The court's decision emphasized the importance of arbitration in resolving disputes arising from commercial agreements and the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996.

ORDER :

Chandra Dhari Singh, J.

I.A. No. 4063/2023 (for Exemption)

Subject to the petitioner filing the clear, original and legible/typed copies of any dim documents on which the petitioner may seek to place reliance, within four weeks from today, exemption is granted for the present.

The application is disposed of.

ARB.P. 226/2023

1. The present petition has been filed on behalf of the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of arbitrator for redressal of disputes between the parties arising qua the Dealership Agreement dated 27th February, 2018.

2. Learned counsel appearing on behalf of the petitioner submitted that the petitioner is a registered partnership firm having its registered office at A-1, 1/25, Sai Kutir Society, Opp. J.H. Ambani School, University Road, Surat, Gujarat - 395007. The petitioner is engaged in marketing and servicing of two wheelers alongwith their accessories.

3. It has been submitted on behalf of the petitioner that the respondent is a company having its registered office at The Grand Plaza, Plot No. 2, Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi- 110070 and also at 34 Basant Lok, Vasant Vihar, New Delhi- 110057.

4. It has been submitted that the petitioner and the respondent entered into an agreement on 27th February, 2018, wherein, the petitioner was appointed as a non-exclusive authorized dealer for the distribution, sale, and servicing of respondent's goods and parts. It is further submitted that the said agreement was duly executed between the parties.

5. It has been submitted that in the year 2018, the authorized representative of the respondent i.e., Dhru Automobiles having its registered office at Opposite Centre Point, Ring Road, Surat-395002 approached the petitioner and requested to take over the business. It is further submitted that as stipulated by the Dealership Agreement, the petitioner contacted Mr. Pradeep Nair, a representative of the respondent, who was notified of the contacts between the petitioner and Dhru Automobiles. On a subsequent phone call between the petitioner and Mr. Pradeep Nair, the petitioner was instructed to settle Dhru Automobiles's debts, following which he was to be granted complete control.

6. It has been submitted on behalf of the petitioner that subsequent to the discussions between the petitioner, the respondent and Dhru Automobiles, the petitioner and Dhru Automobiles entered into a Memorandum of Understanding ("MOU") on 30th May, 2018 wherein it was agreed that the business of Dhru Automobiles would be conducted as a joint venture in the name of the petitioner. Furthermore, both parties agreed that Dhru Automobiles alone would run the company location. This arrangement was to be in effect for a period of one year, with both parties sharing earnings and losses equally.

7. It has been submitted on behalf of the petitioner that according to the MOU, the petitioner was expected to introduce a capital of 100 lacs by 31st July, 2018, the said figure was to be paid to the respondent in order to settle Dhru Automobiles' outstanding debts. It is submitted that Mr. Pradeep Nair, who represented the respondent, was properly notified of the 100 Lacs payment.

8. It is submitted on behalf of the petitioner that instead of acknowledging the payments made by the petitioner, the respondent began harassing the petitioner in terms of recovery of alleged sums under the Dealership Agreement and even threatened to terminate the same for the reasons best known to the respondent.

9. It is further submitted on behalf of the petitioner that malice in the actions of the respondent is further supported by the fact that in June 2019, despite carrying out business operations on the instructions of Mr. Pradeep Nair, a representative of the respondent, the petitioner learned of the unauthorized sale of Rs. 31.09 Lacs made by Dhru Automobiles through some brokers and agents without informing the petitioner. The aforemention