Interim relief under arbitration proceedings can be granted to secure claims when a prima facie case is established, barring conclusive evidence to the contrary.

COMMON ORDER

When these applications came up for hearing on 16.07.2025, this Court passed the following order:

"These applications have been filed under Section 9 of the Arbitration and Conciliation Act, 1996 seeking for the following reliefs:-

a) To pass an order of attachment of the respondent's stock worth Rs.39,76,429/- for the year 2025-2026, morefully described in the Schedule – A of the Judges Summons, pending disposal of the arbitral proceedings.

b) to pass an order of attachment of the respondent's bank account morefully described in the Schedule B to the Judges Summons and freeze the same, pending disposal of the arbitral proceedings.

2. The applicant is a liquor manufacturer. They have sold liquor to the respondent through various invoices. The invoices raised by the petitioner on the respondent have been filed as documents along with this application. According to the applicant, the total value of the unpaid invoices is Rs.4 Crores and 3 Lakhs. According to the applicant, the respondent has failed to pay the outstanding dues of the applicant amounting to Rs.4 Crores and 3 Lakhs. According to the applicant, the cheques issued by the respondent towards part payment of the applicant's outstanding dues were also returned-dishonoured for “insufficiency of funds”. The applicant has also filed the returned cheques along with this application. According to the applicant in all the invoices raised by the applicant on the respondent, there exists an arbitration clause and the same is reproduced hereunder:-

5. All Disputes shall be decided by arbitrator only before the Courts at Chennai.

3. The applicant has expressed its willingness to go for arbitration in accordance with the arbitration clause contained in all the invoices. To secure the claim of the applicant pending arbitration, they have filed these applications under Section 9 of the Arbitration and Conciliation Act, 1996 .

4. A counter affidavit has been filed by the respondent in these applications. They claim that the invoices filed by the applicant are fabricated documents. They have also filed documents viz., the invoices which according to the respondent were the actual invoices raised by the petitioner on the respondent, which are dated 06.12.2022 to 27.02.2023. According to the respondents, the invoices raised on the respondent by the petitioner does not contain an arbitration clause. The respondent also contend that no part of cause of action arose within the jurisdiction of this Court. They contend that the entire cause of action arose only at Puducherry, where both the applicant and the respondent are having their respective offices. With regard to the merits of the applicant's claims, the respondent has not stated anything in the counter affidavit but they have reserved their right to raise all defences as and when the claim is made by the applicant before the Arbitral Tribunal.

5. On the first hearing date i.e., on 18.06.2025, after the respondent received notice in these applications, the respondent's Managing Partner Mr.S. Vakisan, S/o. C. Subramanian appeared as a Party-in-person. He submitted that he will be meeting the representatives of the applicant for the purpose of arriving at an amicable settlement. He sought four weeks time for negotiating with the applicant and for arriving at an amicable settlement.

6. On 18.06.2025, when the Managing Partner of the respondent appeared as a Party-in-person, he never raised any objection with regard to the invoices raised by the applicant against the respondent, which were filed along with these applications and he never submitted that the said invoices are fabricated documents. He also