Disposed

Mr.Sukhvinder Singh v. Mahindra and Mahindra Financial Services Ltd.

Madras HC1 Mar 2022Arb O.P(COM.DIV.)/236/2021

Case brief

AI extract

What is this about?

The court disposed of petitions to terminate the arbitrator's mandate held under Section 11 of the Arbitration Act. Finding the award date existed but petitions relied on failure of service and notice, the court preserved rights to challenge under Section 34 and fixed the filing date for limitation purposes.

What did the court decide?

Petitions disposed; relief to challenge award under Section 34; petitioners' rights to assail award inter alia under Section 34 preserved; limitation date fixed.

Mr.Sukhvinder Singh Vs Mahindra and Mahindra Financial Services… — Arbitration | Madras HC (2022)

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated : 01.03.2022

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Coram

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THE HONOURABLE MR. JUSTICE M.SUNDAR

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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Mr.Sukhvinder Singh.

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Mrs.Saminder Kaur, Both residing at: Block F, 5^th Floor, Flat No. 502, Lokhra, NH 37, Near Hotel Bhargab Grand, Kamrup, Kamrup TLK, Assam-781 018.

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... Petitioners in all OPs

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vs.

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Mahindra and Mahindra Financial Services Ltd., Having its Registered Office at Gateway Building, Apollo Bunder, Mumbai-400 001.

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Mr.C.Madanagopal, Old No.25, New No.34, 1^st Floor, Karpagambal Nagar, Mylapore, Chennai 600 004.

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... Respondents in all OPs

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Prayer:

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Arbitration Original Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, to

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a) terminate the appointment of the Second Respondent by the First Respondent in the impugned Arbitration proceedings bearing Ref Nos.AUG-

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https://www.mhc.tn.gov.in/judis 1/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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2020-NPA-P1/6027019/JR_W127/2020 for the loan agreement No.6027019 dated 22^nd February 2019, AUG-2020-NPA-P1/5721681/JR_W62/2020 for the loan Agreement No.5721681 dated 13^th October 2018, AUG-2020-NPAP1/6032651/JR_W92/2020 for the loan Agreement No.6032651 dated 25^th February 2019, AUG-2020-NPA-P1/5962031/JR_W115/2020 for the loan Agreement No.5962031 dated 22^nd January 2019 and AUG-2020-NPAP1/5917333/JR_W148/2020 for the loan Agreement No.5917333 dated 29^th December 2018 respectively;

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b) appoint an independent Sole Arbitrator to adjudicate the disputes between the parties which arise out of loan agreement bearing Nos.6027019 dated 22^nd February 2019, 5721681 dated 13.10.2018, 6032651 dated 25^th February 2019, 5962031 dated 22^nd January 2019 and 5917333 dated 29^th December 2018 respectively.

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c) direct the respondents to pay the costs of this petition to the petitioner.

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For petitioner in all OPs : Mr.P.S.Sridhar Raj

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For respondent in all OPs : Mr.A.Prabhakaran for R1

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C O M M O N O R D E R

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This common order will govern the captioned five 'Arbitration Original Petitions' ('Arb.OPs' for the sake of brevity).

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Mr.P.S.Sridhar Raj, learned counsel for petitioners (two petitioners)

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in all the five captioned Arb.OPs is before this Virtual Court.

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https://www.mhc.tn.gov.in/judis 2/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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Mr.A.Prabhakaran, learned counsel with address for service at 50/103, 2nd Floor, Armenian Street, Chennai - 600 001 who is before this physical Court submits that he has entered appearance on behalf of the first respondent (claimant before the Arbitral Tribunal) and he has filed Vakalatnama in all the five captioned Arb.OPs on 28.02.2022 vide Diary Nos.6377, 6376, 6375, 6374 and 6373 of 2021.

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As regards the second respondent (to be noted, second respondent is the sole Arbitrator who constituted the Arbitral Tribunal), Registry was unable to serve notice on the second respondent. This has been recorded in the earlier proceedings dated 22.02.2022, which reads as follows:

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' Read this in conjunction with and in continuation of earlier

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proceedings made in the previous listing on 08.02.2022.

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2.As regards requisitioning of records from the Arbitral Tribunal, Registry has put up notes saying that the Arbitrator is not attending the office and therefore, Registry is unable to serve notice.

