This order appoints a sole arbitrator under Section 11(5) of the Arbitration and Conciliation Act, 1996, to adjudicate disputes arising from a Letter of Intent between India Yamaha Motor Private Limited and the respondent.
Appointment of Mr. K. Balasubramanian as Sole Arbitrator with liberty to file claims under Section 23.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED 28.06.2017
CORAM
THE HONOURABLE DR.JUSTICE ANITA SUMANTH
O.P. No.881 of 2016
India Yamaha Motor Private Limited through its Authorized Signatory Anil Kumar
.. Petitioner
Prayer: Petition filed under Section 11(5) of the Arbitration & Conciliation Act, 1996 to appoint a Sole Arbitrator to adjudicate and decide the disputes between the parties herein and to grant liberty to the petitioner to file its claims in terms of Section 23 of the Arbitration and Conciliation Act, 1996 before the said Sole Arbitrator for adjudication and to direct the respondent to pay the cost of the petition.
For Petitioner : Ms.Inthu Karunakaran
For Respondent : Mr.A.Tamilvanan
O R D E R
This petition seeks appointment of a Sole Arbitrator to resolve
the disputes between the petitioner and respondent that have arisen pursuant to a Letter of Intent dated 02.08.2014.
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2.A Letter of Intent, dated 02.08.2014, was executed inter se the parties, for purchase of piece or parcel of land total admeasuring 15.36 grounds (36,864 sq.ft.) situated Opp. Bahwan Cybertek Tower, Near Perungudi Toll Plaza, Rajiv Gandhi Salai, Okkiyam, thoraipakkam, Perungudi, Chennai-600 097. The agreement contains an arbitration clause 10, which reads as under:
“10.In case of any dispute or claim arising out of or in connection with or relating to this Letter of Intent, the parties shall attempt to first resolve such dispute amicably. In the event no amicable resolution or settlement is reached within a period of thirty (30) days from the date of reference of such dispute, such dispute shall be referred to a sole arbitrator to be mutually appointed by the parties. The arbitration proceedings shall be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification/ amendment thereof.”
3.Disputes inter se the parties arose, resulting in the issuance
of a notice, through counsel, by the petitioner, dated 26.10.2015, invoking the arbitration clause. This was not replied to by the respondent. Insofar as the issue of arbitration is concerned, the only defence taken is that the Letter of Intent, dated 02.08.2014, has lost its enforceability.
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4.The agreement produced before the Court as well as the communications between the parties leaves no manner of doubt that the Letter of Intent, dated 02.08.2014 was executed between the parties and that contains the aforesaid arbitration clause. The existence of disputes can also not be doubted. In fact, both parties are claiming amounts as against each other.
5.When the matter was called for hearing today, learned
counsel for the petitioner would suggest the nomination of Mr.K.Balasubramanian, District Judge/Registrar General High Court (Retired) as the Sole Arbitrator.
6.Mr.A.Tamilvanan, learned counsel appearing for the respondent agrees to the nomination.
7.I thus appoint Mr.K.Balasubramanian, District Judge/Registrar General – High Court (Retired), residing at Door No.33A, Block No.52,
Jeevan Bheema Nagar (LIC Colony), Anna Nagar West Extension, Chennai 600 001, as the Sole Arbitrator to enter upon reference and adjudicate the disputes inter se the parties and after issuing notice to the parties and upon hearing them, pass an award as expeditiously as possible, preferably within a period of six months from the date of receipt of this order. The learned Arbitrator is
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Dr.ANITA SUMANTH,J.
vga
at liberty to fix his remuneration and other incidental expenses,
which shall be borne by both the parties equally. The proceedings
may be conducted under the aegis of the Madras High Court
Arbitration Centre in accordance with the Madras High Court
Arbitration Rules.
8.The Original Petition is accordingly allowed leaving the
parties to bear their own costs.
28.06.2017
vga
O.P. No.881 of 2016
2 issues framed by the court
Whether the petitioner is entitled to an appointment of a sole arbitrator under the arbitration clause in the Letter of Intent.
Whether the respondent's objection regarding the unenforceability of the Letter of Intent precludes the appointment of the arbitrator.
2 provisions across 1 enactments
India Yamaha Motor Private Limited
Respondent
Anita Sumanth
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
