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of <h1>Supreme Court rules sole proprietorship cannot bypass arbitration rules u/s 11(6) of Arbitration Act, 1996.</h1> The Supreme Court addressed whether a sole proprietorship falls under international commercial arbitration, focusing on the appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. The case involved respondents applying to become distributors of a company's products in India as a sole proprietorship. The Court referred to Section 2(1)(f) of the Act, which defines international commercial arbitration and includes transactions involving foreign nationals or entities. The Delhi High Court lacked jurisdiction to appoint an arbitrator, and the Supreme Court declined to use its discretionary power under Article 142 to appoint one directly. The judgment clarifies that the nature of a business entity cannot circumvent arbitration provisions.
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