Lease finance facility dispute under a Master Lease Agreement with arbitration clause. Petitioner terminated the agreement for payment default and sought appointment of a sole arbitrator under Section 11. Court appointed an advocate as sole arbitrator to conduct proceedings under DIAC rules, leaving all contentions open.
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$~20
versus
DEOKI TECHNOCRAFTS PRIVATE LIMITED & ORS.
.....Respondents
Through:
This is a digitally signed order.
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“Clause 21.4 of the Master Lease Agreement:-
If any dispute, difference or claim arises between any of the Obligors and the Lessor in connection with the Agreement or as to the interpretation, validity, implementation of effect of the Agreement or alleged breach of the terms of this Agreement or anything done or omitted to be done pursuant to the Agreement, the same shall be settled by arbitration to be held at place as set out in the Master Lease Summary Schedule in accordance with the Arbitration and Conciliation Act, 1996, or any statutory amendments thereto and shall be referred to a sole arbitrator to be appointed as per the procedure below:
The Party invoking the arbitration ("Claimant") shall address a notice to the other Party ("Respondent") suggesting the names of not more than three arbitrators, all of whom shall be either retired judges of the District Court, High Court or the Supreme Court or a lawyer having minimum 10 years ' relevant experience. The Respondent shall either:
However, if the Claimant does not receive any response from the Respondent within the said Notice Period, the Claimant shall be entitled to nominate any one person from amongst the proposed three names as the sole arbitrator and such arbitrator shall be deemed to be appointed by both the Parties.
In the event, the Respondent conveys its objection as per (ii) above then the sole arbitrator will be appointed by a Court having jurisdiction. The arbitration shall be conducted under the provisions of the Arbitration and Conciliations Act, 1996, together with its amendments, any statutory modifications or re-notify on enactment thereof for the time being in force.
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 23:32:39
The arbitration proceedings shall be conducted in English language. The award of the arbitrator shall be final and binding on all parties concerned. The cost of arbitration shall be borne by the Obligors.”
“Clause 33 of the Letter of Guarantee:-
If any dispute, difference or claim arises, between any of the Guarantor/s and TCL in connection with the Lease Assets under Lease Agreement or as to the interpretation, validity, implementation or effect of the Lease Agreement and/or Guarantee or as to the rights and liabilities or alleged breach of the Lease Agreement an/for the Letter of Guarantee or anything done or omitted to be done pursuant to the Lease Agreement, the same shall be settled by arbitration to be held at the place as mentioned at Item No. 7 of the First Schedule hereto in accordance with the Arbitration and Conciliation Act, 1996, or any statutory amendments thereto and shall be referred to a sole arbitrator to be appointed as per the procedure below:
The Party invoking the arbitration ("Claimant ") shall address a notice to the other Party ("Respondent") suggesting the names of not more than three arbitrators. all of whom shall be either retired judges of the District Court, High Court or the Supreme Court or a lawyer having minimum 10 years ' relevant experience. The Respondent shall either:
However, if the Claimant does not receive any response from the Respondent within the said Notice Period, the Claimant shall be entitled to nominate any one person from amongst the proposed three names as the sole arbitrator and such arbitrator shall be deemed to be appointed by both the
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 23:32:39
Parties.
In the event, the Respondent conveys its objection as per (ii) above then the sole arbitrator will be appointed by a Court having jurisdiction. The arbitration shall be conducted under the provisions of the Arbitration and Conciliations Act, 1996, together with its amendments, any statutory modifications or re-enactment thereof, for the time being in force. The award of the arbitrator shall be final and binding on all parties concerned. The arbitration proceedings shall be conducted in English language. The cost of arbitration shall be borne by the Lessee and/or the Guarantors.”
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 23:32:39
Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’).
JASMEET SINGH, J
MAY 16, 2025/sp
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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 23:32:39
1 issue framed by the court
Whether an arbitrator should be appointed under the arbitration clause of the Master Lease Agreement and Letter of Guarantee to adjudicate disputes arising from default in lease payments.
2 provisions across 1 enactments
TATA CAPITAL LIMITED
DEOKI TECHNOCRAFTS PRIVATE LIMITED
Jasmeet Singh
As recorded by the court registry
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