M/S Sandhu Motor Finance Pvt. Ltd. Vs Anil Malik

This a petition filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 seeking appointment of an Arbitrator for adjudication of disputes between the parties.

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The respondent approached the petitioner for personal loan and accordingly an agreement was entered into dated 21.04.2019.

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Since there were disputes between the parties, the petitioner issued a legal notice dated 04.02.2021 and thereafter, appointed a sole arbitrator.

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However, since it was a case of unilateral appointment, the arbitral award was set aside.

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The Loan Agreement contains an arbitration clause being clause No. 10.14 which reads as under:

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“10.14 Any difference or dispute arising between the parties out the operation of this agreement or renewal thereof, or in any way relating to the Rights and Liabilities of the parties

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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 30/06/2025 at 23:51:04

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hereunder the same shall be referred to the sole arbitration of the person appointed by the financer.

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The arbitration proceedings shall be conducted in accordance with Arbitration and Conciliation Act 1996 and Rule made there under as amended from time to time. The Venue of Arbitration shall be Delhi, courts at Delhi shall have exclusive jurisdiction in all matters arising under this Agreement”

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Since the respondent was not served in the ordinary course, the Joint Registrar vide order dated 22.04.2025 was pleased to permit the respondent to be served by way of publication in newspapers, namely " Statesman " and " Rashtriya Sahara ", having circulation in Delhi.

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The respondent has been served and the copies of the newspapers have been filed.

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Despite service, there is nobody appearing on behalf of the respondent.

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I am of the view that the disputes between the parties need to be adjudicated through the arbitral mechanism.

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For the said reasons, the petition is allowed and the following directions are issued:-

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i) Mr. Rishi Manchanda (Advocate) (Mob. No. 9911681178) 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 and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’).

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iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018.

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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 30/06/2025 at 23:51:04

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iv) 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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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/counter-claims and 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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The present petition is disposed of in the aforesaid terms.

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JASMEET SINGH, J

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MAY 13, 2025/sp

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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 30/06/2025 at 23:51:04

M/S Sandhu Motor Finance Pvt. Ltd. v. Anil Malik

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M/S Sandhu Motor Finance Pvt. Ltd. v. Anil Malik

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