In Brief
GoQII Technologies sought arbitration under its Master Services Agreement with Sokrati Technologies regarding disputed invoices for digital marketing services. GoQII commissioned an audit that found poor returns on investment and alleged overcharges. The High Court dismissed GoQII's request for arbitrator appointment, finding the dispute frivolous and dishonest. The Supreme Court allowed the appeal, holding that the High Court exceeded its limited scope under Section 11 of the Arbitration Act. The Court clarified that referral courts need only verify prima facie existence of an arbitration agreement; determining whether disputes are meritorious, frivolous, or dishonest is properly within the arbitrator's domain. The Court appointed an arbitrator and noted that arbitrators may later impose costs on parties abusing the arbitration process.
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