The existence of arbitration clauses in interlinked contracts suffices for appointing an Arbitrator, and procedural missteps do not bar relief if entitlement is established.

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 this Agreement. In the event of an appointed arbitrator dying or being unable or unwilling to act as arbitrator for any reason, the Lender, o such death of the arbitrator or his inability or unwillingness to act as arbitrator, shall appoint another person to act as arbitrator. Such person shall be entitled to proceed with the reference from the stage it is left by his predecessor. The venue of arbitration proceedings shall be at Chennai and the Borrower agrees to proceed with the reference from the stage it is left by his predecessor. The venue of arbitration proceedings shall be at Chennai and the Borrower agrees to a fast track arbitration to be disposed of within 90 days from the date of reference.

(b) Arbitration Clause in Supplemental Deed cum Modification Agreement dated 04.05.2023

16. Arbitration & Jurisdiction

i) If any dispute, difference, or claim arises between any of the Borrowers and the Company in connection with the Facility or as to the interpretation, validity, implementation, or effect of facility Documents or as the rights and liabilities of the parties under the Facility Documents or alleged breach of the Facility Documents or anything is done or omitted to be done under the Facility Documents, the same shall be settled by arbitration by a sole arbitrator to be appointed by any of the following institutions.

(c) Arbitration Clause in Supplemental deed of Hypothecation dated 09.05.2023

25. 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 and Conciliation 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 this Agreement. In the event of an appointed arbitrator dying or being unable or unwilling to act as arbitrator for any reason, the Lender, on such death of the arbitrator or his inability or unwillingness to act as arbitrator, shall appoint another person to act as arbitrator. Such person shall be entitled to proceed with the reference from the stage it is left by his predecessor. The venue of arbitration proceedings shall be at Chennai. The Borrower agrees to a fast track Arbitration to be disposed within 90 days from the date of reference.

4. According to the petitioner, the Arbitration Clauses found in the aforementioned contracts are also applicable to the Deed of Hypothecation dated 04.05.2023. The petitioner has invoked arbitration clause by issuing notice to the respondents on 19.09.2023 as per Section 21 of the Arbitration and Conciliation Act. Thereafter, the petitioner, as per arbitration clause approached Council for National and International Commerci