M/S Vidura Engineering And ... vs M/S Tata Motors Limited.
2025 Latest Caselaw 3440 Tel

Telangana High Court

M/S Vidura Engineering And ... vs M/S Tata Motors Limited. on 26 March, 2025

Author: B. Vijaysen Reddy

Bench: B. Vijaysen Reddy

      HONOURABLE SRI JUSTICE B. VIJAYSEN REDDY

        ARBITRATION APPLICATION No.304 OF 2024

ORDER :

(ORAL)

This application is filed seeking to appoint a sole arbitrator to

adjudicate the disputes between the applicant and the respondents arisen

out of the terms and conditions contained in the tax invoice copy dated

25.01.2023.

2. Heard learned counsel for the applicant; learned counsel for

respondent No.1, and learned counsel for respondent No.2; and perused

the material on record.

3. Learned counsel for the respondent No.2 submitted that

respondent No.2 is not opposing this instant application.

4. Learned counsel for respondent No.1 submitted that respondent

No.1 is the manufacturer of the subject vehicles. There is no privity of

contract between the applicant and respondent No.1 and claims, if any,

made by the applicant can be only against respondent No.2 who sold the

vehicles to the applicant and received the purchase amount.

5. Learned counsel for the applicant relied upon the judgment of the

Hon'ble Supreme Court in Cox & Kings Ltd. v. SAP India Pvt. Ltd.

& anr 1 and submitted that the arbitrability of the dispute as against

respondent No.1 will have to be decided by the learned arbitrator.

Respondent No.1 is the manufacturer and respondent No.2 is the

authorized dealer of respondent No.1 and the claim of the applicant is

regarding the delivery of defective vehicles by respondent No.2

manufactured by respondent No.1.

6. Learned counsel for respondent No.1 submitted that in case this

Court is inclined to allow this instant application, liberty may be given to

respondent No.1 to raise preliminary objection regarding the

maintainability before the learned arbitrator.

7. In the circumstances, this application is allowed appointing

Mr. M. Rajender, District Judge (Retired), Villa No.142, Keerthi

Richmond Villas, Suncity, Phase-1, Hyderabad - 500086 as Arbitrator to

adjudicate the claims and disputes between the parties and to pass an

award in accordance with law. The parties are at liberty to raise all

factual and legal grounds in support of their respective claims.

8. The learned Arbitrator is entitled to fees as per the rates specified

in the Fourth Schedule to the Arbitration and Conciliation Act 1996

1 2024 INSC 670

inserted by the Arbitration and Conciliation (Amendment) Act 2015,

No.3 of 2016, with effect from 23.10.2015, which shall be borne by both

parties in equal shares.

As a sequel thereto, miscellaneous applications, if any, pending in

this application stand closed.

______________________ B. VIJAYSEN REDDY, J March 26, 2025 RRK