Allowed

Axis Finance Limited v. Chappan Bhog & Ors.

Delhi HC21 Feb 2025ARB.P./2031/2024

Case brief

AI extract

What is this about?

The Delhi High Court appointed Ms. Mansi Sharma as the Sole Arbitrator ex parte under Section 11(6) of the A&C Act. The Court found a valid arbitration agreement subsisting despite the absence of respondents, deemed the dispute arbitrable, and directed constitution of the tribunal under DIAC.

What did the court decide?

Appointment of Ms. Mansi Sharma as Sole Arbitrator and direction to approach the arbitrator by 07th March 2025.

Axis Finance Limited Vs Chappan Bhog & Ors. — Arbitration | Delhi HC (2025)

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- ARB.P. 2031/2024

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AXIS FINANCE LIMITED .....Petitioner

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Through: Mr. Vivek Malik and Mr. Vivek Sinaha, Advs.

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versus

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CHAPPAN BHOG & ORS. .....Respondents Through:

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CORAM: HON'BLE MR. JUSTICE ANISH DAYAL

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O R D E R % 21.02.2025

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Pursuant to notice issued, no one appears on behalf of respondents. The service report by the Registry states that the respondent Nos.1-3 were served through E-mail. Affidavit of service filed by the petitioner states that the service has been done by E-mail and has not bounced back.

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Counsel for the petitioner states that respondents have also been served through speed-post.

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This is a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘ A&C Act ’) seeking appointment the Sole Arbitrator arising out of the Facility Agreement dated 26^th September 2023. Since there were disputes, petitioner invoked arbitration on 10^th October 2024.

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It is stated that the arbitration clause is contained in Clause 51(6) and 51(9) of the said agreement. The arbitration clause reads as under:

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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 23:47:05

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In addition, Clause 51(6) of the General Terms and Conditions states that the seat for Arbitration shall be in Delhi/Mumbai and Clause 51(9) states that the jurisdiction of the competent Courts will be in Delhi/Mumbai . 6. Counsel for the petitioner points out that the agreement was executed in Delhi as evident from the locations specified. 7. As per the invocation notice, a demand of Rs.30 Lacs along with interest has been made which has now ballooned up to a greater amount with passage of time, as per the counsel for the petitioner.

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The Supreme Court in Fugro Survey (India) (P) Ltd. v. Ramunia International Services Ltd. (2012) 10 SCC 752 and Suprema Inc. v. 4G Identity Solutions (P) Ltd. (2015) 13 SCC 122, and this Court in, Energy Efficient Services Ltd. v. Merry Gold Enterprises 2023 SCC OnLine Del 2365 and Aditya Birla Finance Ltd. v. Anjali Nag 2024 SCC OnLine Del 2568, in similar situations, where the respondents did not appear before the Courts despite issuance of notice and service being affected upon them , proceeded exparte against such respondents and appointed the arbitrator.

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Upon a conspectus of the averments contained in the petition and the submissions made, this Court is of the opinion that there is a valid and subsisting arbitration agreement between the parties, within the territorial jurisdiction of this Court, the disputes stated to have arisen between the parties

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do not appear ex facie to be non-arbitrable.

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Considering the aforesaid, the petition is allowed. The following directions are issued:

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i) Ms. Mansi Sharma, Advocate (Mob. No. 9910201722) 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 (‘ DIAC ’). The remuneration of the learned Arbitrator shall be in terms of the Fourth Schedule of the A&C Act.

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iii) The Sole Arbitrator is requested to furnish a declaration in terms of Section 12 of the A&C 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 the arbitrability/maintainability of any of the claim, any other preliminary objection, as well as claims on merits of the dispute by either of the parties are left open for adjudication by the Sole Arbitrator.

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