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Madras High CourtArb O.P(COM.DIV.)/266/2023allowed

Same Deutz Fahr India Private Limited, Rep.By Mr.P.Ramesh, v. P.R.Tractors

2023-07-28Honourable Mr Justice Abdul Quddhose6 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 28.07.2023

CORAM

THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE Arb.O.P.(Comm.Div.) No.266 of 2023 Same Deutz Fahr India Pvt. Limited, Rep. By Mr.P.Ramesh No.72/72M/73-77, SIPCOT Industrial Complex, Ranipet - 632 403, Tamil Nadu.

..

Petitioner -vs1.M/s.P.R.Tractors, Partnership Firm, Having office at Bangalore Bypass Road, Sastha Nagar, Salem - 636004.

2.Mr.R.Pandurangan 3.Mr.T.Raja ..

Respondents Petition under Section 11 of the Arbitration and Conciliation Act, 1996, has been filed seeking to appoint a sole arbitrator to adjudicate the dispute between the petitioner and the respondents. For Petitioner : Ms.Prapti Mehta for M/s.Surana & Surana For Respondents : Ms.Rajeswari Karthikeyan 1/6

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996, seeking for appointment of an Arbitrator.

2. The petitioner is a manufacturer and the first respondent was its dealer. The petitioner and the first respondent had entered into a dealership agreement dated 10.01.2019. There seems to be a dispute between the parties arising out of the said agreement dated 10.01.2019. There is an arbitration clause available in the dealership agreement dated 10.01.2019, which is extracted hereunder:- "J. Dispute Resolution:

Any and all disputes, which may arise under, out of, in connection with, or in relation to this agreement, including those as to the application and/or interpretation of this agreement, or the legal relations and/or mutual rights, performance and obligations of the parties hereunder, shall be resolved through negotiations by the authorised officers or representatives of the company and the dealer before seeking outside resolution of the dispute.

Those disputes not resolved by 2/6

negotiations, within thirty (30) days from the date of notification of the disputes, shall be resolved through arbitration by a sole arbitrator to be appointed by the Director of the company, who may be authorised by the Board of Directors of the company in this regard.

The arbitration proceedings shall be held at Chennai in accordance with the provisions of the Arbitration and Conciliation Act, 1996 as in force in India or any statutory modifications or reenactments thereof. The courts at Ranipet / Vellore alone shall have exclusive jurisdiction in all matters arising out of this agreement."

3. The petitioner has invoked the arbitration clause by issuing a notice dated 23.01.2023 to the respondents. The said invocation notice has been delivered on the first respondent on 30.01.2023 as seen from the tracking sheet annexed in the typed set of papers. However, till date, the first respondent has neither replied to the said notice nor suggested any name for appointment of an arbitrator.

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4. Till date, no counter affidavit has been filed in this application. However, the learned counsel for the respondents would submit that the arbitration clause enables the petitioner to appoint an arbitrator unilaterally.

5. The said contention will have to be rejected due to the reason that the petitioner has approached this Court under Section 11 of the Arbitration and Conciliation Act, 1996, only on the ground that unilateral appointment of an arbitrator is not legally permissible. Therefore, there cannot be any prohibition for this Court to appoint an arbitrator, when there is an arbitration clause available in the dealership agreement dated 10.01.2019.

6. Since the petitioner has adhered to the provisions of Section 21 of the Arbitration and Conciliation Act, 1996, by sending a notice dated 23.01.2023 and that the dealership agreement dated 10.01.2019 also contains the arbitration clause, this Court will have to entertain this petition seeking for appointment of an arbitrator.

7. For the foregoing reasons, this petition is allowed with the 4/6

following directions:- (a) This Court hereby appoints Mrs.S.Suba Shiny, advocate, residing at Flat No.B, Ground Floor, Balaji Shree Apartments, No.40-41, 6th main road, RA Puram, Chennai - 28 (Mobile No.9841434304), as the sole arbitrator to adjudicate the dispute between the petitioner and the respondents arising out the dealership agreement dated 10.01.2019. (b) The Sole Arbitrator appointed by this Court shall be paid remuneration as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996.

(c) The Arbitrator shall adhere to the provisions 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.

28.07.2023 rkm 5/6

ABDUL QUDDHOSE, J.

rkm Arb.O.P.(Comm.Div.) No.266 of 2023 28.07.2023 6/6