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IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR JUSTICE ABDUL QUDDHOSE, J
TVS Credit Services Ltd. – Appellant
Versus
Peripheral Store – Respondent
ORDER :
Abdul Quddhose, J.
This petition has been filed under Section 11 of the the Arbitration and Conciliation Act, 1996 , seeking for appointment of an Arbitrator by this Court.
2. There seems to be a dispute between the petitioner and the respondent arising out of the following contracts:
(a) Invoice based Financing Facility Agreement dated 01.04.2022
(b) Supplemental Deed cum Modification Agreement dated 04.05.2023
(c) Supplemental deed of Hypothecation dated 09.05.2023
3. According to the petitioner certain sums of money are due and payable by the respondent to the petitioner under the aforementioned contracts. There are arbitration clauses in all the aforementioned contracts and the same are extracted hereunder.
(a) Arbitration Clause in Invoice based Financing Facility Agreement dated 01.04.2022.
"23. Arbitration:
All disputes differences and/or claims arising out of this Agreement whether during its subsistence or thereafter shall be settled by Arbitration in accordance with the provisions of the Arbitration Act 1996 and shall be referred to the Sole Arbitration of an Arbitrator nominated by the Lender. The award given by such Arbitrator shall be final and binding on all parties to
The existence of arbitration clauses in interlinked contracts suffices for appointing an Arbitrator, and procedural missteps do not bar relief if entitlement is established.
The existence of an arbitration clause allows a party to seek court assistance for appointing an arbitrator when no consensus exists, with other disputes to be resolved by the arbitrator.
The main legal point established in the judgment is the narrow scope of examination of the existence of an arbitration agreement under Section 11 of the Arbitration and Conciliation Act, 1996, and th....
The referral court under Section 11 of the Arbitration and Conciliation Act must determine the prima facie existence of an arbitration agreement and appoint an arbitrator if satisfied.
The court held that its review under Section 11(6) is limited to confirming the existence of an arbitration agreement, without delving into substantive disputes, which is for the Arbitrator to decide....
The main legal point established is the court's adherence to the narrow examination of the existence of an arbitration agreement under Section 11(6A) and the emphasis on expeditious disposal of Secti....
The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.
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