Arbitration referral is confined to existence of an arbitration agreement; insolvency extinction objections go to the tribunal.

An arbitration clause in the purchase agreement was sufficient to satisfy the limited referral inquiry under Section 11, so the court did not examine the respondent's objection that approval of the resolution plan in insolvency had extinguished the claim. That objection was treated as a merits issue for the arbitral tribunal, along with the effect of resolution-plan approval on liabilities. Limitation was found to be within time, and prior notices had not resolved the dispute amicably. The application was therefore allowed and a sole arbitrator appointed to decide the dispute.

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Issues: Whether the arbitration application deserved to be allowed and a sole arbitrator appointed notwithstanding the respondent's objection based on approval of the resolution plan in corporate insolvency proceedings.

Analysis: The purchase agreement contained an admitted arbitration clause, and the only enquiry at the referral stage was confined to the existence of an arbitration agreement. The objection founded on approval of the resolution plan and alleged extinguishment of the applicant's claim went to the merits of the dispute and could not be decided in proceedings under Section 11. The effect of insolvency resolution on the claim, including the impact of the provisions governing approval of a resolution plan and extinguishment of liabilities, was left for determination by the arbitral tribunal. Limitation was also found to be within time, and the dispute had not been resolved amicably despite notices.

Conclusion: The application was allowed and a sole arbitrator was appointed to adjudicate the dispute; the insolvency-based objection was rejected at the referral stage.

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