Synopsis

The petitioner filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim reliefs including appointment of a receiver to take possession of financed medical equipment and restraint on alienation. The court had granted an interim injunction on 3rd February 2025. However, over a year later, the petitioner had not taken any step to commence arbitration proceedings. The court held that the necessary concomitant of a Section 9 petition is a manifest intention to initiate arbitration. Under Section 9(2), arbitral proceedings must commence within 90 days of an interim order. The petitioner’s inaction snapped the link between the interim order and the contemplated arbitration. The petition was dismissed and the interim order was vacated.

Court: High Court of Delhi

Coram: Honourable Mr. Justice Harish Vaidyanathan Shankar

Date of Judgment: 21st April 2026

Citation: O.M.P.(I) (COMM.) 32/2025 (unreported)

Core Law: Arbitration and Conciliation Act, 1996 – Section 9 (interim measures by court), Section 9(2) (time limit for commencement of arbitral proceedings), Section 21 (commencement of arbitral proceedings)

2. Legal Framework

Major laws and provisions involved

• Arbitration and Conciliation Act, 1996 – Section 9 (interim measures by court); Section 9(2) (mandatory commencement of arbitral proceedings within 90 days); Section 21 (commencement of arbitral proceedings)

Key legal principles applied

Section 9 petition implies manifest intention to arbitrate: A party invoking Section 9 before commencement of arbitral proceedings must satisfy the court that a valid arbitration agreement exists and that the applicant intends to take the dispute to arbitration. The word “before” in Section 9 requires proximity between the interim order and the contemplated arbitration.

Mandatory time limit under Section 9(2): Where a court grants interim measures before arbitral proceedings commence, the arbitral proceedings shall be commenced within 90 days from the date of such order or within such further time as the court may determine. Failure to do so may result in the interim order ceasing to operate and the petition

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