$~4 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 06.11.2024 + ARB.P. 664/2024 M/S LIVFAST BATTERIES PRIVATE LIMITED .....Petitioner Through: Mr. Amulya Dhingra, Advocate.

versus M/S SAI SIDDHI .....Respondent Through: None.

CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA SACHIN DATTA, J. (ORAL.)

1. The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator for adjudication of disputes between the parties. The parties entered into an authorised dealership / distributorship agreement dated 10.09.2020 whereby the respondent was engaged as the authorized dealer for distributing automotive batteries and other ancillary products and services of the petitioner on a non-exclusive basis.

2. The aforesaid agreement contains a dispute resolution clause as under:-

“21 DISPUTE RESOLUTION

21.1 Any and all disputes, controversies and conflicts ("Disputes") arising out of this Agreement between the Parties or arising out of or relating to or in connection with this Agreement and the performance or non-performance of the rights and obligations set forth herein or the breach, termination or invalidity thereof shall be referred to the business head of each party to be settled jointly and amicably within 30 days after written notice of such Dispute has been given by one party to the other party.

Signature Not Verified ARB.P. 664/2024 Page 1 of 5 Digitally Signed By:ROHIT

21.2 Failing an amicable settlement of any Dispute pursuant to the above within the specified 30 days period, such Dispute arising out of or relating to this Agreement, shall be settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996 or any statutory amendment thereof. The place of arbitration shall be Delhi, India and the language used in the arbitral proceedings shall be English.

21.3 The arbitral tribunal shall consist of one arbitrator to be nominated and appointed by the Company, to which the Authorized Dealer/ Distributor hereby agrees. The authority of the Company to appoint the arbitrator and the arbitrator so appointed shall not be objected to or challenged by the Authorized Dealer/ Distributor in any manner whatsoever.

21.4 The arbitral award and decision by the arbitral tribunal shall be in writing and shall be final, binding and incontestable and shall be enforceable in any court of competent Jurisdiction.

21.5 Pending the submission to arbitration and thereafter until the tribunal renders its award or decision, the Parties shall, except in the event of termination of this Agreement or in the event that injunctive or her equitable relief is granted under this Clause continue to perform their obligations under this Agreement.”

3. That the proprietor of the respondent firm issued a cheque for an amount of Rs. 78,12,353/- (Rupees seventy eight lakhs twelve thousand three hundred and fifty three only) in favour of the petitioner in lieu of the outstanding payments under the authorized dealership agreement.

4. Upon the said cheque being dishonoured, the petitioner issued a notice dated 24.02.2023 under Section 138 NI Act to the respondent calling upon the respondent to remit the outstanding payment within 15 days of receiving the aforesaid notice. However, no payment was made by the respondent towards the said outstanding amount. Accordingly, a complaint under Section 138 NI Act read with Section 141 and 142 of the NI Act was filed by the petitioner against the respondent which is pending before the concerned district court at Gurugram, Haryana presently.

Signature Not Verified ARB.P. 664/2024 Page 2 of 5 Digitally Signed By:ROHIT

5. The pendency of the Section 138 proceedings does not pose an impediment to the proposed arbitration proceedings against the respondent. A Co-ordinate bench of this Court in Newton Engineering and Chemicals Limited and Ors. v. UEM India Pvt. Ltd. 2023:DHC:8476, following the decision of the Supreme Court in Sri Krishna Agencies v. State of A.P