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V. KAMESWAR RAO
Orix Leasing & Financial Services India Ltd. – Appellant
Versus
One 97 Communications Ltd – Respondent
JUDGMENT :
V. KAMESWAR RAO, J.
1. This petition has been filed under Section 11(5) of the Arbitration & Conciliation Act, 1996 (‘the Act’, for short) for appointment of an Arbitrator.
2. The brief facts, as noted from the petition are that the petitioner entered into a Master Lease Agreement dated August 26, 2016 (‘the Agreement’, for short), for taking on lease a vehicle with respondent No.1, being the lessee and respondent No.2, being the co-lessee.
3. As per the terms of the Agreement, respondents agreed to pay lease rent of Rs.8,683/- along with service tax for the use of the vehicle leased during the tenure of the Agreement, i.e. 24 months. The Agreement also stipulated, as per Article 2.5, that the respondents shall not be entitled to any claim of ownership of the vehicle or challenge the petitioner’s ownership right, title or interest in the leased vehicle during the subsistence of the agreement.
4. It is the case of the petitioner that the respondents defaulted in payment of the lease rental and accordingly a demand notice was sent on November 21, 2018, which was followed by a notice invoking the arbitration clause dated February 22, 2019, by which the petitioner suggested the n
It is a settled position of law that Section 42 of the Act would not apply to an application that has been filed under Section 11 of the Act.
Arbitration - Appointment of an Arbitrator or panel of Arbitrators - As per section 11(2) parties are given liberty to enter into an agreement for procedure to appoint an Arbitrator, in which event, ....
The main legal point established in the judgment is that the appointment of an arbitrator must be in accordance with the agreed procedure in the contract. If the appointment is not in line with the a....
The court reaffirmed that the existence of an arbitration agreement is sufficient for appointing an arbitrator, emphasizing minimal judicial interference in arbitration processes.
An arbitrator's appointment must adhere to the agreed procedure; failure to do so renders the appointment invalid under Section 11(6) of the Arbitration Act.
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