Mr.Venkatesan, Vs M/s.Shriram Finance Limited — Arbitration | Madras HC (2025)

Mr.Venkatesan, Vs M/s.Shriram Finance Limited — Arbitration | Madras HC (2025)

What the court decided

AI extract

Outcome

Court-brokered settlement: petitioners directed to pay Rs.7,50,000/- within 12 weeks towards full and final settlement to the 1st respondent in three equal monthly installments of Rs.2,50,000/- each (due 05.12.2025, 02.01.2026, 30.1.2026); petition disposed of and A.No.3413 of 2025 closed; full settlement completed and NOC issued on 03.02.2026; compliance recorded, no costs.

Issue for consideration

Whether the mandate of the Arbitrator (the 2nd respondent, arbitrator in Arb.Case No.21112/2024) should be terminated under Section 14(2) of the Arbitration and Conciliation Act, 1996 and any other appropriate person appointed as arbitrator. +1 more

Ratio / Principle

Proceeding on the Court's 31.10.2025 suggestion, the Court directed the petitioners to pay Rs.7,50,000/- within 12 weeks towards full and final settlement to the 1st respondent.

Key takeaways

The settlement sum was to be paid in three equal monthly installments of Rs.2,50,000/- each, on or before 05.12.2025, 02.01.2026 and 30.1.2026.ratio¶39
Arb.O.P(Com.Div).No.418 of 2025 was disposed of in the above terms and, consequently, A.No.3413 of 2025 was closed.ratio¶40
On 04.02.2026 the petitioner's counsel reported that the entire loan amount was settled and a No objection certificate had been issued by the respondent finance company on 03.02.2026 (copy placed before the Court), a fact confirmed by the respondent's counsel.

Detailed headnote1 paragraphs

Madras High Court (N. Anand Venkatesh J.), ARB O.P(COM.DIV.) No. 418 of 2025 and A.No.3413 of 2025, order dated 04-02-2026. Petition under Section 14(2) of the Arbitration and Conciliation Act, 1996 by three applicants (Venkatesan, Vijaya and Gokul of Chengalpattu) seeking termination of the mandate of the arbitrator (2nd respondent, Mr.P.Ganesan, retired District Judge) in Arb.Case No.21112/2024, arising out of a loan from M/s.Shriram Finance Limited (formerly Shriram City Union Finance Limited). On 31.10.2025 the Court suggested settlement at Rs.7,50,000/-; noting the petitioners had borrowed Rs.10,00,000/- in 2022 (48 EMIs ending 2026, Rs.6,58,000/- already paid, total receivable Rs.16,60,800/-), and that on 07.11.2025 the petitioners offered Rs.7,00,000/- while the finance company cited an earlier agreed figure of Rs.8,00,000/-, the Court proceeded on its suggestion and directed payment of Rs.7,50,000/- within 12 weeks towards full and final settlement in three equal monthly installments of Rs.2,50,000/- each due 05.12.2025, 02.01.2026 and 30.1.2026. The petition was disposed of in those terms and A.No.3413 of 2025 closed. On 04.02.2026 full repayment and issue of a No Objection Certificate by the finance company on 03.02.2026 were reported and confirmed; compliance was recorded and no costs were awarded. No express determination was made on termination of the arbitrator's mandate, the matter having been resolved through the settlement.

A No. 3413 of 2025

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04-02-2026

CORAM

THE HONOURABLE MR JUSTICE N. ANAND VENKATESH

ARB O.P(COM.DIV.) NO. 418 OF 2025 and A No.3413 of 2025

Mr.Venkatesan, S/o.Mr.Thiruvengadam

Mrs.Vijaya, W/o.Mr.Venkatesan,

Mr.Gokul, S/o.Mr.Venkatesan All of them residing at No.111, Lakshmi Narayana Perumal Koil Street, Paranur Village and Post, Chengalpattu Taluk and District - 603 002.

Applicant(s)

Vs

M/s.SHRIRAM FINANCE LIMITED, (Formerly known as Shriram City Union Finance Limited), Represented by its Authorised Signatory Mr.Santhosh Kumar J.Regional Manager S/o.Mr.Jothimani P. Having office at Sri Towers,Plot No.14A,South Phase, Industrial Estate,Guindy, Chennai-600032.

