The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 11 and Section 21 - Appointment of Arbitrator - Petition filed for appointment of an arbitrator under the arbitration clause present in the agreements dated 26.03.2014 and 08.02.2019 - Respondents admitted existence of arbitration clause and consented to appointment of arbitrator - Court appoints Mr. Arun C. Mohan as Sole Arbitrator to adjudicate the dispute. (Paras 1-7)

(B) Arbitration Clause - The arbitration clause mandates mutual discussions before invoking arbitration, and if unresolved, allows the aggrieved party to approach the court for appointment of an arbitrator. (Paras 2-3)

(C) Ex Parte Proceedings - Respondents were set ex parte due to failure to enter appearance despite being duly served. (Paras 5-6)

Facts of the case:
The petitioner filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator due to disputes arising from agreements dated 26.03.2014 and 08.02.2019, which contained arbitration clauses. The respondents acknowledged the arbitration clause and agreed to the appointment of an arbitrator.

Findings of Court:
The court found that the petitioner complied with statutory requirements and appointed Mr. Arun C. Mohan as the Sole Arbitrator to resolve the disputes.

Issues: The main issues included the existence of an arbitration clause and the respondents' consent for arbitration.

Ratio Decidendi: The court emphasized the importance of the arbitration clause and the statutory compliance by the petitioner in invoking arbitration.

Result: Petition allowed.

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (in short “the Act”) seeking for appointment of an Arbitrator by this Court.

2.There seems to be a dispute between the petitioner and the respondents arising out of the following agreements:-

a)Operation and Management Agreement (services) dated 26.03.2014;

b)Maintenance (with parts and consumables) Agreement dated 26.03.2014; and

c)Amendment Agreement dated 08.02.2019.

3.In all the aforementioned agreements, there exists an arbitration clause, which is extracted hereunder:-

“14. DISPUTE RESOLUTION ( Agreement dated 26.03.2014)

14.1 The Parties hereto shall attempt to resolve all differences and disputes first through mutual discussions and negotiations, in keeping with the spirit of this Agreement.

14.2 In the event that the Parties hereto are unable to settle the dispute or difference or fail to negotiate their differences whether relating to the interpretation, meaning, validity, existence or breach of this Agreement or any clause herein, within a period of 30 days from the date of the commencement of the discussion/negotiations, then the aggrieved Party shall by giving a notice to the other Party, be entitled to invoke the arbitration provisions of this Agreement. The reference shall be made to a sole arbitrator, appointed jointly by the Parties. The arbitration shall be conducted according to the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or reenactment thereof.

14.3 The notice should accurately set out the disputes between the Parties, the Intention of the aggrieved Party to refer such disputes lo arbitration as provided herein and the name of the person it seeks to appoint as the sole arbitrator. All notices by one Party to the other in connection with the arbitration shall be in writing and shall be made as provided in this Agreement.

14.4 If the Parties fails to appoint an arbitrator within 30 days from the receipt of the request to do so from the other Party, then the aggrieved Party shall be free to approach the Court in Chennai city for appointment of the arbitrator in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and the decision of such court shall be final and binding on the Parties.

14.5 The Arbitration shall be held at Chennai and the award of the arbitrator shall be final and binding on the Parties hereto.

14.DISPUTE RESOLUTION (Agreement dated 26.03.2014)

14.1 The Parties hereto shall attempt to resolve all differences and disputes first through mutual discussions and negotiations, in keeping with the spirit of this Agreement.

14.2 In the event that the Parties hereto are unable to settle the dispute or difference or fall to negotiate their differences whether relating to the interpretation, meaning, validity, existence or breach of this Agreement or any clause herein, within a period of 30 days from the date of the commencement of the discussion/negotiations, then the aggrieved Party shall by giving a notice to the other Party, be entitled to invoke the arbitration provisions of this Agreement. The reference shall be made to a sole arbitrator. appointed jointly by the Parties. The arbitration shall be conducted according to the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or reenactment thereof.

14.3 The notice should accurately sot out the disputes between the Parties, the intention of the aggrieved Party to refer such disputes to arbitration as provided herein and the name of the person il seeks to appoint as the sole arbitrator. All notices by one Party to the other in connection with the arbitration shall be in writing and shall be made as provided in this Agreement.

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2025 Supreme(Online)(MAD) 6887

HIGH COURT OF MADRASMr. JUSTICE ABDUL QUDDHOSE, Jsuzlon global services limited – AppellantVersusindustrial mineral co. – RespondentArb.O.P (Com.Div.) No.98 of 2025

The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.

HIGH COURT OF MADRAS
Mr. JUSTICE ABDUL QUDDHOSE, J
suzlon global services limited – Appellant
Versus
industrial mineral co. – Respondent
Arb.O.P (Com.Div.) No.98 of 2025