Four Section 11 petitions sought reference of disputes under Credit Facility Agreements to arbitration. The court found valid arbitration clauses and Section 21 notices filed within three years, followed SBI General Insurance v Krish Spinning, and appointed a common arbitrator for all petitions.
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CARS 24 FINANCIAL SERVICES PRIVATE LIMITED .....Petitioner
Through: Mr. Rit Arora, Advocate
versus
DEEPAK KUMAR PROPRIETOR OF M/S GOLDEN EAGLE AND ANR. .....Respondents
Through: None
Through: Mr. Rit Arora, Advocate
versus
FIROJ PROPRIETOR OF M/S CAR WORLD AND ANR. .....Respondents
Through: None
CARS 24 FINANCIAL SERVICES PRIVATE
LTD. ....Petitioner
Through: Mr. Rit Arora, Advocate versus MOHD AMIR SOHAIL PROPRIETOR OF M/S SOHAIL CARS AND ANR. .....Respondents Through: Mr. Pranav Sapra, Advocate
Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 22.0 8.2024 15:39:59
Arb P. 936/2024 & connected matters
Page 1 of 4
Signature Not Verified
Signature Not Verified
Digitally Signed By:AJIT KUMAR Signing Da te:2 2.08.2024 15:40:51
CARS 24 FINANCIAL SERVICES PRIVATE LIMITED .....Petitioner
Through: Mr. Rit Arora, Advocate
versus
MURALI KRISHNAN R.M. & ANR. .....Respondents Through: None
CORAM: HON'BLE MR. JUSTICE C.HARI SHANKAR
%
JUDGMENT (ORAL) 20.08.2024
1. These are petitions under Section 11(5) of the Arbitration and Conciliation Act, 19961 seeking reference of the disputes between the petitioner and the respondents in each case to arbitration.
2. Each of these petitions arises in the context of a Credit Facility Agreement, executed between the petitioner and the respondents in the petition. In each case, the Credit Facility Agreement envisages resolution of disputes by arbitration. The arbitration clause in all these Agreements is identical and reads thus:
“15.2. Arbitration: Any dispute under this Agreement shall be settled by binding arbitration conducted in English with the seat of arbitration in New Delhi before a single arbitrator appointed by Lender at its sole discretion, as per the Arbitration and Conciliation Act.”
1 “the 1996 Act” hereinafter
Arb P. 936/2024 & connected matters
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Signature Not Verified
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Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 22.0 8.2024 15:39:59
Digitally Signed By:AJIT KUMAR Signing Da te:2 2.08.2024 15:40:51
3. According to the petitioner, there are outstandings to be paid by the respondents to the petitioner, in connection with which the petitioner, issued a notice under Section 21 of the 1996 Act, seeking reference of the disputes to arbitration. The respondents did not reply, whereupon the petitioner has approached this Court.
4. In all these petitions, except Arb. Pet. 938/2024, there is no appearance on behalf of the respondents despite having been duly served by various modes. No respondent has condescended to file a reply to any of these petitions either.
5. In that view of the matter, as there exists an arbitration clause between the parties and as the present petition has been filed within three years of the Section 21 notice issued by the petitioner to the respondents, following the judgment of the Supreme Court in SBI General Insurance Co Ltd v. Krish Spinning2 , this Court proceeds to appoint an Arbitrator to arbitrate on the disputes between the parties.
6. Accordingly, Mr. G S Pannu (Tel. 9811304457), retired President of the Income Tax Appellate Tribunal, is appointed as the arbitrator to arbitrate on the disputes between the parties.
7. As the disputes are identical and the only difference is with respect to the amount involved, a common arbitrator is being appointed so as to facilitate expeditious disposal.
2 2024 SCC OnLine SC 1754
Arb P. 936/2024 & connected matters
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Signature Not Verified Digitally Signed By:AJIT KUMAR Signing Da te:2 2.08.2024 15:40:51
Signature Not Verified Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 22.0 8.2024 15:39:59
8. The arbitrator shall be entitled to charge fees as per the Fourth Schedule to the 1996 Act.
9. The learned arbitrator is also requested to file the requisite disclosure under Section 12(2) of the 1996 Act, within a week of entering on reference.
10. All questions of fact and law are left open to be adjudicated in the arbitral proceedings.
11. These petitions stand allowed in the aforesaid terms with no orders as to costs.
C.HARI SHANKAR, J
AUGUST 20, 2024 yg
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Arb P. 936/2024 & connected matters
Page 4 of 4
Signature Not Verified
Signature Not Verified
Digitally Signed By:CHANDRASHEKHARAN HARI SHANKAR Signing Date: 22.0 8.2024 15:39:59
Digitally Signed By:AJIT KUMAR Signing Da te:2 2.08.2024 15:40:51
1 issue framed by the court
Should disputes under Credit Facility Agreements containing arbitration clauses be referred to arbitration by appointing an arbitrator?
Colour shows how this judgement treated each authority
SBI General Insurance Co Ltd v. Krish SpinningFollowed¶5
2024 SCC OnLine SC 1754 · Who else cites this
4 provisions across 1 enactments
Cars 24 Financial Services Private Limited
Deepak Kumar Proprietor of M/S Golden Eagle
Firoj Proprietor of M/S Car World
Mohd Amir Sohail Proprietor of M/S Sohail Cars
Murali Krishnan R.M.
C.Hari Shankar
As recorded by the court registry
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