M/S Coronation Infrastructure Pvt Ltd, v. Sundaram Finance Ltd,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
(ORDINARY ORIGINAL CIVIL JURISDICTION) THURSDAY, THE 10TH DAY OF MARCH 2022 THE HON'BLE MR. JUSTICE M. SUNDAR O.P.No. 424 of 2021 and A.No. 2012 of 2021 and Arb.Appln.No. 28 of 2021 O.P.No. 424 of 2021 and A.No. 2012 of 2021 :- In the matter of Arbitration and Conciliation Act, 1996 and In the matter of Loan Agreement No.M009300083/ Volvo FMX - 440 dated 30.06.2017
1. M/s.Coronation Infrastructure Pvt. Ltd., The Mira Corporate Suits, E01 & 2, Ishwar Nagar, Sriniwaspuri, South Delhi, New Delhi - 110 065.
2. Mr.Ranjit Singh Atwal (M/58 years) S/o.Sh.Surinder Singh Atwal, A - 18, Niti Bagh, Andrewsganj, South Ext - II, Delhi - 110 049, New Delhi.
3. Mr.Surinder Singh Atwal, S/o.Late G.S.Atwal, A - 18, Niti Bagh, Andrewsganj, South Ext - II, Delhi - 110 049, New Delhi.
... Petitioners/Applicants
- Vs -
1. Sundaram Finance Ltd., No.21, Patullos Road, Chennai - 600 002 Rep. by Mr.Sri Krishna, Senior Manager (Legal)
2. Mr.K.Balasubramanian (B.A.B.L.), Retired District Judge and Retired Registrar General, High Court, No.52/33A, Jeevan Bhima Nagar (LIC Colony), Anna Nagar West Extension, Chennai - 600 101.
... Respondents/Respondents O.P.No. 424 of 2021 :- Original Petition praying that this Hon'ble Court be pleased to pass an order :
(a) Declaring the mandate of the 2nd Respondent as the sole arbitrator is terminated in respect of the arbitration proceedings between the Petitioners and the 1st Respondent arising out of Loan Agreement No.M009300083.
(b) Directing the Respondents to pay the costs of these proceedings. A.No. 2012 of 2021 :- Application praying that this Hon'ble Court be pleased to pass an order to stay all further proceedings now pending before the 2nd Respondent in respect of the arbitration proceedings between the Petitioners and the 1st Respondent arising out of Loan Agreement No.M009300083/Volvo FMX 440 dated 30/06/2017.
Arb.Appln.No. 28 of 2021 :- In the matter of Arbitration and Conciliation Act, 1996 and In the matter of Arbitration of dispute between - M/s. Sundaram Finance Limited - and - M/s.Coronation Infrastructure Pvt. Ltd and Others - Loan Agreement No : M009300083;
dated 30.06.2017.
Sundaram Finance Ltd., No.21, Patullos Road, Chennai - 600 002 Rep. by its Assistant General Manager - Legal, Mr. Aluru Sri Krishna.
... Applicant/1st Respondent -VsM/s.Coronation Infrastructure Pvt. Ltd., The Mira Corporate Suits, E01 & 2, Ishwar Nagar, Sriniwaspuri, South Delhi, New Delhi - 110 065.
... Respondent / 1st Petitioner / 1st Applicant Arbitration Application praying that this Hon'ble Court be pleased to appoint Mr. A.N. Kasinath, Manager - ARC, of the applicant having office at Plot No-A/108, Second Floor, Banadev Bhawan, Saheed Nagar, BHUBANESWAR - 751007, Odisha as the Receiver to take custody of the vehicles morefully described in the Schedule to the Judge's Summons, from the respondent or wherever it is found and deliver it to the applicant with liberty to sell and to permit the advocate commissioner to obtain Police aid and to break open the premises within which the said vehicles are lying.