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3.Position regarding service on the first respondent is not clear. Registry to verify and do the needful in the next listing. List one week hence.

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4.List on 01.03.2022.'

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Captioned five Arb.OPs have been presented in this Court on

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30.09.2021 under Section 14(1)(a) read with Section 11(6) of 'The

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https://www.mhc.tn.gov.in/judis 3/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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Arbitration and Conciliation Act, 1996 (Act No.26 of 1996)', which shall hereinafter be referred to as 'A and C Act' for the sake of brevity. The prayer is for termination of mandate of the second respondent. The case of the petitioners (in a nutshell) is that they had no notice either about the invocation of the arbitration or the nomination of the Arbitrator (second respondent), the petitioners came to know about the arbitral proceedings only when they received interim orders dated 13.10.2020 made in C.M.Nos.185, 163, 175, 181 and 188 said to have been made by the second respondent purportedly under Section 17 of the A and C Act. There is a reference to a demand legal notice dated 04.09.2020 prior to this (paragraph 10 of the petition in the captioned Arb.OP) but copies of the same have not been placed before this Court.

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It may not be necessary to dilate any further on facts or grounds on which captioned Arb.OPs are predicated as learned counsel for first respondent submits on instructions that the second respondent (sole Arbitrator) has made a final award on 18.02.2021 itself which is prior to the date of presentation of captioned Arb.OPs. To be noted, as already alluded to supra, captioned Arb.OPs were presented in this Court on 30.09.2021.

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https://www.mhc.tn.gov.in/judis 4/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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Responding to the above, learned counsel for petitioners submits

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that the copies of the five arbitral awards have not been delivered to the petitioners notwithstanding the legal position that it is statutorily imperative vide sub-section (5) of Section 31 of A and C Act. This submission is recorded.

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Photocopies of the five arbitral awards (all dated 18.02.2021) placed

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before this Court by learned counsel for first respondent are as follows:

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https://www.mhc.tn.gov.in/judis 5/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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https://www.mhc.tn.gov.in/judis 11/32

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https://www.mhc.tn.gov.in/judis 13/32

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https://www.mhc.tn.gov.in/judis 14/32

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https://www.mhc.tn.gov.in/judis 17/32

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In the light of the narrative thus far, this Court is of the considered

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view that it would be appropriate to protect / preserve the rights of the

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https://www.mhc.tn.gov.in/judis 29/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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petitioners to assail the aforementioned five arbitral awards inter alia under Section 34 of A and C Act. If the petitioners take this route, for the present, this day (01.03.2022) will be taken as the reckoning date for computation of limitation under Section 34(3) of the A and C Act owing to the assertion of leasrned counsel for petitioner as recorded in paragraph 4 supra but this is subject to rights and contentions of the first respondent. This is only for the limited purpose of Section 34 petitions being brought on Board before this Court. This Course is being adopted in this case particularly owing to the fact that the Court notice sent to the second respondent remains unserved for some time but was ultimately served and the endorsements qua Court notices read as follows:

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' Endorsement made on 21.12.2021

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https://www.mhc.tn.gov.in/judis 30/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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'Endorsement made on 25.02.2022

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However, the learned Arbitrator has not chosen to enter appearance or come before this Court.

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All questions are left open. To be noted, all questions including the question raised in the captioned Arb.OPs are left open to be canvassed in the possible Section 34 challenge to the aforementioned five arbitral awards. Though obvious, it is made clear that all the rights and contentions of both sides are preserved.

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Captioned five OPs are disposed of in the aforesaid manner. There shall be no order as to costs.

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01.03.2022

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Speaking/Non-speaking order Index : Yes / No gpa

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M.SUNDAR. J

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https://www.mhc.tn.gov.in/judis 31/32

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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gpa

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Arb O.P.(Com. Div.)Nos.236, 237, 238, 239 and 240 of 2021

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01.03.2022

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https://www.mhc.tn.gov.in/judis 32/32

Mr.Sukhvinder Singh v. Mahindra and Mahindra Financial Services Ltd.

Case brief

What is this about?

What did the court decide?

Mr.Sukhvinder Singh v. Mahindra and Mahindra Financial Services Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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