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M/S. Mercedes Benz Financial Services India Pvt. Ltd. v. Annapuran Constructions

Madras HC3 Apr 2025Arb O.P(COM.DIV.)/34/2025

Case brief

AI extract

What is this about?

Section 11 Arbitration and Conciliation Act 1996 appointment of arbitrator; Arb.O.P (Com.Div.) No. 34 of 2025; Madras High Court; Abdul Quddhose J; Leela R vs M/s.Cheran Properties Limited Coimbatore; Appointment Letter dated 09.08.2024; Clause 23 Dispute Resolution; Nani Palkhivala Arbitration Centre Chennai; Section 21 notice dated 19.02.2025; no reply; no consensus on arbitrator; notice returnable 07.08.2025; matter posted 07.08.2025.

What did the court decide?

Interim direction only: notice issued to the respondent through Court as well as privately, returnable by 07.08.2025; matter posted on 07.08.2025. Appointment of the arbitrator not yet decided. ¶22

M/S. Mercedes Benz Financial Services India Pvt. Ltd. Vs… — Arbitration | Madras HC (2025)

What the court decided

AI extract

Outcome

Interim direction only: notice issued to the respondent through Court as well as privately, returnable by 07.08.2025; matter posted on 07.08.2025. Appointment of the arbitrator not yet decided.

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Issue for consideration

Whether the Court should appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 for disputes arising out of the Appointment Letter dated 09.08.2024, which contains an arbitration clause, there being no consensus between the parties with regard to the name of the arbitrator.

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Court's answer

There exists an arbitration clause in the Appointment Letter dated 09.08.2024, which is the subject matter of the contract between the parties, and there is no consensus between the parties with regard to the name of the arbitrator.

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Ratio / Principle

On the existence of the arbitration clause and the absence of consensus on the arbitrator's name, the Court issued notice to the respondent through Court as well as privately, returnable by 07.08.2025, and posted the matter on 07.08.2025.

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Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 - Section 11 petition (Arb.O.P (Com.Div.) No. 34 of 2025, Madras High Court, Abdul Quddhose, J., order dated 14.07.2025) - Petitioner Leela R, an employee of respondent M/s.Cheran Properties Limited, Coimbatore, alleges breach of the Appointment Letter dated 09.08.2024, which contains Clause 23 (Dispute Resolution) referring disputes to the Nani Palkhivala Arbitration Centre, Chennai, with seat and venue at Chennai, proceedings in English, and the award final and binding - Petitioner invoked arbitration by notice dated 19.02.2025 under Section 21 of the Act; no reply was received; no consensus existed between the parties on the arbitrator's name - Held: an arbitration clause exists in the Appointment Letter, which is the subject matter of the contract between the parties; notice was issued to the respondent through Court as well as privately, returnable by 07.08.2025, and the matter was posted on 07.08.2025.

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Arb.O.P (Com.Div.) No. 34 of 2025

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Arb.O.P (Com.Div.) No. 34 of 2025

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ABDUL QUDDHOSE, J.

Leela R

...Petitioner

vs.

M/s.Cheran Properties Limited, Coimbatore. ...Respondent

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For petitioner : Mr.Akbar Badusha ------

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This petition has been filed under Section 11 of the Arbitration and

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Conciliation Act, 1996 seeking for appointment of an arbitrator.

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There seems to be a dispute between the petitioner and the respondent arising out of the Appointment Letter, dated 09.08.2024 issued by the respondent in favour of the petitioner. So, the petitioner is an employee of the respondent. According to the petitioner, the respondent has committed the breach of Appointment Letter, dated 09.08.2024. There exists an arbitration clause in the Appointment Order dated 09.08.2024 and the same is extracted hereunder :-

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“23. Dispute Resolution The parties agree that any claim, dispute or difference relating to or arising out of this letter will be referred to the arbitration of the Nani Palkhivala Arbitration Centre currently functioning at New No.22, Karpagambal Nagar, Mylapore, Chennai –

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1/4

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

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Arb.O.P (Com.Div.) No. 34 of 2025

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600004, which will appoint the sole arbitrator and conduct the arbitration in accordance with its rules for conduct of arbitration proceedings then in force and applicable to the proceedings.

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The parties agree that such arbitration will be the sole and exclusive remedy between the parties with respect to all such disputes. The seat and venue of arbitration will be Chennai, Tamil Nadu and the proceedings will be conducted in English. The arbitration award will be final and binding on the parties.”

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The petitioner has already invoked arbitration in accordance with the arbitration clause by issuing notice to the respondent on 19.02.2025 to comply with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996. No reply has been received by the petitioner for the same. Since there is no consensus between the parties with regard to the name of the Arbitrator, this petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for appointment of an Arbitrator.

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Since there exists an arbitration clause in the Appointment Letter, which is the subject matter of the contract between the parties and since there is no consensus between the parties with regard to the name of the Arbitrator, this Court is issuing notice to the respondent, 2/4

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

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Arb.O.P (Com.Div.) No. 34 of 2025

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through Court as well as privately returnable by 07.08.2025.

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5. Post the matter on 07.08.2025.

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14.07.2025

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Maya