3M India Ltd. Vs M/S Im Traders

3M INDIA LTD., A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT: WEWORK, PRESTIGE CENTRAL, 3RD FLOOR, 36 INFANTRY ROAD BENGALURU - 560 001, REPRESENTED BY ITS AUTHORISED SIGNATORY MR. VIJAYSONI.

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…PETITIONER

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(BY SRI. B. PRAMOD, ADVOCATE)

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Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA

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AND:

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M/S IM TRADERS, HAVING ITS REGISTERED OFFICE AT 110/11, NAYA GOAN (EAST), LUCKNOW - 226 001 REPRESENTED BY MR. MANMOON USMANI, PARTNER, HAVING ITS REGISTERED OFFICE AT 110/11, NAYA GOAN (EAST) LUCKNOW - 226 001.

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…RESPONDENT

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(SERVICE OF NOTICE TO RESPONDENT HELD SUFFICIENT VIDE ORDER DATED 06.06.2025)

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NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SEC.11 OF THE ARBITRATION AND CONCILIATION ACT,1996 PRAYING TO APPOINT A SOLE ARBITRATOR TO RESOLVE ALL THE DISPUTES AND DIFFERENCES BETWEEN THE PETITIONER AND THE RESPONDENT IN ACCORDANCE WITH THE ARBITRATION CLAUSE CONTAINED IN THE AGREEMENT DATED 25.07.2016 (ANNEXURE-A).

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI

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ORAL ORDER

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This Civil Miscellaneous Petition is filed under

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Section 11 of the Arbitration and Conciliation Act, 1996, seeking for the appointment of an Arbitrator to resolve the dispute and differences between the parties to the petition in terms of clause 15(g) contained in the Authorized Distribution Agreement dated 25.07.2016 vide Annexure-

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A, as per the provisions of the Arbitration and Conciliation Act, 1996, and the Rules.

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NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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Brief facts, leading rise to the filing of this petition are as follows:

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The petitioner and respondent entered into an Authorized Distribution Agreement dated 25.07.2016 for Authorized Distributor, for selling, distributing and marketing the company's “3M” brand products. The petitioner is engaged in the business of selling and distributing of products under the trade mark/name of "3M" brand products. The respondent is the Authorized Distributor of the petitioner and was carrying out the business of the distribution of the company's of “3M” brand products. The petitioner and the respondent have entered into a distribution agreement dated 25.07.2016, whereby the petitioner has appointed the respondent as an Authorized Distributor for selling distributing and marking "3M" brand products. For every purchase by the respondent from the petitioner, a 45 days credit period was given to clear the invoices for the said purchase.

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NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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Pursuant to the agreement, the petitioner has

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delivered its products as per the demands of the respondent from time to time. Thereafter, the respondent, despite repeated requests failed to clear the outstanding dues. The petitioner has issued a notice dated 12.02.2024 whereby, the petitioner informed the respondent that he has not complied regarding the re-payment terms of the said agreement, and demanded a sum of Rs.59,82,701/(Rupees Fifty Nine Lakhs Eighty Two Thousand Seven Hundred and One only) with interest at 24% p.a. There was no response, received from the respondent to the said notice. The petitioner was constrained to issue an arbitration notice on 15.05.2024, invoking an arbitration clause. The respondent did not reply to the arbitration notice. Hence, this petition.

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A notice was issued to the respondent. Despite service of notice, the respondent remained unrepresented.

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NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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Heard the arguments of learned counsel for the petitioner.

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Learned counsel for the petitioner submits that the petitioner and the respondent entered into a Authorized Distribution Agreement, and the petitioner delivered its products to the respondent as per its demand from time to time. The respondent is liable to pay a sum of Rs.59,82,701/- (Rupees Fifty Nine Lakhs Eighty Two Thousand Seven Hundred and One only). Despite the petitioner's request, the respondent did not pay the amount. The petitioner invoked an arbitration clause by issuing a notice on 15.05.2024 under Section 21 of the Act of 1996. The respondent did not reply. Hence, he submitted that there is an arbitration clause in the Authorized Distribution Agreement and the dispute must be resolved through arbitration. Hence, he prays to allow the petition.

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6 - NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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Perused the records, and considered the

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submissions of the learned counsel for the petitioner.

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The point, that arises for consideration is as

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follows:

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" Whether the petitioner has made out a ground to refer the dispute to the Arbitrator in terms of clause 15(g) contained in the Authorized Distribution Agreement dated 25.07.2016 as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules?"

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There is no dispute regarding the execution of an Authorized Distribution Agreement dated 25.07.2016 vide Annexure-A and the petitioner has appointed the respondent as an Authorized Distributor for selling, distributing, and marketing company's “3M” brand products. The petitioner delivered its products as per the demand made by the respondent, from time to time. The respondent did not pay the amount due. The petitioner

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NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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issued a notice dated 12.02.2024 vide Annexure-C calling

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upon the respondent to pay the outstanding dues.

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Despite the service of notice dated 12.02.2014, the respondent did not pay the outstanding dues. The petitioner issued an arbitration notice and invoked an arbitration clause.

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perused the Authorized Distribution Agreement dated 25.07.2016, which provides an arbitration clause i.e., clause 15(g).

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Accordingly to clause 15(g) of the Agreement, the parties shall attempt to resolve, through good faith and consultation, disputes arising in connection with this Agreement, and such consultation shall begin promptly after a Party has delivered to another party a written request for such consultation. Without prejudice to the provisions hereof, in the event of any dispute, difference, conflict or question arising between the Parties hereto relating to or concerning or arising out of this Agreement,

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8 - NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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the same shall be referred to arbitration, which shall be held in English and at Bangalore. Admittedly, the petitioner has invoked an arbitration clause by issuing a notice dated 15.05.2024, vide Annexure-D, proposing the name of an arbitrator. The said arbitration notice was served on the respondent.

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Despite service of the notice, the respondent did not reply to the arbitration notice. Admittedly, the parties to the petition have executed an Authorized Distribution Agreement dated 25.07.2016, and the dispute harasses between the parties to the petition, and the same has to be resolved through arbitration, in view of the arbitration clause in the Authorized Distribution Agreement. Thus, the petitioner has made out a ground to refer the arbitral dispute to the Arbitrator.

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In view of the above discussion, I answer the point for consideration in the affirmative.

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Accordingly, I proceed to pass the following:

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NC: 2025:KHC:23417 CMP No. 373 of 2024

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HC-KAR

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ORDER

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i. The Civil Miscellaneous petition is allowed .

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ii. Smt. Premavati Managoli, District Judge (Retired) is nominated as the sole Arbitrator to resolve the dispute between the parties to the petition, in terms of clause 15(g) of the Authorized Distribution Agreement dated 25.07.2016 as per the provisions of the Arbitration and Conciliation Act, 1996, and the Rules.

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iii. The office is directed to communicate this order to the learned sole Arbitrator, and the Arbitration and Conciliation Centre, Bengaluru.

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iv. Pending applications, if any, stand disposed off.

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Sd/(ASHOK S.KINAGI) JUDGE

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PK

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List No.: 1 Sl No.: 17, CT: BHK

3M India Ltd. v. M/S Im Traders

Case brief

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3M India Ltd. v. M/S Im Traders

Case brief

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