Disposed¶17

Csl Finance Ltd. v. Shankarlal J Parmar and Anr.

Delhi HC24 Jan 2025ARB.P./1172/2024

Case brief

AI extract

What is this about?

Section 11(6) A&C Act appointment of sole arbitrator by consent; loan agreement dated 30.06.2019 with Clause 17 arbitration clause; invocation under Section 21 by notice dated 16.02.2024; DIAC-administered arbitration; Delhi High Court ARB.P.; CSL Finance Ltd v. Shankarlal J Parmar; rights and contentions including arbitrability left open.

What did the court decide?

Petition disposed of: disputes between the parties under the Loan Agreement referred to the Arbitral Tribunal; Mr. Monu Kumar, Advocate appointed as Sole Arbitrator; arbitration to be held under the aegis of DIAC with a Section 12 declaration required before entering reference; all rights and contentions left open; parties directed to approach the learned Arbitrator within two weeks. ¶17

Csl Finance Ltd. Vs Shankarlal J Parmar and Anr. — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether an Arbitral Tribunal comprising a Sole Arbitrator should be appointed to adjudicate the disputes between the parties arising under the Loan Agreement dated 30.06.2019.

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Court's answer

Both parties having consented to the reference to the arbitral tribunal, the petition under Section 11(6) A&C Act was disposed of with directions referring the disputes between the parties to the Arbitral Tribunal.

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Ratio / Principle

Mr. Monu Kumar, Advocate was appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

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Key takeaways

The arbitration is to be held under the aegis of the Delhi International Arbitration Centre (DIAC), Delhi High Court, with the arbitrator's remuneration governed by the DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018 or as the parties may agree.ratio¶18
All rights and contentions of the parties, including arbitrability of any claim, preliminary objections, and claims on merits, were left open for adjudication by the learned arbitrator.ratio¶19

Detailed headnote1 paragraphs

Delhi High Court (Manoj Kumar Ohri, J.), by order dated 24.01.2025, disposed of a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 filed by CSL Finance Ltd against Shankarlal J Parmar and Anr., seeking appointment of a Sole Arbitrator pursuant to a Loan Agreement dated 30.06.2019 (Clause 17 arbitration clause; place of arbitration Delhi) and a Section 21 invocation notice dated 16.02.2024. The respondents raised no objection to reference. The Court referred the disputes to the Arbitral Tribunal, appointed Mr. Monu Kumar, Advocate as Sole Arbitrator, directed that the arbitration be held under the aegis of the Delhi International Arbitration Centre (DIAC) with remuneration per the DIAC (Administrative Cost and Arbitrators' Fees) Rules, 2018 or as agreed, required a declaration under Section 12 before entering the reference, left all rights and contentions (including arbitrability and preliminary objections) open, and directed the parties to approach the arbitrator within two weeks.

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$~72

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 1172/2024 and I.A. 35467/2024

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CSL FINANCE LTD .....Petitioner

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Through: Ms.Sonali Gambhir, Advocate

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versus

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SHANKARLAL J PARMAR AND ANR .....Respondents Through: Appearance not given

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CORAM:

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HON'BLE MR. JUSTICE MANOJ KUMAR OHRI

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O R D E R % 24.01.2025

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By way of present petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter, referred to as the ‘A&C Act’), the petitioner seeks appointment of Arbitral Tribunal comprising of a Sole Arbitrator, to adjudicate the disputes between the parties.

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Learned counsel for the petitioner submits that the parties had entered into a Loan Agreement dated 30.06.2019, Clause 17 of which provides that disputes with respect to the Agreement shall be resolved through arbitration as per provisions of A&C Act. It further provides that place of arbitration would be at Delhi.

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Disputes having arisen between the parties, petitioner invoked arbitration vide notice dated 16.02.2024, issued under Section 21 of the A&C Act.

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Learned counsel appearing for the respondent, on instructions, submits that the answering respondents have no objection to the matter

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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 30/01/2025 at 12:39:29

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being referred to the Arbitral Tribunal comprising of a Sole Arbitrator.

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Considering that both the parties have consented to the reference to the arbitral tribunal, the present petition is disposed of with the following directions:

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i) The disputes between the parties under the said agreement are referred to the Arbitral Tribunal. ii) Mr. Monu Kumar, Advocate (Mob.No. 7903479874) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties. iii) 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 remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018 or as the parties may agree.

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iv) The learned Arbitrator shall furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. v) 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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vi) The parties shall approach the learned Arbitrator within two weeks from today.

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MANOJ KUMAR OHRI, J

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JANUARY 24, 2025 ns

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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 30/01/2025 at 12:39:29

Csl Finance Ltd. v. Shankarlal J Parmar and Anr.

Case brief

What is this about?

What did the court decide?

Csl Finance Ltd. v. Shankarlal J Parmar and Anr.

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

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