Madras High Court
M/S. Bhoruka Classic Finance Pvt ... vs M/S. Shriram City Union Finance ... on 26 July, 2021
O.P.(Comm) No.215 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 26/7/2021
CORAM
THE HONOURABLE Mr.JUSTICE N. SATHISH KUMAR
O.P.No.215 of 2021
and
A.No.874 of 2021
1. M/s. Bhoruka Classic Finance Pvt Ltd
rep. By its Director – Mr.Vikas Agarwal
Nirmal Building, 16th Floor
Nariman Point
Mumbai 400 021.
2. Vikas Agarwal ... Petitioners
Vs
M/s. Shriram City Union Finance Limited
No.13, 3rd Floor Meenakshi Towers
Opp. Ramakrishnan School Ground
G.N.Shetty Road, Rajamannar Street
T. Nagar
Chennai 600 017. ... Respondent
PRAYER : Petition filed under Section 34 (2) (A) (iii), 34 (2) (a) (v) & 34 (2)
(b) (ii) of the Arbitration and Conciliation Act, 1996, to set aside the Award
dated 25/2/2020 passed by the learned sole Arbitrator in Arbitration Case
No.CDN/SCUFL/284/2019.
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O.P.(Comm) No.215 of 2021
For Petitioners ... Mr.O.Solaiappan
for M/s. Arva Merchant
For Respondent ... Mr.M. Arunachalam
------
ORDER
This Original Petition (Commercial) has been filed to set aside the
Award dated 25/2/2020 passed by the learned sole Arbitrator in Arbitration
Case No.CDN/SCUFL/284/2019.
2. Heard Mr.O.Solaiappan, learned counsel for the petitioners and
Mr.M.Arunachalam, learned counsel for the respondent.
3. Award of the sole Arbitrator is challenged, in this Original Petition,
on the ground that unilateral appointment of Arbitrator is against the well
settled position of law, as held in the judgment of the Hon'ble Supreme Court,
in PERKINS EASTMAN ARCHITECTS DPC & ANR Vs. HSCC (INDIA)
LTD (2019 SCC ONLINE SC 1517). Hence, the entire proceeding has to be
set aside.
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O.P.(Comm) No.215 of 2021
4. Learned counsel appearing for the respondent contended that parties
have entered into two agreements. This Original Petition relates to one
agreement. in respect of other agreement, application under Section 11 is filed
and the same is pending. Therefore, it is his contention that if the award is set
aside, on the ground of unilateral appointment of Arbitrator, placing reliance
on the judgment of the Hon'ble Supreme Court, in PERKINS EASTMAN
ARCHITECTS DPC & ANR Vs. HSCC (INDIA) LTD (2019 SCC
ONLINE SC 1517), both the matters could be referred to the same Arbitrator,
for which the learned counsel for the petitioners has no objection.
5. Having regard to the fact that immediately, after the unilateral
appointment of Arbitrator, objection has been raised, on 27/12/2019, by the
petitioners. However, the learned Arbitrator has proceeded to pass an award,
without considering the objections. When the very appointment of Arbitrator
is against the law, this Court is of the view that the Award passed by the
Arbitrator is against the law cannot be sustained in law.
6. Accordingly in the above ground award passed by the Arbitrator is set
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O.P.(Comm) No.215 of 2021
aside and with the consent of both sides, Mr.C.Mohan, for M/s. King and
Patridge, is appointed as a Sole Arbitrator to enter upon reference and
adjudicate the matters.
7. Accordingly, this Original Petition (Commercial) is ordered as
follows:
i. Mr.C.Mohan, for M/s. King and Patridge, No.108,
Armenian Street, Chennai 600 001 (Mobile
No.9840029865) is appointed as a Sole Arbitrator to enter
upon reference and adjudicate the matters.
ii. Learned 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
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O.P.(Comm) No.215 of 2021
him and the same shall be borne by the parties equally.
8. This Original Petition (Commercial) is ordered, accordingly, leaving
the parties to bear their own costs. Consequently, connected application is
closed.
3/8/2021
Index : Yes / No
Internet: Yes
Speaking/non speaking order
mvs.
To
Mr.C.Mohan, for M/s. King and Patridge,
No.108, Armenian Street,
Chennai 600 001
(Mobile No.9840029865)
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O.P.(Comm) No.215 of 2021
N. SATHISH KUMAR, J
mvs.
O.P.(Commercial) No.215 of 2021
3/8/2021
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