Bombay High Court
Taru Meghani And 2 Ors vs Shree Tirupati Greenfield And 3 ... on 30 November, 2021
Bench: B.P. Colabawalla
GANESH 17-ARBAP(L)-63-2020.doc
SUBHASH
LOKHANDE
Digitally signed by
GANESH SUBHASH
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
LOKHANDE
Date: 2021.12.02
11:48:53 +0530 ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
ARBITRATION APPLICATION (L) NO. 63 OF 2020
Taru Meghani & Ors. .. Applicants
Vs.
Shree Tirupati Greenfield Developers & Ors. .. Respondents
Mr.Narayan Sahu i/b. S. K. Dubey & A. K. Upadhyay for the Applicants
in both matters.
Mr.Saurabh Oka for the Respondents.
CORAM :- B.P.COLABAWALLA, J.
DATE :- 30th NOVEMBER, 2021.
P. C.:
1. The above Application is filed under Section 11 of the
Arbitration and Conciliation Act, 1996 (for short "the Arbitration Act")
seeking the appointment of a Sole Arbitrator to decide the disputes and
differences between the Applicants and the Respondents arising out of
and/or in connection with and/or incidental to the Memorandum of
Understanding (for short "the MoU") dated 22nd July, 2014.
2. Initially, the Applicants herein had approached this Court
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by filing Commercial Summary Suit No. 1111 of 2019. In the said
Summary Suit, the Defendants therein filed an Interim Application
contending that there was an Arbitration Clause between the parties and
therefore the Suit be referred to Arbitration under Section 8 of the
Arbitration Act. That Application came to be allowed by this Court vide
its order dated 10th January, 2020 and the operative part of the said
order reads thus:
"25. Hence, the interim application deserves to be partly allowed. Thus, the
following order :
(i) The interim application is partly allowed.
(ii) In respect of the first transaction of Rs.35 lakhs advanced under the
MOU, dated 22nd July 2014, the parties are referred to arbitration
in accordance with arbitration clause contained therein.
(iii) An Arbitrator shall be appointed by the parties in accordance with
the provisions of the Arbitration and Conciliation Act, 1996.
(iv) As regards the second transaction of loan of Rs.19 Lakhs, the
plaintiffs are at liberty to institute a fresh suit in the Court of
competent jurisdiction.
(v) In view of the reference of the parties to arbitration, with liberty to
the plaintiffs to institute a fresh suit in respect of the cause of action
for recovery of the sum of Rs.19 lakhs, along with interest thereon,
the Commercial Suit No. 1111 of 2019 stands disposed of.
No costs.
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(vi) The Plaintiffs are entitled to refund of court fees, if any, in
accordance with rules.
(vii) In view of disposal of the commercial summary suit, Summons for
Judgment No. 71 of 2019 also stands disposed of."
3. Since the parties could not agree to the name of an
Arbitrator, the Court passed the aforesaid order. Hence, the present
Section 11 Application is filed.
4. The learned advocate appearing on behalf of the
Respondents has fairly stated that the Respondents do not dispute the
existence and validity of the Arbitration Agreement. Both parties have
further stated that since they are unable to agree to the name of an
Arbitrator, they have both left it to the Court to appoint a Sole Arbitrator
to decide the disputes and differences between the parties arising out of
the MoU dated 22nd July, 2014.
5. In view of the aforesaid stand of the parties, the following
order is passed:
(a) Mr. Atul Daga, an advocate of this Court, is hereby appointed to
act as a Sole Arbitrator to decide the disputes and differences
between the Applicants and the Respondents arising out of
and/or in connection with and/or in relation to the MoU dated
22nd July, 2014
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(b) A copy of this order will be communicated to the learned Sole
Arbitrator by the advocates for the Applicants within a period of
one week from today.
(c) The learned Sole Arbitrator is requested to forward his Statement
of Disclosure under Section 11 (8) read with Section 12 (1) of the
Arbitration Act to the advocates for the Applicants so as to enable
them to file the same in the Registry of this Court. The Registry of
this Court shall retain the said Statement on the file of this
Application and a copy of the same shall be furnished by
the advocates for the Applicants to the advocates for the
Respondents.
(d) The parties shall appear before the learned Sole Arbitrator on
such date and at such place as he nominates to obtain appropriate
directions with regard to fixing a schedule for completing
pleadings etc. The Arbitral Tribunal shall give all further
directions with reference to the arbitration and also as to how it is
to proceed.
(e) Contact and communication particulars shall be provided by all
sides to the learned Sole Arbitrator within a period of one week
from today. This information shall include a valid and functional
email address as well as mobile numbers of the respective
advocates.
(f) All Arbitral costs and fees of the Arbitrator will be borne by both
sides equally, subject to the final Award that may be passed by the
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Arbitral Tribunal.
(g) The parties immediately consent to a further extension of up to
six months to complete the Arbitration should the learned Sole
Arbitrator find it necessary.
(h) The parties have agreed that the venue and seat of the arbitration
will be in Mumbai.
6. The Arbitration Application is accordingly disposed of. No
order as to costs.
7. All parties to act on an authenticated copy of this order
digitally signed by the Personal Assistant /Private Secretary/Associate
of this Court.
(B. P. COLABAWALLA, J.)
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