$~11 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 07.11.2024 + ARB.P. 1610/2024 M/S LIVGUARD ENERGY TECHNOLOGIES PRIVATE LIMITED .....Petitioner Through: Mr. Diwakar Singh, Mr. Chetan Rathore, Advs.

versus M/S SRI VELAVAN BATTERY SERVICE THROUGH ITS PROPRIETOR/

AUTHORIZED SIGNATORY MR NATARAJAN SRINIVASAN .....Respondent Through: None.

CORAM:

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

1. The present petition filed under section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the A&C Act’) seeks appointment of a Sole Arbitrator to adjudicate the disputes between the parties.

2. The disputes between the parties have arisen in the context of an Authorized Dealership/Distributorship Agreement (hereinafter referred as “the Agreement) dated 06.07.2018 executed between the petitioner and respondent, in terms of which respondent was engaged as an authorized dealer/distributor for the products, i.e. inverter, inverter batteries, automotive/motorcycle batteries and other related products and services of the petitioner.

3. A cheque dated 30.05.2023 for Rs. 14,03,908/-, was issued by Signature Not Verified ARB.P. 1610/2024 Page 1 of 6 Digitally Signed respondent towards part discharge of its liabilities. However, the same was dishonoured upon its presentation.

4. Dispute/s have arisen between the parties on account of alleged default on the part of the respondent in discharging its liability under the agreement. 5. The arbitration clause in the Agreement between the parties, is in the following terms : -

“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.

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 other equitable relief is granted under this Clause continue to perform their obligations under this Agreement.”

6. Disputes having arisen between the parties, a statutory notice dated Signature Not Verified ARB.P. 1610/2024 Page 2 of 6 Digitally Signed

28.06.2023 under Section 138 of the Negotiable Instrument Act, 1881 (hereinafter referred as “NI Act”) was issued by the petitioner calling upon the respondent to remit the outstanding payment within 15 days of the receiving of aforesaid notice. However, since the respondent failed to clear the requisite payments, a criminal complaint case bearing no. NACT 86552 of 2023 under Section 138 of NI Act was filed before the concerned Court. The same is pending adjudication. However, the