2.Mr.P.Ganesan District Judge (retd), Old

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

A No. 3413 of 2025

No.156,new No.319,1st Floor, Linghi Chetty Street, Chennai-600001.

Respondent(s)

PRAYER

Petition filed under Section 14(2) of the Arbitration and Conciliation

Act, 1996 praying to terminate the arbitrator i.e. the 2nd respondent

in Arb.Case No.21112/2024 and appoint any other appropriate person

as arbitrator b)direct the respondent to pay costs

For Applicant(s): Mr.M.Padmanaban For Respondent: Mr.K.Santhosh Kumar

ORDER

This petition was filed under Section 14(2) of the Arbitration and Conciliation Act, 1996 for the termination of the

mandate of the Arbitrator.

When the matter came up for hearing on 31.10.2025, this Court passed the following order:-

After hearing both sides, this Court suggested that the petitioners can pay a sum of Rs.7,50,000/- (Rupees Seven Lakhs and Fifty Thousand only) within a period of 12 weeks and the same can be accepted by the first respondent Finance Company and the loan account can be closed.

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A No. 3413 of 2025

2. This suggestion was made in view of the fact that the petitioners had borrowed a sum of Rs.10,00,000/- during the year 2022. The amount is repayable with interest in 48 EMIs which comes to an end in the year 2026. The petitioners have paid in all a sum of Rs.6,58,000/- (principle + interest). The total amount which the first respondent will be receiving towards the entire principle and interest is Rs.16,60,800/-.

3. Considering the above suggestion that was made by this Court, the first respondent shall take instructions and report this Court on 07.11.2025.

The matter was again listed for hearing on 07.11.2025 and

the following order came to be passed by this Court:-

When the matter was taken up for hearing today, the learned counsel for the petitioners submitted that the petitioners are willing to pay a sum of Rs.7,00,000/- within a period of 12 weeks. Per contra, the learned counsel for the 1st respondent submitted that earlier the petitioners had agreed for settlement of a sum of Rs.8,00,000/- and they had sought for 8 months time.

2.Considering the above submissions, this Court is inclined to proceed further with the earlier order passed on 31.10.2025. Accordingly, there shall be a direction to the petitioners to pay a sum

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A No. 3413 of 2025

of Rs.7,50,000/- within a period of 12 weeks from today towards full and final settlement to the 1st respondent. The said amount shall be paid in three equal monthly installments. The first installment of Rs.2,50,000/- shall be paid on or before 05.12.2025. The second installment of Rs.2,50,000/- shall be paid on or before 02.01.2026. The third and final installment of Rs.2,50,000/- shall be paid on or before 30.1.2026.

3.This Arb.OP(Com.Div).No.418 of 2025 is disposed of in the above terms. Consequently, A.No.3413 of 2025 is closed.

4.Post this petition under the caption 'for reporting compliance' on

02.02.2026.

When the matter was taken up for hearing today, the learned counsel for the petitioner submitted that the entire loan amount was settled and No objection certificate was also issued by the respondent finance company on 03.02.2026. A copy of the same was also placed before this Court. This fact was also confirmed by the learned counsel for the respondent.

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A No. 3413 of 2025

5.

In view the above, compliance is recorded. No costs.

04-02-2026

rka

Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No

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

A No. 3413 of 2025

To

1.M/s.SHRIRAM FINANCE

LIMITED, (Formerly known as Shriram City Union Finance Limited), Represented by its Authorised Signatory Mr.Santhosh Kumar J.Regional Manager S/o.Mr.Jothimani P. Having office at Sri Towers,Plot No.14A,South Phase, Industrial Estate,Guindy, Chennai-600032.

2.Mr.P.Ganesan District Judge (Retd), Old No.156,New No.319,1st Floor, Linghi Chetty Street, Chennai-600001.

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

A No. 3413 of 2025

N.ANAND VENKATESH J. rka

ARB O.P(COM.DIV.) NO. 418 OF 2025

04-02-2026

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