Mr.a.Mohamed Rafique Vs Mr.Uthayakumar — Madras HC (2025) — LawSathi Research

Mr.a.Mohamed Rafique Vs Mr.Uthayakumar — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Both petitions disposed of in terms of the settlement agreement dated 09.09.2025, which shall form part of the order; each of the respective parties directed to pay Rs.1,50,000/- to the learned Mediator; connected application (Application Nos.6152 of 2024) closed.

Issue for consideration

Whether the arbitral award dated 10.07.2024 passed by the learned Arbitrator in Arbitration Reference No.25 of 2018 in O.P.No.962 of 2018 should be set aside — in its entirety in Arb.O.P.(Com.Div.)No.502/2024, and insofar as it awards penal interest @ 24% per annum from 19.01.2017 till realisation on the sum of Rs.36,40,000/- in Arb.O.P.(Com.Div.)No.554/2024.

Court's answer

Both Arb.O.P.(Com.Div.)Nos.502 and 554 of 2024 are disposed of in terms of the settlement agreement dated 09.09.2025 arrived at through mediation, and the settlement agreement shall form part of the order; the connected application stands closed. The Court records no merits adjudication on the challenge to the award or on the 24% penal interest.

Ratio / Principle

There shall be a direction to the respective parties to pay a sum of Rs.1,50,000/- (Rupees One lakh fifty thousand only) each to the learned Mediator.

Detailed headnote1 paragraphs

Madras High Court, Commercial Division (N. Anand Venkatesh, J.), common order dated 11.09.2025 in Arb.O.P.(Com.Div.)Nos.502 and 554 of 2024 and Application Nos.6152 of 2024. Cross-petitions sought setting aside of an arbitral award dated 10.07.2024 of the learned Arbitrator in Arbitration Reference No.25 of 2018 in O.P.No.962 of 2018: in toto in Arb.O.P.(Com.Div.)No.502/2024, and confined to penal interest @ 24% per annum from 19.01.2017 till realisation on Rs.36,40,000/- in Arb.O.P.(Com.Div.)No.554/2024. By order dated 16.07.2025 the Court referred the dispute to mediation before Mr.M.K.Kabir, learned Senior Counsel; the parties executed a settlement agreement dated 09.09.2025, signed by the parties, their counsel and the Mediator, and placed before the Court. Held: both petitions disposed of in terms of the settlement agreement, which forms part of the order; connected application closed; each party directed to pay Rs.1,50,000/- to the learned Mediator. The disposal is consensual; the order contains no merits adjudication on the validity of the award or the legality of the 24% penal interest.

Arbitration Application No.1292 of 2025

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 11.09.2025

CORAM

THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH

Arb.O.P(Com.Div).Nos.502 and 554 of 2024

and Application Nos.6152 of 2024

1.Mr.A.Mohamed Rafique, S/o.Mr.A.Abdul Rahim

Mr.A.Mohamed Abubaker, S/o.Mr.A.Abdul Rahim .... Petitioners in

Arb.O.P.(com.div)No.502/2024 and

respondents in Arb.O.P.(com.div)No.554/2024

Vs.

1.Mr.Uthayakumar, S/o.Mr.S.Chellaiah

Mr.C.Thadeyu Johnson, S/o.Mr.S.Chellaiah .... Respondents in

Arb.O.P.(com.div)No.502/2024 and Petitioners in Arb.O.P.(com.div)No.554/2024

Prayer in Arb.O.P.(com.div)No.502/2024

To set aside the award dated 10.07.2024 passed by the Learned Arbitrator in Arbitration Reference No.25 of 2018 in O.P.No.962 of 2018.

Prayer in Arb.O.P.(com.div)No.554/2024

To set aside the impugned award dated 10.07.2024 to the extent it awards penal interest @ 24% per annum from 19.01.2017 till realisation on the sum of Rs.36,40,000/-.

For Petitioners in : Mr.P.V.Balasubramaniam

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Arb.O.P.(com.div) Senior Counsel for No.502/2024 and Ms.Sharada Vivek respondents in Arb.O.P.(com.div)No.554/2024 For Respondents in : Mr.Joseph John in Arb.O.P.(com.div) for M/s.Lilly Francis No.502/2024 for M/s.King & Patridge and Petitioners in Arb.O.P.(com.div)No.554/2024

COMMON ORDER

These petitions were filed as against the award passed by the learned Arbitrator dated 10.07.2024.

This Court by an order dated 16.07.2025, requested Mr.M.K.Kabir, learned Senior Counsel to act as a Mediator in order to mediate the dispute between the parties and attempt for a settlement amicably. Pursuant to the order, the learned Senior Counsel acted as a Mediator and the parties were able to arrive at a settlement and they have entered into a settlement agreement dated 09.09.2025. The settlement agreement signed by both the parties and their respective counsel and also by the learned Mediator was placed before this Court.

The learned Mediator was also present at the time of hearing

today.

The terms and conditions agreed between the parties are

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Arbitration Application No.1292 of 2025

extracted hereunder:

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The learned Senior Counsel and the counsel appearing on behalf of the parties submitted that both these petitions can be disposed of in terms of the settlement agreement dated 09.09.2025.

In the light of the above development, both these petitions

are disposed of in terms of the settlement agreement dated 09.09.2025 and the settlement agreement shall form part of this order. Connected application stands closed.

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There shall be a direction to the respective parties to pay a

sum of Rs.1,50,000/- (Rupees One lakh fifty thousand only) each to the learned Mediator.

11.09.2025

mp

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Arbitration Application No.1292 of 2025

N.ANAND VENKATESH, J.

mp

Arb.O.P(Com.Div).Nos.502 and 554 of 2024 and Application Nos.6152 of 2024

11.09.2025

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