The Court appointed a sole arbitrator to adjudicate disputes arising from an Investment Agreement containing a valid arbitration clause, noting the respondent's failure to respond to the notice under Section 21 of the Arbitration and Conciliation Act, 1996.
Appointment of Mr. J. Sivanandaraaj, Advocate, as Sole Arbitrator.
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Arb.O.P.(Com.Div.)Nos.49 and 50 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.03.2024
CORAM
THE HONOURABLE MR.JUSTICE C.SARAVANAN
Arb.O.P.(Com.Div.)Nos.49 and 50 of 2024 and
Arb.Appln.Nos.616 and 617 of 2023
Easa Krupa Engineering Private Limited, represented by its Director Rathish Jayapal, G1, Land Marvel Apartment, 1st Street, Sriram Nagar, Thiruvanmiyur, Chennai – 600 041. .. Petitioner in both Original Petitions
Vs.
ACTC Studio Private Limited, Represented by its Director Mr.Raja Hemanth No.5/46, 3rd Street, AC Block, 6th Main Road, Anna Nagar, Chennai – 600 040. .. Respondent in both Original Petitions
Prayer in both Original Petitions : Original Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, praying to appoint a Sole Arbitrator to adjudicate the dispute between the respondent and the petitioner company arising in connection/or out of the Investment Agreement dated 14.06.2023 and to direct the respondents to pay costs.
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For Petitioner : Mr.B.Arvind Srevasta (in both Petitions) For Respondent : M/s.A.Asif Basha (in both Petitions)
COMMON ORDER
These Original Petitions have been filed to appoint a Sole
Arbitrator to adjudicate the dispute between the respondent and the petitioner company arising in connection/or out of the Investment Agreement dated 14.06.2023.
“12.Any Claim, dispute or difference relating to or arising out of this agreement shall be referred to the arbitration, of a sole arbitrator. Without prejudice to any other rights available to the Investor under any other statue to take action against the Borrower, any dispute or difference or claim that arises between parties or any of them concerning this Agreement or any condition herein as to the rights, duties or liabilities of parties hereto shall be referred to Arbitration appointed by the Investor according to the provisions of Section 29B(3)(Fast Track Arbitration) Arbitration and Conciliation Act, 1996 and rules thereunder and any amendment thereto from time to time. All proceedings shall be conducted in English.
13.It is agreed between the parties hereto that nothing
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contained in Section 17 of Arbitration and Conciliation Act, 1996 shall in any way, affect the right of any of or prejudice the parties to/from seek/seeking such interim relief/in an court of competent jurisdiction, including interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, and the rule framed thereunder, if in the opinion of the party seeking relief, such application for interim relief/s is necessary order to protect the rights of the party seeking relief under arbitration.
14.The award of the Arbitrator shall be in English and shall be a written award and shall be final, conclusive and binding on all the parties whether on question of law or of fact.
15.In the event of death, refusal, negligence, inability, incapability of the persons so appointed to act as the Arbitrator a new arbitrator shall be appointed;
16.The venue of arbitration shall be Chennai or such other place as may be determined at the sole discretion of the Investor and courts in Chennai or such other place shall have exclusive jurisdiction.
17.The agreement shall be subject to the jurisdiction of the courts of Chennai and shall be subject to the laws applicable in India.”
Arbitration and Conciliation Act, 1996 on 07.11.2023 in respect of the alleged breach committed by the respondent. However, both the notices have not evoked any response from the respondent. Hence, these Original Petitions have been filed. Despite notice on the respondent, the respondent had not filed any counter, filed only applications in Arb.Appln.Nos.616 and 617 of 2023.
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submission is made by the learned counsel for the respondent, the dispute
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is not arbitrable. It is open for the respondent to move suitable application before the learned Arbitrator under Section 16 of the Act, to determine the jurisdiction to decide the dispute under the Arbitration and Conciliation Act, 1996.
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Arb.O.P.(Com.Div.)Nos.49 and 50 of 2024
other incidental charges to the Arbitrator and later recover the same from the respondent.
at Chennai.
observations, leaving the parties to bear their own costs.
06.03.2024
jas
Index : Yes / No Internet : Yes / No Neutral Citation : Yes / No
C.SARAVANAN, J.
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Arb.O.P.(Com.Div.)Nos.49 and 50 of 2024
jas
Arb.O.P.(Com.Div.)Nos.49 and 50 of 2024 and Arb.Appln.Nos.616 and 617 of 2023
06.03.2024
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1 issue framed by the court
Whether the dispute arising out of the Investment Agreement is arbitrable and whether an arbitrator should be appointed.
7 provisions across 1 enactments
Easa Krupa Engineering Private Limited
ACTC Studio Private Limited
C.Saravanan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
