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Five Star Business Finance Limited v. Poongodi

Madras HC1 Jul 2026Arb O.P(COM.DIV.)/165/2026

Case brief

AI extract

What is this about?

Section 11(5) Arbitration and Conciliation Act 1996 arbitrator appointment petition; Five Star Business Finance Limited v Poongodi, Karthikeyan and Shoban; Loan Agreement dated 24.04.2023 arbitration agreement; Section 21 notice dated 09.09.2025 unanswered; respondents absent and set ex-parte; Sole Arbitrator M/S.A.Lakshmi, Advocate, appointed to enter upon reference; fees per Schedule-IV of the Act; High Court of Judicature at Madras, Commercial Division; Justice K.Kumaresh Babu; order dated 01-07-2026; no costs.

What did the court decide?

Appointment of M/S.A.Lakshmi, Advocate, as Sole Arbitrator to enter upon the reference and resolve the disputes between the petitioner and the respondents under the Loan Agreement dated 24.04.2023, with liberty to fix fees as per Schedule-IV of the Act; petition ordered with no costs. ¶33

Five Star Business Finance Limited Vs Poongodi — Arbitration | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether an Arbitrator should be appointed under Section 11(5) of the Arbitration and Conciliation Act, 1996 for the disputes between the petitioner and the respondents arising under the Loan Agreement dated 24.04.2023, given the respondents' failure to respond to the Section 21 notice.

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Court's answer

On a reading of the Loan Agreement dated 24.04.2023 entered into between the petitioner and the respondents, the parties are agreed to resolve the disputes by appointing an Arbitrator (i.e., an arbitration agreement exists).

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Ratio / Principle

In view of the Loan Agreement and considering the nature of claim, the Court deemed it appropriate to appoint an Arbitrator.

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Key takeaways

M/S.A.Lakshmi, Advocate, (Mobile No.8939074533, Women Lawyer's Association, 1st Floor, Addl Law Chamber, High Court Building, Chennai-104) is appointed as Sole Arbitrator.ratio¶29-30
The appointed Sole Arbitrator is to enter upon the reference and resolve the disputes between the petitioner and the respondent.ratio¶30
The learned Sole Arbitrator is entitled to fix her fees as per Schedule-IV of the Act.

Detailed headnote1 paragraphs

Madras High Court (Commercial Division), Coram: Hon'ble Mr. Justice K.Kumaresh Babu (single member), order dated 01-07-2026 on Arb O.P(COM.DIV.) No. 165 of 2026, a petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 filed by Five Star Business Finance Limited seeking appointment of an arbitrator for its disputes with respondents Poongodi, Karthikeyan and Shoban under a Loan Agreement dated 24.04.2023. The petitioner's Section 21 notice dated 09.09.2025 drew no response; in the petition the respondents' vakalat was returned, they made no appearance and were set ex-parte. Reading the Loan Agreement, the Court found the parties had agreed to resolve disputes by appointing an Arbitrator, and appointed M/S.A.Lakshmi, Advocate, as Sole Arbitrator to enter upon the reference, entitling her to fix fees as per Schedule-IV of the Act and requesting expeditious disposal. The Arbitration Original Petition was ordered; no costs.

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Arb O.P(COM.DIV.) No. 165 of 2026

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 01-07-2026

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CORAM

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THE HON'BLE MR.JUSTICE K.KUMARESH BABU

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Arb O.P(COM.DIV.) No. 165 of 2026

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Five Star Business Finance Limited Rep by its Legal Officer, Mr.MadhuSandhan Someswaran Registered Office at New No.27, Old No.4, Taylors Road, Kilpauk, Chennai - 600 010.

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..Petitioner(s)

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Poongodi No.3/117A, Main Road, Somandurai, Tamil Nadu - 642 134.

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Karthikeyan No.3/117A, Main Road, Somandurai, Tamil Nadu - 642 134.

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Shoban No.3/117A, Main Road, Somandurai, Tamil Nadu - 642 134.

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..Respondent(s)

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PRAYER : Petition filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 to appoint an Arbitrator(s) to decide the disputes and difference between the Petitioner and Respondent in terms of Loan Agreement dated 24.04.2023.

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For Petitioner(s): Mr.S.Nataraj for M/s. P.H.Vinodh Pandian For Respondent(s): No appearance

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__________ Page1 of 4

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

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Arb O.P(COM.DIV.) No. 165 of 2026

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ORDER

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This Arbitration Original Petition has been filed under Section 11(5) of

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the Arbitration and Conciliation Act, 1996 to appoint a Sole Arbitrator to adjudicate the differences and resolve the disputes between the petitioner and the respondents in accordance with the terms of the Loan Agreement dated 24.04.2023.

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Heard Mr.S.Nataraj, learned counsel for the petitioner.

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The Vakalat was returned and no appearance was made. Despite the

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name printed in the cause list, the party remained absent and was set ex-parte.

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A notice under Section 21 of the Arbitration and Conciliation Act, 1996 has been issued by the petitioner on 09.09.2025. Inspite of the same, the respondents have not chosen to respond. From a reading of the Loan Agreement dated 24.04.2023 entered to between the petitioner and the respondents, it could be seen that the parties are agreed to resolve the disputes by appointing an Arbitrator.

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__________ Page2 of 4

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

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Arb O.P(COM.DIV.) No. 165 of 2026

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In view of the Loan Agreement and considering the nature of claim, this Court deems it appropriate to appoint an Arbitrator. Accordingly, M/S.A.Lakshmi , Advocate, (Mobile No.8939074533) having address at Women

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Lawyer’s Association, 1^st Floor, Addl Law Chamber, High Court Building, Chennai-104, is appointed as Sole Arbitrator to enter upon the reference and resolve the disputes between the petitioner and the respondent.

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