M/S.Mercedes - Benz Financial Services India Pvt. .Ltd., Vs Uruz… — Arbitration

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Arb.O.P.(Com.Div.) No. 329 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 26.08.2025

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CORAM

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THE HON'BLE Mr. JUSTICE ABDUL QUDDHOSE

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Arb.O.P.(Com.Div.) No. 329 of 2025

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M/s. Mercedes – Benz Financial Services India Pvt. Ltd., (formerly known as M/s.Daimler Financial Services India Pvt. Ltd.,) 5^th 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 ... Petitioner

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... Petitioner

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Vs.

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1.Uruz Corporate Services Private Limited, H5, 10 th Main 1 st Cross Indira Nagar, Bangalore – 560 038.

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2.Madhavan Vaiyapuri 3.Vijai Babu Madhavan ... Respondents

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Prayer : 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 Loan Agreement and Unattested Deed of Hypothecation dated 09.09.2021 in respect of Contract No.10145837.

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For Petitioner : Mr. M. Arunachalam

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For Respondents : Set exparte

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

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Arb.O.P.(Com.Div.) No. 329 of 2025

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O R D E R

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As directed by this Court on 21.08.2025, the petitioner has effected substituted service on the respondents by effecting paper publication. The paper publication has been filed along with the affidavit of service. The names of the respondents are also printed in the cause list today. The respondents remain unrepresented. Hence, the respondents are set ex parte by this Court.

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

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There seems to be a dispute between the petitioner and the respondents arising out of the loan agreement and unattested deed of hypothecation dated 09.09.2021. The petitioner has already recalled the loan through its loan recall notice dated 17.12.2024. There exists an arbitration clause in the loan agreement and unattested deed of hypothecation dated 09.09.2021 and the same is reproduced hereunder:-

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“Dispute Resolution: All claims and disputes arising under or relating to this Loan Agreement, its interpretation,

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

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Arb.O.P.(Com.Div.) No. 329 of 2025

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performance, termination of this Agreement or otherwise in connection with this Agreement (“Dispute”) shall be referred to an Arbitration under the Arbitration and Conciliation Act, 1996, as may be amended from time to time, or any re-enactment thereof, to a Sole Arbitrator appointed by Lender. The Arbitration proceedings, any order passed thereto by the Arbitrator including the Award, either interim or final, shall be binding on the parties and shall be conducted in English. It is also expressly agreed by the parties that the place of Arbitration shall be exclusively at Chennai, Tamil Nadu or any other state as may be intimated by the Lender. Any decision or award as a result of any such arbitration proceeding 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 attorneys' fees. The arbitration proceeds shall include a written record of the arbitration hearing.”

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The petitioner has invoked arbitration in accordance with the arbitration clause by issuing notice to the respondents on 25.04.2025 to

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comply with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996. The respondents have chosen not to send any reply to the arbitration invocation notice dated 25.04.2025.

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Since there exists an arbitration clause in the contract which is

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

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Arb.O.P.(Com.Div.) No. 329 of 2025

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the subject matter of the dispute between the parties and since the petitioner has complied with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996 and since the respondents have been set ex parte by this Court, this Court has to necessarily appoint an arbitrator, as prayed for, in this petition.

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6. Accordingly, this Arbitration Original Petition is allowed as prayed for by issuing the following directions:

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a) Mr.Pawan Jhabhak, Advocate who is having Office at No.115, Luz Church Road, 1 st Floor, Mylapore, Chennai – 600 007, (Mobile No.9176663600) is appointed as the Sole Arbitrator to adjudicate the dispute between the parties arising out of the loan agreement and unattested deed of hypothecation dated 09.09.2021.

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(b) The Arbitrator shall be paid his remuneration / fees in accordance with the 4 th Schedule of the Arbitration and Conciliation Act, 1996 or as per the mutual consent of both the parties;

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