IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 17.12.2025

CORAM

THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH

M/s.Shriram Finance Limited,

(Formerly known as Shriram Transport Finance Co Ltd.,)

Rep. by its Authorised representative,

Sri Towers, Plot No.14A, South Phase,

Industrial Estate, Guindy, Chennai - 600 032.

branch office at Branch Office,

No.40/10/2, 2^nd Floor, Saraswathi Complex,

Mount Road, YMCA Corner,

Coonoor, The Nilgiris - 643 101. .... Petitioner

Vs.

1.Poornima S W/o.Shankar

2.Shankar

S/o.Jeyaraman

3.Sivakumar

S/o.Belli .... Respondents

Arbitration Original Petition (Com.Div.) filed under Section 11(6)

of the Arbitration and Conciliation Act, 1996, praying to appoint a Sole Arbitrator to preside over the arbitration proceedings to be commenced with respect to the dispute that have arisen with respect to the Loan cum

Hypothecation Agreement dated 14.12.2017 between the parties.

For Petitioner : Ms.V.Pushpa

For Respondents : Mr.P.Suresh Babu [R1]

Mr.N.Surya Senthil [R2]

No appearance [R3]

*****

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 [for brevity 'the Act'] for appointment of an Arbitrator to decide the dispute and differences between petitioner and respondents in terms of the Term Loan Agreement dated 14.12.2017.

2. When the matter came up for hearing on 09.09.2025, this Court passed the following order:

“This petition has been filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 [hereinafter referred to as the Act] for appointment of sole arbitrator to resolve the disputes that has arisen between the parities vide the loan hypothecation agreement dated 14.12.2017.

2. The relevant clause under the agreement which provides for resolving disputes through arbitration is clause 9 and the same is extracted hereunder:-

Arbitration:-

Any disputes, differences and/or claims arising out of these presents or in any way touching or concerning the same or as to construction, meaning or effect hereof or as to the rights and liabilities of the parties hereunder shall be settled by arbitration to be held in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the Sole Arbitrator to be nominated and appointed by STFC. In the event of death, refusal, neglect, inability or incapability of a person so appointed to act as an arbitrator, STFC may appoint a new arbitrator. The new Arbitrator so appointed shall proceed with the reference from the stage at which it was left by his/her predecessor. The award passed by the arbitrator shall be final and binding on all the parties concerned. The arbitration proceedings shall be held at COIMBATORE. The language of the arbitration proceedings shall be English. Any proceedings to be initiated in pursuance of this arbitration shall be instituted and held in the court at COIMBATORE only.

3. The trigger notice under Section 21 of the Act was issued on 25.11.2024 and the same has also been received bythe respondents. Since there was no response, the present petition has been filed before this Court.

4. Notice and private notice to the respondents returnable by 13.10.2025.

5. Post this case for hearing on 13.10.2025.”

3. After service of notice, the respondents entered appearance, filed counter and raised two preliminary objections. The first objection is that when the earlier award was set aside in Arb.O.P.No.97 of 2023 on 04.12.2023, no liberty was granted by the Court to re-agitate the issue and the said order has also become final. The second issue raised on the side of respondents is that the claim is clearly barred by limitation. Hence, the matter cannot be referred to the Sole Arbitrator.

4. Heard learned counsel for petitioner and learned counsel for respondents.

5. In the case in hand, the parties had entered into a Term Loan Agreement dated 14.12.2017. A letter of guarantee was also issued on

14.12.2017. Due to the alleged default in repayment of loan amount, the p