SCHEDULE Details of Vehicles
3. Nos. VOLVO CV TIPPERS bearing SI.No:
CHASSIS NO:
ENGINE NO:
REGISTRATION NO:
923909 495319 JH 09 Y 4412 923908 495339 JH 09 Y 5052 923907 495325 JH 09 Y 2916 This Original Petition along with these applications coming on this day before this court for hearing in the presence of M/s. Deepika Murali, Advocate for the Petitioners in O.P.No.424 of 2021 and the applicants in A.No.2012 of 2021 and the respondent in Arb.Appln.No.28 of 2021, and Mr.R.Uma Shankar, For M/s. Sri and Sankar Associates (Law Firm) Advocates for the Respondents in O.P.No.424 of 2021 and A.No.2012 of 2021 and the applicant in Arb.Appln.No.28 of 2021, and upon reading the Judges Summons and the affidavit of Mr.Aluru Sri Krishna filed in Arb.Appln.No.28 of 2021, and the order dated 08/09/2021 made in A.Nos. 2012 to 2019 of 2021 in O.P.Nos. 424, 435 to 441 of 2021, and It is ordered as follows : - That the Hon'ble Mr. Justice T. Ravindran (Retd.,), residing at New No.27, Old No.12, 3rd Avenue, Indira Nagar, Adyar, Chennai - 600 020 (Mob : 9941350926, 9444399700), a former Judge of this Court is nominated as Sole Arbitrator.
2. That the Hon'ble Arbitrator appointed herein, be and is hereby requested to enter upon reference, adjudicate qua disputes between the borrowers and Sundaram Finance Ltd., by holding sittings in the Madras High Court Arbitration and Conciliation Centre under the aegis of this Court (MHCAC).
3. That Sundaram Finance Ltd.,/the 1st respondent in O.P.No. 424 of 2021 shall be at liberty to file applications with similar/same prayer/s as in these applications or any other prayer or present the same applications.
4. That if such a course is adopted by Sundaram Finance Ltd., Hon'ble Arbitrator appointed herein, shall consider those application/s as application/s made under Section 17 of A and C Act and deal with the same on their own merits and in accordance with law uninfluenced by any view or opinion expressed in this order.
5. That the arbitral proceedings shall be held in accordance with the Madras High Court Arbitration Proceedings Rules, 2017.
6. That the fees of Hon'ble Arbitrator appointed herein shall be as per Madras High Court Arbitration Centre (MHCAC) (Administrative Cost and Arbitrator's Fees) Rules 2017.
7. That there shall be no order as to costs.
WITNESS THE HON'BLE MR. JUSTICE MUNISHWAR NATH BHANDARI, CHIEF JUSTICE, HIGH COURT AT MADRAS AFORESAID, THIS THE 10TH DAY OF MARCH 2022.
Sd/- ASSISTANT REGISTRAR (Comm Cases) //Certified to be true copy// Dated at Madras this the day of 2022. COURT OFFICER(O.S.) From 25th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format.
ED 25.03.2022 O.P.No. 424 of 2021 and A.No. 2012 of 2021 and Arb.Appln.No. 28 of 2021
ORDER
DATED : 10.03.2022 THE HON'BLE MR. JUSTICE M. SUNDAR FOR APPROVAL : 28.03.2022 APPROVED ON : 30.03.2022 Copy to :
1. The Hon'ble Mr. Justice T.Ravindran, Judge (Retd.,) High Court of Madras, Sole Arbitrator, New No.27, Old No.12, 3rd Avenue, Indira Nagar, Adyar, Chennai - 600 020.
(Mob : 9941350926 , 9444399700)
2. The Director, Tamil Nadu Mediation and Conciliation Centre, cum - Ex Officio Member, Madras High Court Arbitration Centre, Madras High Court, Chennai - 600 104.
(With Covering Letter)
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 10.03.2022
CORAM
THE HON'BLE MR. JUSTICE M.SUNDAR O.P.Nos.424, 435 to 441 of 2021 & A.Nos.2012 to 2019 of 2021 & Arb.Appln.Nos.28 to 35 of 2021 Arb.O.P (Com.Div.) No.424 of 2021
1. M/s.Coronation Infrastructure Pvt. Ltd., The Mira Corporate Suits E 01& Ishwar Nagar, Srinivaspuri South Delhi, New Delhi - 110 065.
2. Mr.Ranjit Singh Atwal
3. Mr.Surinder Singh Atwal ... Petitioners Vs.
1. Sundaram Finance Ltd., No.21, Patullos Road, Chennai - 600 002 Rep. by Mr.Sri Krishna, Senior Manager (Legal)
2. Mr.K.Balasubramanian (B.A.B.L) Retired District Judge and Retired Registrar General, High Court No.52/33A, Jeevan Bhima Nagar (LIC Colony) Anna Nagar West Extension, Chennai - 600 101 .... Respondents Original Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 to declare the mandate of the 2nd respondent as the sole arbitrator is terminated in respect of the arbitration proceedings between the Petitioners and the 1st Respondent arising out of Loan Agreement No.M009300093 and to pay the costs of these proceedings.
