Goqii Technologies Private Limited Vs Sokrati Technologies Private Limited (Supreme Court of India)
Supreme Court held that the scope of inquiry under Section 11 of the Arbitration and Conciliation Act, 1996 is limited to ascertaining the prima facie existence of an arbitration agreement. Thus, appeal allowed due to existence of arbitration agreement.
Facts- This appeal arises from the final judgment and order dated 30.04.2024 (“impugned judgment”) passed by the High Court of Judicature at Bombay in Commercial Arbitration Application No. 6 of 2024. The High Court dismissed the application preferred by Goqii Technologies Private Limited (“the appellant”) under Section 11 of the Arbitration and Conciliation Act, 1996 (“the Act, 1996”) seeking appointment of an arbitrator to adjudicate disputes and claims in terms of Clause 18.12 of the Master Services Agreement (“MSA”) executed between the appellant and Sokrati Technologies Private Limited (“the respondent”).
Conclusion- Held that the scope of inquiry under Section 11 of the Act, 1996 is limited to ascertaining the prima facie existence of an arbitration agreement. In the present case, the High Court exceeded this limited scope by undertaking a detailed examination of the factual matrix. The High Court erroneously proceeded to assess the auditor’s report in detail and dismissed the arbitration application.
