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2021 Supreme(SC) 125

ROHINTON FALI NARIMAN, B.R.GAVAI
AMWAY INDIA ENTERPRISES PRIVATE LIMITED – Appellant
Versus
RAVINDRANATH RAO SINDHIA – Respondent


Advocates appeared:
For the Petitioner(s):Parag Tripathi, Priya Kumar, Shailabh Tiwari, C. D. Mulherkar, Mishika Bajpai, Chanakya Dwivedi, Mohna, Advocates
For the Respondent(s):Manmeet Arora, Samapika Biswal, Rajat Mittal, Advocates

JUDGMENT :

R.F. NARIMAN. J.

1. Leave granted.

2. This appeal arises out of a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 ["Arbitration Act"] by the respondents in the Delhi High Court for appointment of a sole arbitrator. The brief facts of the case are noted in the impugned order dated 03.12.2020 thus:

    "2. The facts of the case, as noted from the petition are, in the year 1998, the petitioners were appointed as Distributor for respondent for undertaking sale, distribution and marketing of its products in India and were registered as Amway Business Owner (ABO)/ Amway Direct Seller (ADS), in the name of the sole proprietorship 'Sindhia Enterprises' with ABO No. 141935. According to the petitioners, they have set up a vast Line of Sponsorship in the respondent Company, and nurtured and supported close to 1500 ADSs, who have now set up their own networks, and are in the category of Silver/ Gold/ Platinum/ Sapphire/ Emerald. From 2015, the renewal process for existing ADSs became automatic, each year, without payment of any fee. The respondent issued a Code of Ethics and Rules of Conduct in 2015 to govern the terms of the relationship between the respon

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