[Cites 3, Cited by 0]
Madras High Court
Tata Capital Limited vs Nihar Hospitality Private Limited on 12 March, 2026
Author: Senthilkumar Ramamoorthy
Bench: Senthilkumar Ramamoorthy
Arb O.P(COM.DIV.) No. 213 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12.03.2026
CORAM
THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY
Arb O.P(COM.DIV.) No. 213 of 2026
Tata Capital Limited
(Formerly known as
Tata Capital Financial Services Ltd.,)
Registered Office at 11th Floor, Tower A,
Peninsula Business Park, Ganpatrao Kadam Marg,
Lower Parel, Mumbai - 400 013, Maharashtra.
Branch Office at Centennial Squares, 1st floor,
No.6A, Dr.Ambedkar Salai,
Kodambakkam, Chennai - 600 024.
Represented by its Authorized Signatory
Ramkumar
..Petitioner(s)
Vs
1. Nihar Hospitality Private Limited,
Office No.328, 329, 3rd Floor, Abhishek
Complex, Juna Padra Road, Vadodara,
Gujarat, Pincode 390020.
2. Mr.Ashok Kumar S.Saluja,
S/o.Mr.Sant Lal Saluja,
Office No.328, 329, 3rd Floor, Abhishek
Complex, Juna Padra Road, Vadodara,
Gujarat, Pincode 390020.
Also at
Tower B-201, 202, Samanvay Sparash, M I
Estate, Vadasar Road, Vadodara,
Gujarat 390010
3. Mrs.Neha Saluja,
Office No.328, 329, 3rd Floor, Abhishek
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Arb O.P(COM.DIV.) No. 213 of 2026
Complex, Juna Padra Road, Vadodara,
Gujarat, Pincode 390020.
Also at
Tower B-201, 202, Samanvay Sparash, M I
Estate, Vadasar Road, Vadodara,
Gujarat 390010
..Respondent(s)
PRAYER: Arbitration Original Petition (Commercial Division) is filed under
Section 11(5) & (6) of the Arbitration and Conciliation Act, 1996, pleased to
appoint a Sole Arbitrator to adjudicate the differences and disputes between the
petitioner and the respondents under the Loan Agreement dated 17.07.2025
Bearing Reference Number TCFBL0202000013907728.
For Petitioner(s): Mr.P.Suresh
*********
ORDER
After issuing notice dated 08.01.2026 invoking clause 9 of the agreement
for business loan between the parties, the present petition has been filed under
Section 11(5) of the Arbitration and Conciliation Act, 1996 (the A & C Act).
2. The arbitration clause between the parties reads as under:
“9. Arbitration
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Arb O.P(COM.DIV.) No. 213 of 2026
If any dispute, difference or claim arises between any of the
Obligors and the Lender in connection with the Facility or as
to the interpretation, validity, implementation or effect of the
Facility Documents or as to the rights and liabilities of the
parties under the Facility Documents or alleged breach of the
Facility Documents or anything done or omitted to be done
pursuant to the Facility Documents, the same shall be settled
by arbitration by a sole arbitrator to be appointed by any of
the following institutions:
(a) The Council for National and International
Commercial Arbitration having its office at Unit No.208, 2nd
Floor, Beta Wing, Raheja Towers, Nos.113-134, Anna Salai,
Chennai – 600002.
(b) Centre for Online Resolution of Disputes having its
office at F-14, 3rd Cross, Manyata Residency, Manyata Tech
Park, Bengaluru 560045.
(c) The Centre for Alternative Dispute Resolution
Excellence having its office at 107C, Mulberry Woods,
Janatha Colony, Carmelaram Station Road, Doddakanneli,
Bengaluru – 560035.
(d) ADR E-Sarvatra Private Limited having its office at
63, Palace Road, Vasanth Nagar, Bengaluru – 560052.
(e) Madras Alternate Dispute Resolution Centre
(MADRC), having its office at C-40, 2nd floor, 2nd Avenue,
Anna Nagar West, Chennai-600 040.
(f) Lex Carta Private Limited (Just Act), having its office
at T4, 7th Street, Dr VSI Estate Phase 2, Thiruvanmiyur,
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Arb O.P(COM.DIV.) No. 213 of 2026
Chennai, Tamil Nadu – 600 041.
(g) The Madras Chamber of Commerce & Industry
(MCCI), having its office at "Karumuttu Center”, 1st Floor,
634, Anna Salai, Chennai-600 035.
