Allowed

Aditya Birla Finance Limited v. Bhaskar Reddy & Anr.

Delhi HC8 Feb 2024ARB.P./763/2023

Case brief

AI extract

What is this about?

The Delhi High Court appointed Mr. Aashneet Singh as a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 following a petition by Aditya Birla Finance Limited. The arbitrator will adjudicate disputes under DIAC with remuneration fixed per the Act's Fourth Schedule.

What did the court decide?

Appointment made---Mr. Aashneet Singh appointed as Sole Arbitrator.

Aditya Birla Finance Limited Vs Bhaskar Reddy & Anr. — Arbitration | Delhi HC (2024)

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$~13

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 763/2023

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ADITYA BIRLA FINANCE LIMITED ..... Petitioner Through: Mr Vidur Sikka, Adv. (through VC)

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versus

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BHASKAR REDDY & ANR. ..... Respondents Through: None CORAM:

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HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 08.02.2024

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This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator to adjudicate the disputes between the parties.

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The petitioner had entered a loan agreement with the respondents and extended letter of credit vide sanction letter dated 05.03.2021. The respondent No.1 is the loan applicant and respondent No.2 is the guarantor. The sanction letter has been signed by the respondent No.1 and the deed of guarantee has been signed by respondent No.2.

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The arbitration clause is contained in Clause 25.17 of the Line of Credit Agreement dated 18.03.2021. The deed of guarantee also has a similar arbitration agreement being Clause 25 which reads as under:

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“25. That all claims or disputes arising out of or in relation to this Guarantee shall be settled by arbitration. The arbitration tribunal shall consist of a sole arbitrator to be appointed by

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/12/2024 at 16:36:39

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Lender. All parties to this Guarantee hereby expressly consent to Lender being the sole appointing authority. Any vacancy created in the arbitration tribunal, for any reason whatsoever, shall also be filed only by Lender acting as the sole appointing authority. The place of arbitration shall be as mentioned in the Schedule 1 Part C hereinbelow. Parties agree that the Courts as mentioned in the Schedule 1 Part C hereinbelow shall have the exclusive jurisdiction to exercise all powers under the Arbitration & Conciliation Act, 1996.”

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Since the respondent No.1 defaulted in making the payment, the petitioner recalled the loan and issued a notice dated 28.09.2022 and subsequently on 20.12.2022 invoked the arbitration clause.

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This Court vide order dated 29.11.2023 was pleased to direct service of the respondents through publication in the Indian Express (English) in Bengaluru Edition. The same has been done vide publication dated 18.01.2024, copy of which is placed on record.

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For the said reasons, respondents are served but there is nobody appearing on behalf of the respondents.

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For the said reasons, the petition is allowed. Since the parties are still having disputes between them, the following directions are issued:-

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i) Mr. Aashneet Singh, Advocate (Mob. No. 9958864713) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties.

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ii) The arbitration will be held under the aegis of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’). The

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remuneration of the learned Arbitrator shall be in terms of the Fourth Schedule of the Arbitration & Conciliation Act, 1996.

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iii) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference.

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iv) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claim, any other preliminary objection, as well as claims on merits of the dispute of either of the parties, are left open for adjudication by the learned arbitrator.

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v) The parties shall approach the learned Arbitrator within two weeks from today.

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The petition is allowed and disposed of in the aforesaid terms.

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JASMEET SINGH, J

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FEBRUARY 8, 2024 sr

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Click here to check corrigendum, if any

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/12/2024 at 16:36:39

Aditya Birla Finance Limited v. Bhaskar Reddy & Anr.

Case brief

What is this about?

What did the court decide?

Aditya Birla Finance Limited v. Bhaskar Reddy & Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Coram

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