M/S.Shrinithi Capital Private Ltd v. S.Umamheshwari W/O.Sripathy,

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 06-10-2025

CORAM

THE HONOURABLE MR JUSTICE N. ANAND VENKATESH Arb O.P(COM.DIV.) No. 341 of 2025

1. M/s. Shrinithi Capital Private Ltd Represented by its Chief Manager, Mr.R.Selvam at 2 nd Floor, 2A, Mookambika Complex, No.4, Lady Desika Road, Mylapore, Chennai 600 004

2. M/s.Shriram Finance Limited Represented by its Assistant Credit Manager Mr.M.Sakthivel, Sri Towers, Plot No.14A, South Phase Industrial Estate, Guindy, Chennai 600 032 Petitioners Vs

1. S.Umamaheshwari W/o.Sripathy, No.15, Subhash Nagar, 1st Street, Puthagram, Kolathur, Chennai 600 099

2. S.Naveenkumar S/o.Sripathy, No.15, Subhash Nagar, 1st Street,

Puthagram, Kolathur, Chennai 600 099

3. R.Mohanakrishan, S/o.Radhakrishnan No.49, Pardan Street, VGP Nagar, Mogappair, Chennai 600 037 Respondents PRAYER To Appoint a Sole Arbitrator to decide and adjudicate upon the dispute between the petitioner and respondents arising out of Loan cum Hypothecation Agreement dated 15.02.2023.

For Petitioners:

Mr.K.Sendurpandi For Respondents:

No appearance

ORDER

This original petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for brevity, hereinafter referred to as "the Act") to appoint a sole Arbitrator to adjudicate and decide the dispute between the petitioners and the respondents arising out of the loan cum hypothecation agreement dated 15.02.2023.

2. Though the respondents have been served with notice and their names are also printed in the cause list, there is no representation either in person or through counsel.

3. Heard the learned counsel appearing on behalf of the petitioners and

carefully perused the materials available on record.

4. The 1 st respondent approached the 1 st petitioner seeking for financial assistance for purchase of vehicle. In view of the same, the petitioner company extended a loan of a sum of Rs.15,00,000/- and this amount was supposed to be paid along with interest in 48 monthly installments commencing from 10.04.2023 and ending on 10.03.2027.

5. The 1 st respondent is the borrower. The 2 nd respondent is the coborrower and the 3 rd respondent is the guarantor under the loan agreement.

6. The 1 st respondent became a chronic defaulter and as on 22.04.2025, a sum of Rs.19,60,611/- is due and payable by the respondents 1 and 2 along with interest.

7. The notice was sent to the respondents on 23.07.2024 and the respondents 1 and 2 have refused to receive the notice and the 3 rd respondent has received the notice and did not give any reply. It is under these circumstances, the present petition has been filed before this Court.

8. This Court is convinced that the parties are governed by a valid agreement as contemplated under Section 7 of the Arbitration and Conciliation

Act, 1996 and the loan cum hypothecation agreement contains an arbitration clause at clause No.11, which is extracted hereunder:-

11. Arbitration The Borrower and Guarantor agrees and confirms that (a) All disputes, differences and rights or claims arising out of this agreement whether during its subsistence or thereafter shall be settled by Arbitration in accordance with the provisions of the Arbitration and conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the sole arbitration of an Arbitrator nominated and appointed by "SFL" The award given by such an arbitrator shall be final and binding on all the parties to this agreement.

(b) In the event of such an Arbitrator to whom the matter has been so referred, dying or becoming incapacitated due to health problems both mental and physical or does not pass the award within the reasonable period "SFL" shall appoint a new person to act as an Arbitrator. Such person shall be entitled to proceed with the reference from the stage at which it was left by his / her predecessor.

(c) The venue of Arbitration proceedings shall be Chennai and the langugage of Arbitration proceedings shall be in English.

9. In view of the above, Mrs.S.Suba Shiny, Advocate (residing at Flat No.2A, Sara Apartments, No.11, 4 th cross Street, CIR Colony, Mylapore, Chennai 600 004, Mobile No.9841434304, email-shinyadv@gmail.com is appointed as the sole Arbitrator and the Arbitrator is requested to enter upon reference qua the Agreement dated 15.02.2023, adjudicate the arbitral dispute that have arisen between the parties by holding the sittings in any venue in

Chennai to the convenience of all concerned and render an award. Fees of the sole Arbitrator shall be in accordance with the Madras High Court Arbitration Centre (MHCAC)(Administrative Cost and Arbitrator's Fees) Rules 2017.

10. This original petition is disposed of in the above terms. There shall be no order as to costs.

06-10-2025 Index:Yes/No Speaking/Non-speaking order Internet:Yes Registry is directed to communicate the copy of order forthwith ss

To

1. Mrs.S.Suba Shiny Flat No.2A, Sara Apartments No.11, 4 th Cross Street CIR Colony Mylapore, Chennai 600 004 (Mobile No.9841434304) (email: shinyadv@gmail.com)

2. The Director Tamil Nadu Mediation and Conciliation Centre-cum-Ex-Officio Member Madras High Court Arbitration Centre Chennai 600 104

3. S.Umamaheshwari W/o.Sripathy, No.15, Subhash Nagar, 1st Street, Puthagram, Kolathur, Chennai 600 099

4. S.Naveenkumar S/o.Sripathy, No.15, Subhash Nagar, 1st Street, Puthagram, Kolathur, Chennai 600 099

5. R.Mohanakrishan, S/o.Radhakrishnan No.49, Pardan Street, VGP Nagar, Mogappair, Chennai 600 037

N.ANAND VENKATESH J.

ss Arb O.P(COM.DIV.) No.

06-10-2025