(h) Any arbitral institution designated under the
provisions of the Arbitration or Conciliation Act, 1996 ("the
Act) or any panel of arbitrator maintained under the
provisions of that Act;
hereinafter referred to as ("Institution") in accordance with
the rules of the Institution as prevailing and as amended from
time to time.
The arbitration proceedings shall be based on documents only
which shall be conducted through exchange of e-mail and/or
any other mode of electronic communication as permitted by
the rules of the Institution or through an online dispute
resolution by the web portal offered by the Institution. The
parties hereby agree that the arbitral proceeding shall be
conducted in electronic mode and all pleadings and
documents will be exchanged electronically. There shall be no
in-person and/or oral hearings except in certain exceptional
circumstances as the sole arbitrator may deem fit upon the
request of either of the parties. In such instances, the hearings
shall be conducted virtually at the sole discretion of the
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Arb O.P(COM.DIV.) No. 213 of 2026
arbitrator. The seat of arbitration for all purposes shall be
deemed to be such place as mentioned in Annexure I of the
Agreement. The language of arbitral proceedings shall be
English.
In the event the arbitrator to whom the matter is originally
referred, resigns or dies or is unable to act for any reason, the
Institution shall appoint another person in his/her place to act
as arbitrator/who shall proceed with the reference from the
stage at which it was left by his/her predecessor.
The arbitrator so appointed shall have the power to pass an
award and also to pass interim orders/directions as may be
appropriate to protect the interest of the parties pending
resolution of the dispute. A certified copy of the award passed
by the arbitrator, a digitally signed copy of the same or a scan
copy of the same shall be sent to the parties through e-mail or
any other electronic mode including the web portal as the
Institution deems fit which shall be considered as a signed
copy.
All notices, processes and communications between the
parties with respect to the arbitration proceedings shall be
through e-mail or another mode of communication permitted
by the Institution notwithstanding the notice clause contained
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in the Agreement which shall continue to apply to all other
communications between the parties.
It shall be the responsibility of the Lender and Obligor(s) to
maintain sufficient space in the e-mail account and/or in any
other mode of electronic account(s) and also to have
supporting applications / software in their computer / mobile /
any other electronic device to access the electronic documents
sent to them. It shall also be the responsibility of the Lender
and Obligor(s) to save the emails in the address book. The
delivery of emails to spam, promotion, etc., shall also be a
deemed delivery.
The courts at such place as mentioned in Annexure I of the
Agreement shall have exclusive jurisdiction in respect of
matters arising hereunder including any petition for
appointment of an arbitrator under Section 11 of the
Arbitration and Conciliation Act. 1996 / application for
setting aside the award/appeal and the Lender/Obligor(s)
shall not object to such jurisdiction. The arbitration shall be
conducted under the provisions of the Arbitration and
Conciliation Act, 1996 together with its amendments, any
statutory modifications or re-enactment thereof for the time
being in force. The award of the arbitrator shall be final and
binding on all parties concerned. The cost of arbitration shall
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Arb O.P(COM.DIV.) No. 213 of 2026
be borne by the Borrower. ”
Upon a dispute arising between the parties, the petitioner issued notice dated
08.01.2026 specifying the list of institutions authorised to appoint the arbitrator
under the contract. The petitioner also called upon the respondents to select one
of the institutions for purposes of making such appointment. Because the
respondents did not respond to the notice, the present petition has been filed.
3. Under Section 11(2) of the A & C Act, the parties are free to agree on a
procedure for appointing the arbitrator. As per sub-section (6) of Section 11, if a
party or institution fails to perform a function entrusted under the agreement
appointment procedure, the person aggrieved is entitled to approach this Court.
4. In the case at hand, it is evident from the arbitration clause that there is
an agreed appointment procedure. Therefore, the petitioner should have
requested one of the institutions mentioned in clause 9 to make the appointment.
Upon failure by such institution to make the appointment, the petitioner would
be entitled to approach this Court.
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Arb O.P(COM.DIV.) No. 213 of 2026
5. Because the petitioner has approached this Court prematurely without
adhering to the procedure prescribed in the contract, this petition is disposed of
by leaving it open to the petitioner to re-apply if appointment cannot be made in
accordance with the agreed appointment procedure in spite of the petitioner
making necessary efforts in that regard. There will be no order as to costs.
12.03.2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
RNA
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Arb O.P(COM.DIV.) No. 213 of 2026
SENTHILKUMAR RAMAMOORTHY, J.
RNA
Arb O.P(COM.DIV.) No. 213 of 2026
12.03.2026
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