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Five Star Business Finance Limited v. Manne Bhanu Prasad

Madras HC13 Oct 2025Arb O.P(COM.DIV.)/442/2025

Case brief

AI extract

What is this about?

Keywords: Section 11 Arbitration and Conciliation Act 1996; appointment of sole arbitrator; loan agreement dated 25.11.2022; arbitration clause; Section 21 notice dated 12.02.2025; no reply; no consensus on arbitrator's name; respondents Manne Bhanu Prasad, Manne Narsavva, Manne Nadu Prasad, Manne Eshwar (Medak, Telangana) served but did not appear; arbitrator appointed: Ms.R.Balambigai Gowri, Advocate, Chennai; fees per MHCAC (Administrative Cost and Arbitrator's Fees) Rules 2017; Arb O.P(COM.DIV.) No. 442 of 2025; disposed with no order as to costs.

What did the court decide?

Appointment of Ms.R.Balambigai Gowri, Advocate, as sole Arbitrator to adjudicate the arbitral dispute between the parties, with sittings in Chennai; no order as to costs. ¶39

Five Star Business Finance Limited Vs Manne Bhanu Prasad — Arbitration | Madras HC (2025)

What the court decided

AI extract

Outcome

Appointment of Ms.R.Balambigai Gowri, Advocate, as sole Arbitrator to adjudicate the arbitral dispute between the parties, with sittings in Chennai; no order as to costs.

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Issue for consideration

Whether an arbitrator ought to be appointed under Section 11 of the Arbitration and Conciliation Act, 1996, the dispute arising out of a loan agreement dated 25.11.2022 containing an arbitration clause, arbitration having been invoked under Section 21 without any reply and without consensus between the parties on the arbitrator's name.

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Court's answer

Ms.R.Balambigai Gowri, Advocate, is appointed as sole Arbitrator to adjudicate the arbitral disputes arising between the parties, holding sittings at any venue in Chennai convenient to all concerned and rendering an award.

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Ratio / Principle

Fees of the sole Arbitrator shall be in accordance with the Madras High Court Arbitration Centre (MHCAC)(Administrative Cost and Arbitrator's Fees) Rules 2017.

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Key takeaways

The appointment proceeded on the footing that an arbitration clause existed in the contract forming the subject matter of the dispute and that the petitioner had invoked arbitration in accordance with it, the Section 21 notice having gone unanswered and no consensus existing between the parties on the arbitrator's name.ratio¶31

Detailed headnote1 paragraphs

Madras High Court (N. Anand Venkatesh J., 13-10-2025) — Section 11, Arbitration and Conciliation Act, 1996: On Five Star Business Finance Limited's petition for appointment of an arbitrator under a loan agreement dated 25.11.2022 containing an arbitration clause, the Court recorded that the petitioner had invoked arbitration by notice dated 12.02.2025 in compliance with Section 21, that no reply was received and no consensus existed between the parties on the arbitrator's name, and that the respondents, though served (affidavit of service filed), did not appear in person or through counsel. Appointing Ms.R.Balambigai Gowri, Advocate, as sole Arbitrator to hold sittings at any convenient venue in Chennai and render an award, with fees governed by the Madras High Court Arbitration Centre (MHCAC)(Administrative Cost and Arbitrator's Fees) Rules 2017, the Court disposed of the petition with no order as to costs.

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Arb O.P(COM.DIV.) No. 442 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 13-10-2025

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CORAM

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THE HONOURABLE MR JUSTICE N. ANAND VENKATESH Arb O.P(COM.DIV.) No. 442 of 2025

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Five Star Business Finance Limited Rep by its Legal Officer Mr.MadhuSandanSomeswaran, Registered Office at New No.27, Old No.4,Taylors Road,Kilpauk, Chennai-600010.

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Applicant(s)

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Manne Bhanu Prasad No.5,Jangarai Shenkaram Pet,Medak, Telangana-502255.

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2.Manne Narsavva No.5,jangarai Shenkaram Pet,medak, Telangana-502255.

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3.Manne Nadu Prasad No.5,jangarai Shenkaram Pet,medak, Telangana-502255.

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4.Manne Eshwar No.5,jangarai Shenkaram Pet,medak, Telangana-502255.

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Respondent(s)

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PRAYER

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To appoint an Arbitrators to decide the disputes and differences between the Petitioner and Respondent in terms of Loan Agreement

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

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Arb O.P(COM.DIV.) No. 442 of 2025

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dated 25.11.2022.

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For Applicant(s): Ms.Vinodhini Mathelene for Mr.P.H.Vinodh Pandian For Respondent:

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ORDER

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This petition has been filed under Section 11 of the

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Arbitration and Conciliation Act, 1996 [for brevity hereinafter referred to as the “Act”] for appointment of an Arbitrator.

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When the matter came up for hearing on 29.07.2025, this Court passed the following order:-

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This petition has been filed under Section 11 of the Arbitration and Conciliation Act, seeking for 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 dated 25.11.2022. In the said agreement, there exists an arbitration clause, which is extracted hereunder:

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

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Arb O.P(COM.DIV.) No. 442 of 2025

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

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Arb O.P(COM.DIV.) No. 442 of 2025

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3. The petitioner has invoked arbitration in accordance with the arbitration clause by issuing notice to the respondents on 12.02.2025 to comply with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996. No reply has been received for the same.

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4. Since there exists an arbitration clause in the contract, which is the subject matter of the dispute between the parties and since the petitioner has invoked arbitration in accordance with the arbitration clause by complying with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996 and since there is no consensus between the parties with regard to the name of the arbitrator, this Court is issuing notice to the respondents, returnable by 21.08.2025. Private notice is also permitted.

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Notices were served on the respondents and the affidavit

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of service has also been filed before this Court. There is no appearance either in person or through counsel.

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Taking into consideration the materials placed before this

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Court and the earlier order passed by this Court on 29.07.2025, Ms.R.Balambigai Gowri, Advocate, at 148, 2^nd link beach road,

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

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Arb O.P(COM.DIV.) No. 442 of 2025

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Parrys, Chennai Mobile No.9840776464 is appointed as sole Arbitrator and the Arbitrator is requested to adjudicate the arbitral dispute that were arising between the parties by holding the sittings in any venue in Chennai to the convenience of all concerned and render an award. Fees of the sole Arbitrator shall be in accordance with the Madras High Court Arbitration Centre (MHCAC)(Administrative Cost and Arbitrator's Fees) Rules 2017.

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