For Petitioner : Ms.Deepika Murali For Respondent : Mr.R.Umashankar for M/s. Sri and Shankar Associates (Law Firm) COMMON ORDER This common order will dispose of captioned 8 OPs and 16 applications. The captioned matters are listed under the cause list caption 'FOR REPORTING SETTLEMENT'.
2. The three petitioners in the captioned OPs who are borrowers /guarantors, shall be collectively referred to as 'borrowers'. To be noted, the expression 'borrowers' is used only for convenience and it shall not be seen as any expression of opinion on borrowing or the transaction of the petitioners with the first respondent Company. The first respondent in all 8 captioned OPs is a Company and this Court is informed that it is a 'Nonbanking Financial Company' ('NBFC' for the sake of brevity), from here on and henceforth for the sake of convenience the first respondent shall be referred to as 'SFL'. The second respondent in the captioned 8 OPs is an individual, a former judicial Officer who has been nominated as sole Arbitrator by SFL.
3. In the hearing today, Ms.Deepika Murali, learned counsel for borrowers and Mr.R.Umashankar of M/s.Sri and Shankar Associates (Law Firm) for SFL are before this Court. The presence of the aforementioned individual who has been nominated as sole Arbitrator by SFL is not necessary for disposal of captioned matters. This is more so owing to a clarificatory observation which shall be made infra in this order.
4. The aforementioned two learned counsel for the two adversaries, namely borrowers and SFL adverting to earlier proceedings made in the captioned matters in the previous listing on 03.03.2022, submit in unison that the settlement talks did not fructify and could not be concluded. To be noted, the settlement talks were qua the arbitrable disputes i.e., primary/main lis. However, owing to the trajectory the hearing has taken today, the captioned 8 OPs and 16 applications can be disposed of. This is owing to a memo filed by learned counsel for SFL i.e., a memo dated 09.03.2022, a scanned reproduction of which is as follows:
5. Learned counsel for borrowers submits that the aforementioned memo necessarily means that SFL is not opposing the prayer for termination of mandate as they agree for appointment of an Arbitrator by this Court at its discretion/choice. However, learned counsel submits that the choice of the sole Arbitrator is left to the discretion of this Court as instructions regarding the name proposed by SFL are not readily available. Therefore, solely as a matter of good order without this being seen as any expression of opinion on the name proposed by SFL, this Court deems it appropriate to appoint a sole Arbitrator.
6. Before doing that, this Court makes it clear that the course adopted in the hearing today and the instant order shall not be seen as expression of any opinion or view on the sole Arbitrator already appointed by SFL (second respondent in the captioned 8 OPs) whose mandate is being terminated. The prayer under Section 14 of A and C Act (though not contents of support affidavit) is being acceded to as it is not opposed and appointment of arbitrator is to facilitate and expedite the arbitral proceedings. Therefore, this order will not be seen as termination of mandate of second respondent in captioned OPs owing to expression of any view or opinion one way or the other.
7. In the light of the narrative thus far, the following common order is made:
a) Hon'ble Mr.Justice T.Ravindran (Retd.,), residing at New No.27, Old No.12, 3rd Avenue, Indira Nagar, Adyar, Chennai - 600 020 [Mob: 9941350926, 9444399700], a former Judge of this Court is nominated as sole Arbitrator;
b) Aforementioned Hon'ble Arbitrator is requested to enter upon reference, adjudicate qua disputes between the borrowers and SFL by holding sittings in the Madras High Court Arbitration and Conciliation Centre under the aegis of this Court (MHCAC); c) It is open to SFL to file applications with similar/same prayer/s as in the captioned 16 applications or any other prayer or present the same applications. If such a course is adopted by SFL, Hon'ble Arbitrator shall consider those application/s as application/s made under Section 17 of A and C Act and deal with the same on their own merits and in accordance with law uninfluenced by any view or opinion expressed in this order; d) The arbitral proceedings shall be held in accordance with the Madras High Court Arbitration Proceedings Rules, 2017 . The fees of Hon'ble Arbitrator shall be as per Madras High Court Arbitration Centre (MHCAC) (Administrative Cost and
Arbitrator's Fees) Rules 2017.
All the captioned OPs are disposed of in the aforesaid manner. There shall be no order as to costs.
Sd./- M.S.J., 10.03.2022 //Certified to be true copy// Dated at Madras this the day of 2022. COURT OFFICER(O.S.) From 25th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format.