IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice ABDUL QUDDHOSE
M/s.Best Medi Scans – Appellant
Versus
Medall Scans and Labs Private Limited – Respondent
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 09.07.2025 CORAM THE HONOURABLE Mr. JUSTICE ABDUL QUDDHOSE Arb O.P.[Com.Div.] No.567 of 2023 and Application No. 6461 of 2023
1.M/s.Best Medi Scans Represented by its Partners No.729/1, Thiruvottiyur High Road New Washermanpet, Chennai-600081.
2.Dr.Arockia Jai
3.Dr.J.Leena … Applicants Vs.
1.Medall Scans and Labs Private Limited No.67, 2nd Floor, TNPL Building Anna Salai, Guindy, Chennai-600032.
2.S.Ganesh Moorthy
3.B.Ezhilan … Respondents Prayer: Application filed under Order XIV Rule 8 Original Side Rules read with Section 36(2) of the Arbitration and Conciliation Act, 1996, praying to grant an order of stay in the operations of the final award dated 15.11.2022 passed in Arbitration Case No.2 of 2020 passed by the Sole Arbitrator, Mr.Sharath Chandran be not passed.
For Applicants : Mr.M.A.Gouthaman For Respondents : Ms.R.Aparna For M/s.Vijay Anand Associates (R1)
O R D E R
This application has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the impugned arbitral award (final award) dated 15.11.2022 passed in favour of the respondents against the petitioners in Arbitration Case No. 2 of 2020.
2. The petitioners have challenged only the impugned arbitral award (final award) dated 15.11.2022. Under the interim arbitral award dated 11.04.2022, the petitioners have been directed to pay the respondents jointly and severally a sum of Rs.72,02,253/- together with interest at the rate of 12% per annum from 04.05.2019 till the date of realization. Issues were framed by the arbitrator prior to the passing of the interim arbitral award referred to supra and one of the issues framed by the arbitrator was whether the claimant is entitled to an audit of diagnostic test conducted by the respondents between the period from 07.11.2018 till 02.03.2020 and consequently, is the claimant entitled to share the revenue for the said period. The claimants in Arbitration Case No. 2 of 2020 are the respondents in this petition and the respondents in Arbitration Case No. 2 of 2020 are the petitioners herein. Since the arbitrator was unable to come to a conclusion with regard to the aforementioned issue alone, the arbitrator after passing the interim arbitral award dated 11.04.2022, appointed M/s.Sudhindran and Co., Auditor and Chartered Accounts for the purpose of examining the books of accounts and the other connected documents of the petitioners firm for the determination of the revenue share payable by the petitioners for the period from 07.11.2018 to 02.03.2020. Insofar as the remaining issues framed by the arbitrator which are reflected in the interim arbitral award, viz., issue no.1, 2 and 3 are concerned, the arbitrator under the interim arbitral award has rendered conclusive findings and only thereafter, he has come to the conclusion that the petitioners are liable to pay the respondents jointly and severally a sum of Rs.72,02,253/- together with interest at the rate of 12% per annum from 04.05.2019 till the date of realization. As stated supra, only with regard to the issue No.3A framed by the arbitrator referred to supra, since the arbitrator was unable to come to a final conclusion, he has appointed an auditor to examine the books of accounts and connected documents of the petitioners firm.
3. Admittedly, the petitioners did not challenge the interim arbitral award dated 11.04.2022. Subsequently, the interim arbitral award was amended on account of some typographical mistake by the arbitrator on 06.06.2022, but the operative portion of the interim arbitral award dated 11.04.2022 was not altered. Admittedly, the interim arbitral award was not challenged by the petitioners by filing an application under Section 34 of the Arbitration and Conciliation Act, 1996. As per the definition of award under the provisions of the Arbitration and Conciliation Act, 1996, ''award includes interim award''. Thereafter, the Chartered Accountant appointed by the arbitrator through his i
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