The Court appointed a sole arbitrator to adjudicate disputes arising from Loan Agreements under Section 11(6) of the Arbitration and Conciliation Act, 1996, upon mutual consent of the parties.
Appointment of Mr. M. Muthusamy, Senior Advocate, as sole arbitrator.
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.
Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 13.06.2024
CORAM
THE HON'BLE Mr. JUSTICE KRISHNAN RAMASAMY
Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
Arb.O.P.(Com.Div.)No.100 of 2024:
M/s.Mercedes – Benz Financial Services India Private Limited, (Formerly known as M/s.Daimler Financial Services India Private Limited) 5th Floor, Plot 8, Baashyam Willow Square, 9 & 10, First Street, Thiru Vi Ka Industrial Estate, Guindy, Chennai 600 032, Tamil Nadu, India, Represented by its Authorised Signatory, Sadam Hussain.S.
... Petitioner
Vs.
3.Frany Tushar Patel
... Respondent
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
Prayer:
Arbitration Original Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 to appoint a sole Arbitrator to adjudicate upon the differences and disputes between the parties under the said Loan cum Hypothecation Agreement and Deed of Guarantee both dated 10.01.2020 and supplemental agreement dated 31.12.2022 in respect of Contract Nos.20145877, 20145878 & 20145879.
For Petitioner in all petitions : Mr.M.Arunachalam For Respondents in all petitions : Mr.R.Satish Kumar (vakalath not filed)
COMMON ORDER
These Arbitration Original Petitions have been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, (hereinafter called as “the Act”) to appoint a sole Arbitrator to adjudicate the dispute between the petitioner and the respondent.
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
petitions, the 1st respondent approached the petitioner for loan facilities and
entered into loan agreements on various dates, as mentioned below:
| S.No | Petitions | No. of Contracts | Agreement date |
|---|---|---|---|
| 1 | Arb.O.P.(Com.Div.)No.100/2024 | 3 | 10.01.2020 |
| 2 | Arb.O.P.(Com.Div.)No.101/2024 | 5 | 17.04.2021 |
| 3 | Arb.O.P.(Com.Div.)No.102/2024 | 2 | 10.01.2020 |
| 4 | Arb.O.P.(Com.Div.)No.103/2024 | 7 | 22.06.2021 |
| 5 | Arb.O.P.(Com.Div.)No.104/2024 | 3 | 10.01.2020 |
| 6 | Arb.O.P.(Com.Div.)No.110/2024 | 4 | 10.01.2020 |
| 7 | Arb.O.P.(Com.Div.)No.111/2024 | 2 | 10.01.2020 |
| 8 | Arb.O.P.(Com.Div.)No.112/2024 | 5 | 27.12.2019 |
| 9 | Arb.O.P.(Com.Div.)No.113/2024 | 8 | 08.04.2021 |
loan amount by the 1st respondent. With regard to the same, the petitioner sent notices dated 29.11.2023 under Section 21 of the Act to the 1st respondent, for which, the 1st respondent sent replies dated 17.12.2023. However, the parties had not arrived at any consensus with regard to the appointment of Arbitrator.
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
out of the Loan Agreements, is arbitrable in terms of respective Arbitration Clause of the said Agreements and thus, this petition has been filed for appointment of Arbitrator.
the submission made by the learned counsel for the petitioner and requests this Court to appoint a sole Arbitrator.
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
Clause 85 of the Loan Agreements in Arb.O.P.(Com.Div.) Nos.100, 101, 103, 110, 112 & 113 of 2024
“85. All claims and disputes arising under or relating to this loan agreement are to be settled by binding arbitration in the state of Tamil Nadu, specifically Chennai or another location as desired by the lender. The arbitration shall be conducted on a confidential basis and shall be subject to the Arbitration and Conciliation Act 1996 of India. Any decision or award as a result of any such arbitration proceedings shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses and reasonable attorney's fees. Any such arbitration shall be conducted by single arbitrator appointed by the lender. The arbitration proceeds shall include a written record of the arbitration hearing. The Parties reserve the right to object to any individual who shall be employed by or affiliated with a competing organization or entity. An award of arbitration may be confirmed in a court of competent jurisdiction".
Clause 66 of the Loan Agreements in Arb.O.P.(Com.Div.) Nos.102, 104, 111 of 2024
“66. All claims and disputes arising under or relating to this loan agreement are to be settled by binding arbitration in
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
the state of Tamil Nadu, specifically Chennai or another location as desired by the lender. The arbitration shall be conducted on a confidential basis and shall be subject to the Arbitration and Conciliation Act 1996 of India. Any decision or award as a result of any such arbitration proceedings shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses and reasonable attorney's fees. Any such arbitration shall be conducted by single arbitrator appointed by the lender. The arbitration proceeds shall include a written record of the arbitration hearing. The Parties reserve the right to object to any individual who shall be employed by or affiliated with a competing organization or entity. An award of arbitration may be confirmed in a court of competent jurisdiction".
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
order:
i) Mr.M.Muthusamy, Senior Advocate, No.277, Law Chambers, High Court Buildings, Chennai 600 104, Mobile No.94440 42965, is appointed as sole arbitrator to enter upon reference and adjudicate the disputes inter se the parties.
ii) The learned Arbitrator appointed herein, shall 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 the Order. The learned Arbitrator is also directed to decide the matter without influenced by the observations made by this Court in the present order.
iii) The learned Sole Arbitrator appointed herein shall be paid fees and other incidental charges, as per Schedule IV of the Act and the same shall be borne by the parties equally. In the event of non-appearance of the respondents, the petitioner shall bear the entire remuneration and other expenses and thereafter, the petitioner can recover the same directly from the respondent and vice versa.
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
leaving the parties to bear their own costs. Since this Court has appointed an Arbitrator, it is open to the petitioner as well as the respondents to seek other reliefs under the provisions of Arbitration and Conciliation Act 1996 before the Arbitrator.
13.06.2024
Speaking/Non-speaking order Index : Yes / No Neutral Citation: Yes / No nsa
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Arb.O.P (Com.Div.) Nos.100 to 104 & 110 to 113 of 2024
KRISHNAN RAMASAMY.J., nsa
Arb.O.P (Com.Div.)Nos.100 to 104 & 110 to 113 of 2024
13.06.2024
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1 issue framed by the court
Whether the dispute arising from the Loan Agreements is arbitrable and warrants the appointment of a sole arbitrator?
1 provisions across 1 enactments
M/s. Mercedes – Benz Financial Services India Private Limited
NTC Supply Chain Solutions Private Limited
Prratek Patel
Frany Tushar Patel
KRISHNAN RAMASAMY
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
