Five Star Business Finance Limited v. Maydam Narayana

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 08.12.2025

CORAM

THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH FIVE STAR BUSINESS FINANCE LIMITED represented by its Legal Officer Mr.Madhu Sandan Someswaran Registered Office at New No.27, Old No.4, Taylor's Road, