Mrs.Lalitha Gopalakrishnan vs Mr.A.Shankar
2024 Latest Caselaw 17461 Mad

Madras High Court

Mrs.Lalitha Gopalakrishnan vs Mr.A.Shankar on 3 September, 2024

                                                                            Arb.O.P(Com.Div.) No.286 of 2024



                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED : 03.09.2024

                                                         CORAM :

                           THE HONOURABLE MR.JUSTICE K. KUMARESH BABU

                                             Arb.O.P.(Com.Div.) No.286 of 2024

                Mrs.Lalitha Gopalakrishnan                                                  ... Petitioner

                                                            Vs.

                Mr.A.Shankar                                                             ... Respondent

                Prayer: Original Petition is filed under Section 11(6)(a)&(c) of the Arbitration
                and Conciliation Act, 1996 amended for appointment of the Arbitrator to
                appoint a sole arbitrator and to direct the arbitration proceedings in the matter of
                LOAN AGREEMENT dated 22.09.2023.

                                    For Petitioner     : M/s.Kiran Rani
                                                             for KNS Law Chambers.

                                    For Respondent     : Mr.A.Palaniappan

                                                          ORDER

This petition has been filed to appoint a sole arbitrator and to direct the

arbitration proceedings in the matter of LOAN AGREEMENT dated

22.09.2023.

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Arb.O.P(Com.Div.) No.286 of 2024

2. The learned counsel for the respondent placed reliance on the counter

affidavit filed by the respondent and vehemently contended that there was no

purpose or necessity for the respondent to enter into the loan transaction and

that various other previous transaction has been suppressed by the petitioner.

He would further contend, since there was no transfer of consideration under the

loan agreement, the dispute does not fall within the ambit of Clause 7 of the

alleged loan agreement and therefore prayed this Court to dismiss the present

petition.

3. A loan agreement has been placed before this Court, in which the

respondent is a signatory and the said loan agreement also contains a clause for

Arbitration. The claim placed by the respondent are all the disputed question of

fact, which can only be resolved in the Arbitration proceedings.

4. In the recent judgment of the Hon'ble Apex Court, it has been held that

the such issues cannot be decided in a proceedings under Section 11 of the

Arbitration Act and this Court had to look into the issue whether there is an

Arbitration Agreement between the parties to resolve the dispute among

themselves. When that be the case, this Court is unable to sustain the arguments

of the learned counsel for the respondent.

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Arb.O.P(Com.Div.) No.286 of 2024

5. In fine, I am inclined to appoint Mr.V.Nallasenapathy, Advocate

Mobile No.98415-27190, No.15, Shanthi Nagar, Korattur, Chennai – 600050

as sole Arbitrator to enter upon the dispute between the parties. The learned Sole

Arbitrator is entitled to fix his fees as per the Schedule-IV to the Act. This Court

further requests the learned Sole Arbitrator to endeavour to decide the dispute as

expeditiously as possible preferably within a period of six months from the date

of completion of pleadings.

6. Accordingly, this arbitration petition is ordered.

03.09.2024 Index : Yes/No Internet : Yes/No Speaking Order/Non-Speaking Order Neutral Citation : Yes/No tsh

K. KUMARESH BABU, J.

https://www.mhc.tn.gov.in/judis

Arb.O.P(Com.Div.) No.286 of 2024

tsh

Arb.O.P.(Com.Div.) No.286 of 2024

03.09.2024

https://www.mhc.tn.gov.in/judis