T.K. Usman Sarjun vs Emperor Entertainment
2023 Latest Caselaw 11238 Mad

Citation : 2023 Latest Caselaw 11238 Mad
Judgement Date : 25 August, 2023

Madras High Court

T.K. Usman Sarjun vs Emperor Entertainment on 25 August, 2023

                                                               ARB.O.P.(Com.Div) No.171 of 2023

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                  DATED: 25.08.2023

                                                      CORAM:

                                  THE HON'BLE MR. JUSTICE ABDUL QUDDHOSE

                                          Arb.O.P.(Com.Div) No.171 of 2023
                                               and A.No.3328 of 2023


                     T.K. Usman Sarjun                                     ... Petitioner

                                                         Vs.

                     Emperor Entertainment,
                     Rep. by its Proprietor, Mr.Irfan Malik,
                     26, Mahalakshmi Flats,
                     4A, 3rd Floor, Tank Bund Road,
                     Nungambakkam,
                     Chennai – 600 034.                                    ... Respondent



                     Prayer : Arbitration Original Petition (Commercial Division) filed
                     under Section 11(6) of the Arbitration and Conciliation Act, 1996,
                     praying to appoint a Sole Arbitrator to resolve the disputes between the
                     parties herein with respect of the Director Agreement dated 11.11.2020.


                                     For Petitioner   : Mr.N. Vishvanth

                                     For Respondent   : No appearance – Set exparte



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                                                                     ARB.O.P.(Com.Div) No.171 of 2023

                                                           ORDER

This petition has been filed under Section 11 of the Arbitration

and Conciliation Act seeking for appointment of an Arbitrator by this

Court.

2. The petitioner was appointed as a Director for the feature film

by name “Blood Money” by the respondent under a Director Agreement

dated 11.11.2020. The petitioner claims that only a part of his

remuneration was paid by the respondent as per the Director Agreement

dated 11.11.2020. According to the petitioner, a sum of Rs.23,16,000/-

is still due and payable by the respondent to the petitioner as per the

Director Agreement dated 11.11.2020 entered into between the

petitioner and the respondent. There is an arbitration clause available in

the Director Agreement dated 11.11.2020, which is extracted

hereunder:-

“19.2 Any dispute/s and/or difference/s between the parties shall at first attempted to be resolved by mutual discussions between the parties hereto, failing which, such dispute/difference will be referred to arbitration

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ARB.O.P.(Com.Div) No.171 of 2023

in accordance to the provisions of the Arbitration and Conciliation Act, 1996 as amended from time to time, presided over by a sole arbitrator to be appointed by the Madras High Court on an application moved by any one of the parties to this Agreement. Judgment upon the arbitral award may be entered in any competent court at Chennai having jurisdiction over the Parties or their assets. The arbitration proceedings shall be held at Chennai. The arbitration proceedings shall be conducted in the English language. The parties shall bear the costs of arbitration equally. The award passed by the sole arbitrator shall be final and binding on the parties.”

3. The petitioner has also invoked arbitration in accordance with

the arbitration clause by issuing a notice to the respondent on

10.01.2023. The arbitration invocation notice dated 10.01.2023 has

been returned with an endorsement 'No such person' as seen from the

returned cover which has been filed as a document in the typed set of

documents filed by the petitioner. Thereafter, the petitioner has also

sent an email to the respondent on 17.01.2023. The petitioner has also

filed his bank statements in the typed set of documents reflecting part

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ARB.O.P.(Com.Div) No.171 of 2023

payment made by the respondent under the Director Agreement dated

11.11.2020. There seems to be a dispute between the parties arising out

of the Director Agreement dated 11.11.2020. Since there is a valid

arbitration clause available in the Director Agreement dated 11.11.2020

and the petitioner has also invoked arbitration in accordance with the

arbitration clause by sending a notice to the respondent on 10.01.2023,

there being no consensus between the parties with regard to the name of

the Arbitrator, this Court has to necessarily appoint an Arbitrator as per

the provisions of Section 11 of the Arbitration and Conciliation Act,

1996.

4. The respondent has been duly served through substituted

service. Despite effecting substituted service on the respondent, the

respondent has failed to enter appearance in this petition. Earlier, the

notices sent to the respondent in this petition was returned 'unserved'

and only for the said reason, this Court had ordered substituted service

on the respondent. Since there is no representation on behalf of the

respondent till date, the respondent is set exparte by this Court.

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ARB.O.P.(Com.Div) No.171 of 2023

5. For the foregoing reasons, this Court appoints Mr.Vishnu

Mohan, Advocate, as the Sole Arbitrator to adjudicate the dispute

between the petitioner and the respondent arising out of the Director

Agreement dated 11.11.2020. Accordingly, this Arbitration Original

Petition is allowed as prayed for, by issuing the following directions:-

(a) This Court appoints Mr.Vishnu Mohan,

Advocate, having office at No.8, 8th Street,

Dr.Radhakrishnan Salai, Mylapore, Chennai – 600004,

as the Sole Arbitrator, to adjudicate the dispute

between the parties arising out of the Director

Agreement dated 11.11.2020.