Allowed

M/s.Sri Karupiah Trading Company v. The Annai Steels

Madras HC10 Jun 2025Arb O.P(COM.DIV.)/548/2024

Case brief

AI extract

What is this about?

Petitioner sought appointment of a sole arbitrator under Section 11 of the Arbitration Act due to failure of parties to agree on one. Court issued substituted service notices, no respondents appeared. Court found valid arbitration clause and requisite service. Appointed former Judge M.Sathyanarayanan as sole arbitrator and directed equal fee sharing.

What did the court decide?

Court appointed Hon'ble Mr.Justice.M.Sathyanarayanan as sole arbitrator. Directing equal fee sharing and completion within statutory limit.

M/s.Sri Karupiah Trading Company Vs The Annai Steels — Arbitration | Madras HC (2025)

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Arb.O.P (Com.Div.) No.548 of 2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 10.06.2025

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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.548 of 2024

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M/s.Sri Karupiah Trading Company, Represented by its Proprietor Mrs.K.Renuka Devi W/o.Mr.T.Kulanchiyappan 17/1, 1^st Street, Alwarpet Teynampet, Chennai – 600 018.

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...Petitioner

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vs.

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1.The Annai Steels, Represented by its Partners, Mr.Rajesh, S/o.Janarthanam and Mrs.Kalaivani, W/o.Rajesh, S.No.315/1A1B, 318/4, Melveeeranam Road, Melveeranam Village, Vellore District – 632 505.

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2.Mr.J.Rajesh

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3.Mrs.Kalaivani

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4.M/s.Theeran Steel, Represented by its Proprietor, Mr.S.Pandiyan, S/o.V.Subramanian, S.No.315/1A1B, 318/4, Melveeeranam Road, Melveeranam Village,

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

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Arb.O.P (Com.Div.) No.548 of 2024

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Vellore District – 632 505.

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5.Mr.S.Pandiyan

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... Respondents

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Prayer : Arbitration Original Petition (Commercial Division) filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 praying to,

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a) Appoint a sole arbitrator for settlement of the dispute with the petitioner and respondents of the company namely M/s.Sri Karupiah Trading Company, M/s.Annai Steel and M/s.Theeran Steel.

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b) To award the costs of the petitioner and

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c) and pass such further orders as this Hon'ble Court deems fit and proper in the circumstances of the case.

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For petitioner : M/s.L.Karthiga For Respondents : Set ex-parte

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ORDER

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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 by this Court.

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As directed by this Court, Registry has printed the names of the

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respondents in the cause list today. Earlier, since the notice could not be 2/7

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

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Arb.O.P (Com.Div.) No.548 of 2024

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served on the respondents through postal service, the petitioner was directed to effect Substituted Service by effecting Paper Publication both in English and Tamil daily newspaper having wide circulation in the State of Tamil Nadu. The petitioner had also effected Substituted Service as per the directions of this Court. An Affidavit of Service, enclosing the paper publication has also been filed. Till date, no one has entered appearance on behalf of the respondents. Hence, the respondents are set ex-parte by this Court.

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There seems to be a dispute between the petitioner and the respondents arising out of the Memorandum of Understanding dated 15.12.2022. There exists an Arbitration Clause in the said Memorandum of Understanding and the same is extracted hereunder:

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“eLth gphpt:,e ; j g [ hpe ; Jzh ; t [ xg ; ge ; jj ; jpy ; ntW v' ; F tH'fg ; gl ; Ls ; ; sij jtpw. ,Ujug ; gf [ ; F ,ilapy ; ,z' ; fkhd j P ht ; vllglhtpl ; lhy ; ; . g [ hpe ; Jzh ; t [ xg ; ge ; jj ; jpd ; k P wy ; . Koj ; jy ; . bry ; YgoahFk ; my ; yJ epiwntw ; wg ; gLjy ; my ; yJ me ; je ; j chpikfis Mfpatw ; wpypUe ; J ve ; j xU rhr ; ; ir my ; yJ ntWgghl ; ; il bghWj ; jtiu

