Madras High Court
Mr.T.Ravichandran vs Mrs.Parimala Raju on 24 August, 2021
O.P. No.200 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated 24.08.2021
CORAM:
THE HONOURABLE MR.JUSTICE N. SATHISH KUMAR
O.P. No.200 of 2021
and Application Nos.794 and 795 of 2021
1.Mr.T.Ravichandran
2. N. Murugesan
3. P. Nepolian . . . Petitioners
Versus
1. Mrs.Parimala Raju
2. P.Dinesh Kumar, Arbitrator,
No. 1, 1st floor, Jagadambal Colony,
2nd Street, Royapettah,
Chennai – 14 . . . Respondents
PRAYER : Petition filed under Section 14 of the Arbitration and Conciliation
Act, 1996 to terminate the mandate of the arbitrator, the 2nd respondent herein,
in the arbitration proceedings initiated by the 1st respondent against the
petitioners herein and award costs in favour of the petitioners.
For Petitioners : A. Sella Visalakshi
For Respondents : Mr.C.Veeraraghavan
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O.P. No.200 of 2021
ORDER
This original petition has been filed to terminate the mandate of the
arbitrator, the 2nd respondent herein, in the arbitration proceedings initiated by
the 1st respondent against the petitioners herein and award costs in favour of the
petitioners.
2. The main contention of the learned counsel for the petitioners is that
the Arbitrator was unilaterally appointed. The learned counsel appearing for
the petitioners further submitted that there was no loan agreement what so ever
existing between the parties, whereas only investment agreement has been
made between the partners. Since the invocation of arbitration itself is not
according to law, terminate the mandate of the Arbitrator does not arise at all.
3. Though several grounds have been raised in the petition, the
learned counsel for the first respondent submitted that there is agreement
between the parties and the petitioners had availed loan. Now, in order
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O.P. No.200 of 2021
to protract the proceedings, they had filed this original petition. At any event,
learned counsel for the first respondent submitted that there is no objection for
appointing an another arbitrator.
4. The Agreement dated 02.06.2014 executed by the Firm and the first
respondent herein, wherein, the petitioners are the partners of the firm, which is
not in dispute. When there is an existence of agreement, this Court cannot go
into validity of the same. It is the contention of the learned counsel for the
petitioners that they have not signed any agreement. Such a plea can be
canvassed only before the Arbitral Tribunal. The very appointment of the
second respondent is not a fair procedure, as per the judgment of PERKINS
EASTMAN ARCHITECTS DPC & ANR Vs. HSCC (INDIA) LTD (2019 SCC
ONLINE SC 1517). Hence, the entire proceeding has to be set aside.
5. Having regard to the fact that there is an agreement entered
between the parties and further, there is no dispute with regard to certain
payments and also considering the fact that the learned counsel appearing for
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O.P. No.200 of 2021
the first respondent has no objection for appointing another Arbitrator, this
Court is of the view to appoint Mr.S.Arjun Suresh (Enrol.No.Ms.1062/04) as an
Arbitrator to arbitrate the matter.
6. Accordingly, this Arbitration Original Petition is ordered as follows:
i) that Mr.S.Arjun Suresh residing at
(Enrol.No.Ms.1062/04) New No.54, 3rd Main Road,
Gandhinagar, Adyar, Chennai –600020
Mobile No: 9789971118 is appointed as a Sole Arbitrator
to enter upon reference and adjudicate the matter.
ii] The learned sole Arbitrator appointed herein,
shall after issuing notice to the parties and upon hearing
them, pass an award as expeditiously as possible,
preferably within a period of six months from the date of
receipt of the Order.
iii] The learned sole Arbitrator appointed herein
shall be paid fees and other incidental charges, fixed by
him and the same shall be borne by the parties equally.
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O.P. No.200 of 2021
7. This Arbitration Original Petition is ordered accordingly, leaving the
parties to bear their own costs. Consequently, connected applications are
closed.
24.08.2021
(½)
msv
To
Mr.S.Arjun Suresh
New No.54, 3rd Main Road,
Gandhinagar,
Adyar, Chennai – 600020
Mob.No: 9789971118
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O.P. No.200 of 2021
N. SATHISH KUMAR, J.
msv
O.P. No.200 of 2021
and Application Nos.794
and 795 of 2021
24.08.2021
(½)
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