Aditya Birla Finance Limited vs Ariyant Logistics Pvt. Ltd.

These Applications have been filed under Section 11 of the Arbitration and Conciliation Act, 1996 ( “the Act” ), seeking appointment of an arbitrator in connection with disputes and differences that are said to have arisen between the parties under an agreement dated September

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June 16, 2025

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ASHWINI JANARDAN VALLAKATI Digitally signed by ASHWINI JANARDANVALLAKATI Date: 2025.06.19 18:58:30 +0530

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502-CARAP-181-24 & 172-24.doc

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25, 2018. The arbitration agreement is contained in Clauses 12(N) and 24 (found at Pages 51 and 60 of the Applications). In the interest of brevity, the arbitration agreement is not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court.

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These Applications relate to the same borrowings by the three borrowers, namely, Ariyant Logistics Pvt. Ltd., Shakti Roadlines and GM Logistics Pvt. Ltd., who are Respondents in Commercial Arbitration Application No.181 of 2024. The Respondent in Commercial Arbitration Application No.172 of 2024 is a guarantor for the aforesaid borrowings.

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It is apparent from the record that the arbitration agreement was invoked by the Applicant on January 4, 2023 and October 17, 2022. There is no reply filed to the said invocation.

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The scope of review under Section 11 is explicitly set out in Section 11(6A) of the Act. It is now trite law, with particular regard to the decisions of a seven-judge bench in the Interplay Judgement¹ followed by multiple others, including SBI General² and Patel³ that the

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1 In Re: Interplay Between Arbitration Agreement under Arbitration and Conciliation Act, 1996 and Stamp Act, 1899 (2024) 6 SCC 1

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2 SBI General Insurance Co. Ltd. Vs. Krish Spinning, 2024 SCC OnLine 1974

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3 Ajay Madhusudan Patel Vs. Jyotindra S. Patel, 2024 SCC OnLine, 2597

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June 16, 2025

Ashwini Vallakati

502-CARAP-181-24 & 172-24.doc

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Section 11 Court ought not to venture beyond examining the existence of a validly existing arbitration agreement that has been formally executed. Even questions of existential substance is a matter that falls squarely in the domain of the arbitral tribunal, in view of Section 16 of the Act.

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Being satisfied that an arbitration agreement is validly in existence, and that arbitration has been duly invoked, it is in the fitness of things to refer the disputes and differences between the parties in connection with the aforesaid agreement to arbitration by a Sole Arbitrator.

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In these circumstances, both the aforesaid Applications are hereby finally disposedof , in terms of the following order:

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A) Justice Amjad A. Sayed (Retired), a former judge of this Court and former Chief Justice of Himachal Pradesh High Court, is hereby appointed as the Sole Arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreement referred to above;

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June 16, 2025

Ashwini Vallakati

502-CARAP-181-24 & 172-24.doc

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Office Address:225, DBS Business Centre, 2^nd Floor, Raheja Chambers, Nariman Point, Mumbai- 400 021 Email ID: [email protected]

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B) A copy of this Order will be communicated to the Learned Sole Arbitrator by the Advocates for the Applicant within a period of one week from the date of upload of this order. The Applicant shall provide the contact and communication particulars of the parties to the Arbitral Tribunal along with a copy of this Order;

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C) The Learned Sole Arbitrator is requested to forward the statutory Statement of Disclosure under Section 11(8) read with Section 12(1) of the Act to the Advocates for the Petitioner so as to enable them to file the same in the Registry of this Court. The Registry of this Court shall retain the said Statement on the file of this Application and a copy of the same shall be furnished by the Advocates for the Applicant to the Respondent;

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Ashwini Vallakati

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502-CARAP-181-24 & 172-24.doc

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D) The parties shall appear before the Learned Sole Arbitrator on such date and at such place as indicated, to obtain appropriate directions with regard to conduct of the arbitration including fixing a schedule for pleadings, examination of witnesses, if any, schedule of hearings etc. At such meeting, the parties shall provide a valid and functional email address along with mobile and landline numbers of the respective Advocates of the parties to the Arbitral Tribunal. Communications to such email addresses shall constitute valid service of correspondence in connection with the arbitration;

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E) All arbitral costs and fees of the Arbitral Tribunal shall be borne by the parties equally in the first instance, and shall be subject to any final Award that may be passed by the Tribunal in relation to costs.

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