Loan default disputes under a Master Loan Agreement with an arbitration clause; the court appointed an independent sole arbitrator to adjudicate the disputes under DIAC rules, leaving preliminary objections on arbitrability to be raised before the arbitrator.
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$~15
% Date of Decision : 13.12.2024
MONEYWISE FINANCIAL SERVICES PVT LTD .....Petitioner Through: Ms. Mehvish Khan, Mr. Aman Choudhary, Advocates.
versus
JAS ENTERPRISES THROUGH ITS PROPRIETOR SH DAVE PRAKASH PRADYMAN AND ANR .....Respondents Through: None.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
SACHIN DATTA, J. ( Oral )
Signature Not Verified
ARB.P. 1396/2024 Page 1 of 4
Digitally Signed By:ROHIT KUMAR PATEL Signing Dat e:1 7.12.2024 03:44:23
Thousand Nine Hundred and Eighty-Four only).
“10.1 Arbitration: Any disputes, differences, controversies and questions directly or indirectly arising at any time hereafter between the Parties or their respective representatives or assigns, arising out of or in connection with this Agreement (or the subject matter of this Agreement), including, without limitation, any question regarding it existence, validity, interpretation, construction, performance, enforcement, rights and liabilities of the Parties, or termination (“Dispute”), shall be referred to a sole arbitrator duly appointed by the Lender. The language of the arbitration shall be English. The seat of the arbitration shall be at New Delhi and the language of proceedings shall be English. The award rendered shall be in writing and shall get out the reasons for the arbitrator’s decision. The costs and expenses of the arbitration shall be borne equally by each Party with, each party paying for its own fees and costs including attorney fees, except as may be determined by the arbitration tribunal. Any award by the arbitration tribunal shall be final and binding.”
Signature Not Verified
ARB.P. 1396/2024 Page 2 of 4
Digitally Signed By:ROHIT KUMAR PATEL Signing Dat e:1 7.12.2024 03:44:23
petitioner. It has been stated that the petitioner has taken the requisite steps to serve the respondents at their known address/es. Respondents have been duly served via Speed Post and Courier. It has also been stated that the respondent no. 1 has also been served via email at [email protected]. 9. In the circumstances, the present petition is taken up for hearing and disposal, despite no appearance on behalf of the respondents. 10. Since the existence of the arbitration clause is evident from a perusal of the Master Loan Agreement, there is no impediment to constituting an arbitral tribunal for adjudicating the disputes between the parties, as mandated in terms of the judgments of the Supreme Court in SBI General Insurance Co. Ltd. v. Krish Spinning , 2024 INSC 532 and Interplay between Arbitration Agreements under the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In re , 2023 SCC OnLine SC 1666. 11. Further, in terms of the judgments of the Supreme Court in Perkins Eastman Architects DPC v. HSCC (India) Ltd (2020) 20 SCC 760 , TRF Limited v. Energo Engineering Projects Ltd, (2017) 8 SCC 377 and Bharat Broadband Network Limited v. United Telecoms Limited , 2019 SCC OnLine SC 547, it is incumbent on this Court to appoint an independent sole arbitrator to adjudicate the disputes between the parties.
Signature Not Verified
Digitally Signed By:ROHIT ARB.P. 1396/2024 Page 3 of 4 KUMAR PATEL Signing Dat e:1 7.12.2024 03:44:23
proceedings subject to furnishing to the parties requisite disclosure as required under Section 12 of the A&C Act.
SACHIN DATTA, J
DECEMBER 13, 2024/ ak
Signature Not Verified
Digitally Signed By:ROHIT ARB.P. 1396/2024 Page 4 of 4 KUMAR PATEL Signing Dat e:1 7.12.2024 03:44:23
1 issue framed by the court
Whether a sole arbitrator should be appointed under section 11 of the A&C Act given the arbitration clause in the Master Loan Agreement dated 24.06.2019.
Colour shows how this judgement treated each authority
SBI General Insurance Co. Ltd. v. Krish SpinningRelied on¶10
2024 INSC 532 · Who else cites this
Perkins Eastman Architects DPC v. HSCC (India) LtdRelied on¶11
(2020) 20 SCC 760 · Who else cites this
TRF Limited v. Energo Engineering Projects LtdRelied on¶11
(2017) 8 SCC 377 · Who else cites this
Bharat Broadband Network Limited v. United Telecoms LimitedRelied on¶11
2019 SCC OnLine SC 547 · Who else cites this
2 provisions across 1 enactments
Moneywise Financial Services Pvt Ltd
Jas Enterprises through its proprietor Sh Dave Prakash Pradyman
Respondent No. 2 (Anr.)
Sachin Datta
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