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3/7

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

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Arb.O.P (Com.Div.) No.548 of 2024

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; ; ; [ ; [ ; ;
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kw ; Wk ; ,Ujugg ; [ bghUg ; g [ fs ; my ; yJ g [ hpe ; Jzh ; t xg ; ge ; jj ; jpy ve ; j xU tpyf ; fKk ; my ; yJ ve ; j tpjj ; jpYk ; g [ hpe ; Jzh ; t [ xg ; ge ; jj ; ij bjhLtJ gpd ; dh ; ,Ujuggpy ; ; vGJk ; mwptpg ; gpd ; K : yk ; mj ; jifa rh ; ir my ; yJ ntWghl ; ilf ; Fwpg ; gplyhk ; . brd ; id cah ; e P jpkd ; wk ; K : yk ; epakpf ; fggl ; l xU eLtupd ; ; xnu eLth ; . eLth xU epahakhd tpUij epiwntw ; Wthh ; / nkYk ; eLthpd ; tpUij ,Ujugg ; [ fs ; k P J ,WjpahdJ/

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nkw ; TwpathW eLth ; kw ; Wk ; rkur rllk ; ; 1996d ; tpjpKiwfs ; my ; yJ rll ; Kiwahd khw ; w' ; fs ; my ; yJ mjd ; kWruikg P g ; fs [ ; kw ; Wk ; mjDld ; bra ; aggl ; l ; tpjpfs ; kw ; Wk ; eilKiwapy ; ,Uf ; Fk ; fhyk ; Mfpait ,e ; j gphptpd ; f P H ; eLth ; eltof ; iffSf ; F bghUe ; Jk ; . eLth ; tpUJf ; F Vw ; g eLth ; bryt [ Vw ; gLk ; /

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The petitioner has invoked Arbitration in accordance with the

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Arbitration Clause by issuing notice to the respondents on 15.03.2024 to comply with the requirements under Section 21 of the Arbitration and Conciliation Act, 1996. A reply has been sent only by the second

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4/7

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

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Arb.O.P (Com.Div.) No.548 of 2024

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respondent, while the other respondents have not sent any reply.

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Since there exists an Arbitration Clause in the Memorandum of Understanding, which is the subject matter of the dispute between the parties and since the petitioner has complied with the requirements under Section 21 by issuing notice to the respondents on 15.03.2024 and since there is no consensus between the parties with regard to the name of the Arbitrator, this Court has to necessarily appoint an Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

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For the foregoing reasons, this Arbitration Original Petition is allowed as prayed for by issuing the following directions :-

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a) This Court appoints Hon'ble Mr.Justice.M.Sathyanarayanan, Former Judge of Madras High Court, residing at 32(148), Flat No.7F9, 7^th Floor, Bhaasyaam Plutus Residence, Lattice Bridge Road, Thiruvanmiyur, Chennai – 600 041, (Mobile Nos.9445443300, 9498022255) as the sole Arbitrator to adjudicate the dispute between the parties arising out of the Memorandum of Understanding.

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(b) The Arbitrator shall be paid his/her remuneration / fees in accordance with the 4 th schedule of the Arbitration and Conciliation Act, 1996.

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5/7

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

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Arb.O.P (Com.Div.) No.548 of 2024

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(d) The Arbitrator shall conduct the arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and shall complete the arbitration within the specified time as prescribed under the said Act.

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10.06.2025

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Index: Yes/ No Speaking order / Non speaking order Neutral citation : Yes / No kak

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6/7

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

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Arb.O.P (Com.Div.) No.548 of 2024

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ABDUL QUDDHOSE, J.

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kak

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Arb.O.P (Com.Div.) No.548 of 2024

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10.06.2025

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7/7

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

M/s.Sri Karupiah Trading Company v. The Annai Steels

Case brief

What is this about?

What did the court decide?

M/s.Sri Karupiah Trading Company v. The Annai Steels

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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