Fuso Glass India Private Limited Vs Airflow Equipment (india)… — Arbitration | Madras HC (2025)

Fuso Glass India Private Limited Vs Airflow Equipment (india)… — Arbitration | Madras HC (2025)

What the court decided

AI extract

Outcome

Petition allowed as prayed: Mr. S. Venkatesan, Advocate appointed as sole arbitrator to adjudicate the dispute arising out of invoices dated between 30.12.2021 and 17.04.2023; arbitrator's fees per the 4th Schedule of the Arbitration and Conciliation Act, 1996 or as mutually consented, to be shared equally by the parties; arbitration to be conducted under the Act and completed within the prescribed time. (No costs direction was issued despite the prayer seeking costs from the respondent.)

Issue for consideration

Whether a sole arbitrator ought to be appointed by the Court under Section 11 of the Arbitration and Conciliation Act, 1996 to adjudicate the dispute between the petitioner and the respondent arising out of invoices dated between 30.12.2021 and 17.04.2023.

Court's answer

Since there was no consensus between the parties on the name of the arbitrator, the subject matter of the dispute (the invoices) contained an arbitration clause, and the petitioner had complied with the statutory requirement of issuing notice under Section 21 of the Arbitration and Conciliation Act, the Court was bound to appoint an arbitrator.

Ratio / Principle

Mr. S. Venkatesan, Advocate (office at No.24, 3rd Avenue, Indira Nagar, Adyar, Chennai - 600 020) was appointed as the sole Arbitrator to decide the dispute between the petitioner and the respondent arising out of the invoices dated between 30.12.2021 and 17.04.2023.

Key takeaways

The Arbitrator's remuneration/fees shall be paid in accordance with the 4th Schedule of the Arbitration and Conciliation Act, 1996 or as per the mutual consent of both the parties, and both parties shall equally share the arbitrator's fees.ratio¶31
The Arbitrator shall conduct the arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and shall complete the arbitration within the specified time prescribed under the said Act.ratio¶38

Detailed headnote1 paragraphs

Madras High Court (Abdul Quddhose, J.) allowed Arb.O.P.(Com. Div.) No.320 of 2024 under Section 11 of the Arbitration and Conciliation Act, 1996 and appointed Mr. S. Venkatesan, Advocate as sole arbitrator. The dispute arose out of invoices dated between 30.12.2021 and 17.04.2023 raised by Fuso Glass India Pvt. Ltd. on Airflow Equipment (India) Pvt. Ltd.; condition No.4 of the invoices required disputes to be referred to arbitration by a sole arbitrator. The petitioner invoked arbitration by notice dated 15.01.2024, which was received by the respondent, but no consensus was reached on the arbitrator's name. No counter was filed, and the respondent's counsel (through video conferencing) stated there was no serious objection to allowing the petition. Holding that the invoices contained an arbitration clause and the petitioner had complied with the Section 21 notice requirement, the Court appointed the sole arbitrator, directed that fees follow the 4th Schedule of the Act or mutual consent and be shared equally, and that the arbitration be completed within the time prescribed by the Act.

Arb.O.P.(Com. Div.) No.320 of 2024

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 12.02.2025

CORAM

THE HON'BLE MR. JUSTICE ABDUL QUDDHOSE

Arb.O.P.(Com. Div.) No.320 of 2024

Fuso Glass India Pvt. Ltd. ... Petitioner

Vs.

Airflow Equipment (India) Pvt. Ltd. ... Respondent

PRAYER: Petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 to appoint a sole arbitrator to adjudicate the dispute between the petitioner and the respondent and to direct the respondent to pay the cost.

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, seeking for appointment of an Arbitrator by this Court.

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

1/4

Arb.O.P.(Com. Div.) No.320 of 2024

There seems to be a dispute arising out of invoices raised by the petitioner on the respondent, which have been filed as documents along with this petition. The invoices are dated between 30.12.2021 and 17.04.2023. The terms and conditions of the invoices, more particularly condition No.4, stipulates that in case of any dispute, the dispute will have to be referred to arbitration by the appointment of a sole arbitrator.

The petitioner has invoked arbitration by issuing notice on

15.01.2024, calling upon the respondent to accept for arbitration. The said notice has been received by the respondent. Since there is no consensus between the parties with regard to the naming of the arbitrator, the petitioner has been constrained to file this petition under Section 11 of the Arbitration and Conciliation Act, seeking for appointment of an arbitrator by this Court.

Till date, no counter has been filed by the respondent. The learned

counsel appearing for the respondent through video conferencing would also submit that the respondent does not have any serious objection for allowing this petition.

2/4

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

Arb.O.P.(Com. Div.) No.320 of 2024

Since there is no consensus between the parties with regard to the

name of the arbitrator and the subject matter of the dispute viz., the invoices, also contains an arbitration clause and further, the petitioner having complied with the statutory requirement of issuing notice as per Section 21 of the Arbitration and Conciliation Act, this Court will have to necessarily appoint an arbitrator.

Accordingly, this Arbitration Original Petition is allowed as prayed

for by issuing the following directions:

(a) Mr. S. Venkatesan, Advocate , who is having office at No.24, 3rd Avenue, Indira Nagar, Adyar, Chennai - 600 020 (Mobile No.98410 41367) is appointed as the sole Arbitrator to decide the dispute between the petitioner and the respondent arising out of the invoices dated between 30.12.2021 and 17.04.2023;

(b) The Arbitrator shall be paid his remuneration / fees in accordance

with the 4th schedule of the Arbitration and Conciliation Act, 1996 or as per the mutual consent of both the parties;

(c) Both the parties shall equally share the arbitrator's fees;

3/4

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

Arb.O.P.(Com. Div.) No.320 of 2024

ABDUL QUDDHOSE. J.,

ab

(d) The Arbitrator shall conduct the arbitration in accordance with the

provisions of the Arbitration and Conciliation Act, 1996 and shall complete the arbitration within the specified time as prescribed under the said Act.

12.02.2025

Index : Yes/No Speaking Order : Yes / No Neutral Citation Case: Yes / No ab

Arb.O.P.(Com. Div.) No.320 of 2024

4/4

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