Equitas Small Finance Bank ... vs M/S. Vnr Auto Logistics
2021 Latest Caselaw 21248 Mad

Citation : 2021 Latest Caselaw 21248 Mad
Judgement Date : 25 October, 2021

Madras High Court

Equitas Small Finance Bank ... vs M/S. Vnr Auto Logistics on 25 October, 2021

                                                                          Arb.O.P.Nos.163 to 167 of 2021

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    Dated: 25/10/2021

                                                   CORAM
                                   THE HONOURABLE MR.JUSTICE N. SATHISH KUMAR

                                         Arb.O.P.(Com.Div) Nos.163 to 167 of 2021


                     Equitas Small Finance Bank Limited
                     rep. by its Authorised Signatory
                     Mr.R.S.Bharath
                     4th Floor, Phase II, Spencer Plaza
                     769 Anna Salai
                     Chennai 600 002.                   ...             Applicant


                                                           Vs


                     1. M/s. VNR Auto Logistics
                        rep. by its Proprietor
                        Mr.Nageswara Rao (deceased)
                        No.4/84, I Cross Street
                        Thirumal Nagar, Poonamallee
                        Tiruvallur 600 056.

                     2. Ajay Kumar, V.N.
                        Proprietor of VNR Auto Logistics
                        No.4/84, I Cross Street
                        Thirumal Nagar, Poonamallee
                        Tiruvallur 600 056.


                     3. V.N.Pramila

                     1/6


https://www.mhc.tn.gov.in/judis/
                                                                             Arb.O.P.Nos.163 to 167 of 2021

                           Proprietor of VNR Auto Logistics
                           No.4/84, I Cross Street
                           Thirumal Nagar, Poonamallee
                           Tiruvallur 600 056.

                     4. V.N.Vijay Kumar
                        Proprietor of VNR Auto Logistics
                        No.4/84, I Cross Street
                        Thirumal Nagar, Poonamallee
                        Tiruvallur 600 056.

                     5. V.N.Kishore Kumar
                        Proprietor of VNR Auto Logistics
                        No.4/84, I Cross Street
                        Thirumal Nagar, Poonamallee
                        Tiruvallur 600 056.

                     6. J. Senthil Kumar
                        Sole Arbitrator
                        8 United India Building (Annexe)
                        Opp to Esplanade Police Station
                        Chennai 600 108.                 ...              Respondents

Petitions filed under Sections 14 (1) (b) & 15 (2) of the Arbitration

and Conciliation Act, 1996, to terminate the mandate of the Arbitration

Proceedings and substitute an Arbitrator in the place of existing Arbitrator.

For applicant ... Ms.A.S.Neela Narayani for Mr.A.Damodaran

For respondents ... No appearance.

COMMON ORDER

https://www.mhc.tn.gov.in/judis/ Arb.O.P.Nos.163 to 167 of 2021

These Arbitration Original Petitions have been filed to terminate the

mandate of the Arbitration Proceedings and substitute an Arbitrator in the

place of existing Arbitrator.

2. Heard Ms.A.S.Neela Narayani for Mr.A.Damodaran, learned

counsel for the applicant and there was no representation on behalf of the

respondents.

3. The learned counsel appearing for the applicant submitted that

after receiving the notice, respondents 2 to 4 have filed interim application,

objecting the unilateral appointment of the Arbitrator. He would further

submit that as per the procedures contemplated in the Act, Arbitral Tribunal

has sent the notice to the respondents 1 to 5.

4. On a careful perusal of the materials available on record, this

Court is of the considered view 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

https://www.mhc.tn.gov.in/judis/ Arb.O.P.Nos.163 to 167 of 2021

& ANR Vs. HSCC (INDIA) LTD (2019 SCC ONLINE SC 1517).

5. Considering the nature of dispute, this Court, appoints

Mr.J.Sivanandaraj, Advocate, as a sole Arbitrator to arbitrate the dispute

between the parties instead of one appointed by petitioner.

6. Accordingly, these original petitions are ordered as follows:

i) Mr.J.Sivanandaraj, Advocate, No.6, Indian

Chamber (SICCI), Annex Building, II Floor, Esplanade

Road, Parrys, Chennai 600 108 (Mobile

No.9841024778) is appointed as a Sole Arbitrator to

enter upon reference and adjudicate the matter.

ii] The 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

https://www.mhc.tn.gov.in/judis/ Arb.O.P.Nos.163 to 167 of 2021

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.

7. These Original Petitions are ordered accordingly, leaving the

parties to bear their own costs.