Five Star Business Finance Limited v. Gundu Ramesh

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 19.06.2025

CORAM

THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE Arb.O.P.(Comm.Div.) No.195 of 2025 Five Star Business Finance Ltd., Chennai.

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Petitioner -vs1.Gundu Ramesh 2.Gundu Praveen 3.Gundu Yadamma 4.Gundu Balakrishna ..

Respondents Petition under Section 11 of the Arbitration and Conciliation Act, 1996, has been filed seeking to appoint an arbitrator to resolve the disputes between the parties arising out of loan agreement dated 30.06.2023.

For Petitioner : Mr.T.Aravindraj Respondents - set exparte 1/5

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (in short "the Act") seeking for appointment of an Arbitrator by this Court.

2. There seems to be a dispute between the petitioner and the respondents arising out of the loan agreement dated 30.06.2023, which contains an arbitration clause. Article 10 of the loan agreement dated 30.06.2023 is the arbitration clause. The petitioner has invoked arbitration in accordance with the arbitration clause by issuing notice to the respondents on 04.12.2024. No reply has been received for the same. Therefore, it became necessary for the petitioner to file this petition under Section 11 of the Act seeking for appointment of an Arbitrator by this Court.

3. Notice sent to the respondents in this petition has been duly served. The affidavit of service enclosing delivery reports has been filed. Names of the respondents are also printed in the cause list today. However, no one has entered appearance today on behalf of the respondents. Hence, the respondents are set exparte by this Court. 2/5

4. Since there exists an arbitration clause in the contract, which is the subject matter of the dispute between the parties, and since the petitioner has invoked arbitration by issuing notice to the respondents on 04.12.2024 in compliance with Section 21 of the Act and since there is no consensus between the parties with regard to the name of the Arbitrator, this Court will have to appoint an Arbitrator. Accordingly, this petition is allowed with the following directions:- (a) This Court hereby appoints Mr.P.M.N.Bhagavath Krishnan, Advocate, having office at Flat No.1, Marvel Vasudev, No.11, Venkatesa Agraharam Street, Mylapore, Chennai-4 (Mobile No.9566277892), as the Sole Arbitrator to adjudicate the dispute between the petitioner and the respondents arising out the loan agreement dated 30.06.2023.

(b) The Sole Arbitrator appointed by this Court shall be paid remuneration/fees as per the schedule agreed upon by the parties to the dispute.

(c) The Arbitrator shall adhere to the provisions 3/5

of Arbitration and Conciliation Act, 1996.

(d) The Arbitrator shall also pass the arbitral award within the stipulated period as prescribed under the Arbitration and Conciliation Act, 1996.

19.06.2025 rkm Index:yes/no ABDUL QUDDHOSE, J.

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rkm Arb.O.P.(Comm.Div.) No.195 of 19.06.2025 5/5