disputed facts, the merits of the claim, or whether the dispute is frivolous, non-existent, or dishonest; those matters are for the arbitral tribunal, including as a preliminary issue, on pleadings and evidence. Where the arbitration agreement is undisputed, refusal to appoint an arbitrator on a merits-based assessment exceeds the referral court's limited jurisdiction. The refusal to appoint an arbitrator was therefore unsustainable, and the dispute had to be referred to arbitration.

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Issues: Whether the referral court, while dealing with an application for appointment of an arbitrator, could undertake a detailed examination of the merits and refuse reference on the ground that the dispute was non-existent or dishonest.

Analysis: The scope of enquiry at the stage of Section 11 is confined to a prima facie examination of the existence of an arbitration agreement. The referral court is not to conduct a detailed scrutiny of disputed facts, the merits of the claim, or the alleged frivolity or dishonesty of the dispute. Such questions are ordinarily for the arbitral tribunal to determine, including as a preliminary issue, on the basis of pleadings and evidence. Where the arbitration agreement itself is undisputed, refusal to appoint an arbitrator on a merits-based assessment exceeds the limited jurisdiction of the referral court.

Conclusion: The refusal to appoint an arbitrator was unsustainable. The application under Section 11 ought to have been allowed and the dispute referred to arbitration.

Ratio Decidendi: At the referral stage under Section 11 of the Arbitration and Conciliation Act, 1996, the court's inquiry is limited to the prima facie existence of an arbitration agreement, and questions about the genuineness, frivolity, or merits of the dispute are for the arbitral tribunal.

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