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IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE
Five Star Business Finance Limited – Appellant
Versus
Guddi Kunwar Dodiya – Respondent
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 r
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.
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 court affirmed that failure to respond to conciliation requests allows for the appointment of an arbitrator under the Arbitration and Conciliation Act, 1996.
The court must appoint an arbitrator when parties do not reach consensus despite an existing arbitration clause as stipulated under the Arbitration and Conciliation Act, 1996.
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 court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.
The main legal principle established in the judgment is the court's authority to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 when a dispute arises and no arbi....
A sole arbitrator can be appointed by a party if the opposing party defaults on arbitrator appointment, per arbitration clause and judicial precedent.
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....
Compliance with Section 21 for notice invoking the arbitration clause is necessary for arbitration proceedings to commence.
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