Court held that under Section 11 of the Arbitration and Conciliation Act, an arbitrator can be appointed when an arbitration clause exists and procedural requirements are met.

ORDER :

(ABDUL QUDDHOSE, J.)

As directed by this Court, the Registry has printed the name of the respondents in the cause list today. Through substituted service, the respondents have been served with the notice in this petition. Despite effecting substituted service, the respondents have chosen not to enter appearance in this petition. Hence, the respondents are set ex-parte by this Court.

2. This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for appointment of an arbitrator.

3. There seems to be a dispute between the petitioner and the respondents arising out of the Loan Agreement as well as the Memorandum of Deposit of title deeds, both dated 17.07.2023. There exists an arbitration clause in both the aforementioned contracts, which is extracted hereunder:

"ARTICLE 10: ARBITRATION

GOVERNING LAW, DISPUTE RESOLUTION AND

JURISIDICTION: (Art 10 existing agreement)

1. This Agreement shall be governed by and construed in accordance with the laws of India.

2. Any and all dispute(s), difference(s) and /or claim(s) arising out or touching upon this Agreement or in relating to this Agreement, whether during its subsistence or thereafter, shall be referred to the Arbitration by a Sole Arbitrator to be appointed by any one of the below mentioned 'arbitral institution' in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof from time to time.

a. Council for National and International Commercial Arbitration (CNICA) currently having its office at Unit No. 208, 2 Floor, Bela Wing, Raheja Towers, Nos 113-134, Anna Salai, Chennai-600002, or

b. Southem India Chamber of Commerce and Industry (SICCI), currently having is Office at Indian Chamber Buildings, P.B.No 1208, Esplanade, Chennai-600108, or

c. Kovise Foundation Conflict Resolution International (KRCRI), currently having its Office at G-2, Plot No. 108, Majestic Colony, Valasarawakkam, Chennai-600087, or

d. Any arbitral institution designated under the provisions of the Arbitration and Conciliation Act, 1996 (the act) or any panel of arbitrators maintained under the provisions of the act.

The entire arbitral proceedings shall be conducted by the Arbitrator in the manner he/she considers appropriate, and the award rendered by the Arbitrator shall be final and binding on all the parties to this agreement. The arbitral institution shall provide administrative assistance to the Arbitrator to facilitate the conduct of the arbitral proceedings, if he/she chooses to avail such assistance from the institution.

3. The Arbitrator shall be entitled to, at his/her discretion conduct the proceeding in-person and/or through exchange of mail, email and/or any other mode of electronic communication including video conferencing (VC), online, virtual hearing etc., using an external application or platform, if necessary. The parties to the arbitration proceeding shall be bound by the decision of the arbitrator in this regard.

4. The parties hereby consent to have the arbitral proceeding conducted by a written pleading, documents, written submissions and or any other electronic mode of communication-based arbitration as may be determined by the arbitrator.

5. The parties herein agree not to insist on in-person and/or oral hearing except in certain exceptional circumstances as the Arbitrator may deem fit.

6. The Parties herein agree that the venue and seat of the arbitration proceeding shall be usually at Chennai or in exceptional circumstances any other place as deemed fit by the Arbitrator.

7. The language of arbitral proceedings shall be English.

8. The parties herein agree that in the event of death of