Allowed

M/S.Shriram City Union Finance Limited, Rep.by Its Authorised Signatory, Ms.Navinaa P.N. v. R.Uma

Madras HC12 Oct 2022Arb O.P(COM.DIV.)/430/2022

Case brief

AI extract

What is this about?

This order considers an arbitration petition to substitute a recused arbitrator. The petitioner sought appointment of a new arbitrator after the original withdrew due to disputes over interest rates and impartiality. The court allowed the petition and appointed a new arbitrator.

What did the court decide?

Petitioner's petition allowed; Mr. K. Ashok Kumar appointed as the new arbitrator to replace Dr. S. S. P. Darwesh.

M/S.Shriram City Union Finance Limited, Rep.by Its Authorised… — Arbitration | Madras HC (2022)

¶1

Arb.O.P.(Comm.Div.) No.430 of 2022

¶2

IN THE HIGH COURT OF JUDICATURE AT MADRAS

¶3

DATED: 12.10.2022

¶4

CORAM

¶5

THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY

¶6

Arb.O.P.(Comm.Div.) No.430 of 2022

¶7

M/s.Shriram City Union Finance Limited Represented by its Authorised Signatory Ms.Navinaa.P.N. A Company having its Branch office at: No.12, Ramaswamy Street, T.Nagar Chennai-600 017.

¶8

... Petitioner

¶9

vs.

¶10

1.R.Uma Wife of Mr.Baskaran

¶11

2.Mr.P.Baskaran Son of Mr.Perumal

¶12

3.Mr.B.Kabilan Son of Mr.P.Baskaran All at: No.2/80, T.V.K.Street Mundiyambakkam Villupuram-605 601. ... Respondents

¶13

1/5

¶14

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

¶15

Arb.O.P.(Comm.Div.) No.430 of 2022

¶16

PRAYER

¶17

PRAYER : Arbitration Original Petition filed under Section 15(2) of the Arbitration and Conciliation Act, 1996.

¶18

(a) Substitute the arbitrator appointed by the petitioner by appointing

¶19

any fit and competent person as an Arbitrator so as to adjudicate the claim and the dispute between the petitioner and the respondents under the Loan agreement dated 30.06.2018;

¶20

(b) Direct the respondents to pay the cost of the petition ; and

¶21

¶22

fit and proper under the circumstances of the case.

¶23

For Petitioner : Mr.R.Uma Shankar

¶24

For Respondents : Mr.P.Baskaran Mr.B.Kabilan (Party in person R2 & R3)

¶25

O R D E R

¶26

The petitioner seeks substitution of the arbitrator appointed earlier for the purpose of adjudicating the dispute between the petitioner and the respondents.

¶27

2.The respondents approached the petitioner for a loan and executed a

¶28

loan agreement dated 30.06.2018. On the ground that the obligations under

¶29

the said loan agreement were not discharged by the respondents, the

¶30

2/5

¶31

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

¶32

Arb.O.P.(Comm.Div.) No.430 of 2022

¶33

petitioner invoked the arbitration clause in the loan agreement and issued a notice under Section 21 of the Arbitration and Conciliation Act, 1996, on 19.10.2021. Pursuant thereto, the person appointed by the petitioner entered upon reference. The respondents herein raised objections to the adjudication of the dispute by the said arbitrator. In the said circumstances, by communication of 09.05.2022, the arbitrator recused from the proceedings. This necessitated the filing of the present petition.

¶34

3.Upon receipt of notice, the 2^nd and 3^rd respondents are present in person. The 2^nd respondent has filed a counter, which is labelled as written statement. The 1^st and 3^rd respondents have countersigned the said document for the purpose of adopting the same. In the said counter, the defene set up by the respondents is that the petitioner claimed exorbitant and unlawful interest which is punishable under the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003. The respondents also state that the persons appointed previously by the petitioner as arbitrator were undertaking multiple cases on behalf of the petitioner and that they lack impartiality .

¶35

3/5

¶36

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

¶37

Arb.O.P.(Comm.Div.) No.430 of 2022

¶38

4.The loan agreement undoubtedly contains an arbitration clause in Clause 18 thereof. As per Clause 19 r/w the schedule to the agreement, the parties have agreed that Courts in Chennai could exercise jurisdiction. As stated earlier, the arbitrator appointed by the petitioner earlier withdrew from the reference by communication dated 09.05.2022. In the said facts and circumstances, it is just and necessary to substitute the arbitrator with the person appointed by this Court.

¶39

5.Accordingly, Arb.O.P.(Comm.Div.) No.430 of 2022 is allowed by appointing Mr.K.Ashok Kumar, Advocate, New No.38, Old No.49, Padmanabha Nagar, 4^th Street, Adyar, Chennai-600020, (Mobile No.9444958093) as the arbitrator instead of Dr.S.S.P.Darwesh. The arbitrator is called upon to enter upon reference and adjudicate the dispute. The fees and expenses in relation to the arbitral proceedings shall be fixed by the arbitral tribunal in consultation with the parties.

¶40

12.10.2022

¶41

kp Index : Yes / No Internet : Yes / No

¶42

4/5

¶43

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

¶44

Arb.O.P.(Comm.Div.) No.430 of 2022

¶45

SENTHILKUMAR RAMAMOORTHY,J

¶46

¶47

Arb.O.P.(Comm.Div.) No.430 of 2022

¶48

12.10.2022

¶49

5/5

¶50

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

M/S.Shriram City Union Finance Limited, Rep.by Its Authorised Signatory, Ms.Navinaa P.N. v. R.Uma

Case brief

What is this about?

What did the court decide?

M/S.Shriram City Union Finance Limited, Rep.by Its Authorised Signatory, Ms.Navinaa P.N. v. R.Uma

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

Similar cases

R Srinivasan, S/o. Rathinasamy Nadar, Vs R Lenin, S/o. a.Rathinasamy

M/s.Vishwa-Syntharo Pharmachem Private Limited Vs M/s.Radiant Pharma

Bharat Heavy Electrical Ltd. Vs Capco Water Solutions Private Limited

M/s Daimler Financial Servics India Private Limited Vs Jayesh Thakarshi Patel and another

M/s. Swift Tech Engineers(India) Private Limited, Rep.by its Director P.M.Suresh Babu, Vs m/s.Bindhu Techflow Solutions Pvt. Limited

M/s.International Waste Management Pvt.Ltd., Rep.by its authorised signatory Vs M/s.Sara Plast Pvt. Ltd, Rep.by its authorised signatory