An arbitration agreement is valid even without all parties' signatures if there is consensus, respecting the arbitration clauses and procedures under applicable rules.

ORDER

Petitioner is a Limited Company carrying on the business of financial assistance. First respondent obtained financial assistance from the petitioner – Company and the second respondent is a co- borrower. Annexure A2 is a document dated 08.02.2022 signed by the respondents which contains an arbitration clause. Though it is in the form of an agreement, it is not signed by any representative of the petitioner.

2. Respondents committed default in repayment. According to the petitioner, they have made several efforts to persuade the respondents to discharge the liability. On failure of the respondents to pay the amounts, arbitration clause was invoked by the petitioner. An ex-parte award was passed by the Arbitrator on 02.05.2023. Petitioner initiated execution proceedings before the District Court, Thrissur, by filing E.P.No.552 of 2023. Execution application was dismissed by the District Court for the reason that the appointment of the Arbitrator was not in accordance with the provisions of the amended Act. Therefore, the Company approached this Court for appointment of an arbitrator.

3. Notice was issued to the respondents and service is complete in this arbitration request. However, there is no appearance for them.

4. As Annexure A2 is not signed by any representative of the petitioner, the learned counsel for the petitioner was called upon to address the issue as to whether there is a valid arbitration agreement. The same issue was argued in A.R.No.68 of 2025, and an elaborate order has been passed in that case. The settled legal position is that signature of all parties are not essential if there is consensus regarding arbitration clause. In the case at hand previously an arbitration was held. Though notice was issued in this arbitration request and was received by the respondents, they have chosen not to appear before this Court and to oppose the arbitration request. Therefore, it must be deemed that they have no quarrel with regard to the arbitration clause.

In view of the above, this arbitration request is disposed of with the following directions:

1. The Kerala High Court Arbitration Centre is directed to nominate an arbitrator from Panel- IV, preferably from Thrissur, as the sole Arbitrator to resolve the disputes that have arisen between the petitioner and the respondents under Annexure A2.

2. The learned Arbitrator may entertain all issues between the parties in connection with the said Agreements, including questions of jurisdiction and limitation, if any, raised by the parties. All contentions of the parties are left open and they are at liberty to raise their claims and counterclaims, if any, before the learned Arbitrator, in accordance with law.

3. The Registry shall communicate the substance of this order to the Kerala High Court Arbitration Centre within ten days and the Centre shall inform the learned Arbitrator within a further period of one week and shall obtain duly signed Form 3 as required under Rule 20(4) of the Kerala High Court (Arbitration Centre) Rules , 2025 and forward the same to this Court.

4. Upon receipt of the Form 3, the Registry shall issue a certified copy of this order with a copy of the Form 3 appended to the Kerala High Court Arbitration Centre. The original of the Disclosure Statement shall be retained by the Kerala High Court Arbitration Centre.

5. The fees of the learned Arbitrator of the Kerala High Court Arbitration Centre shall be governed by Rule 28 of the Kerala High Court (Arbitration Centre) Rules , 2025. The manner in which the fees and costs payable by the parties shall be governed by Rule 27 of the Kerala High Court (Arbitration Centre)

Rules, 2025.

6. If the learned Arbitrator needs the assistance of an expert, then he is at liberty to seek such assistance in the co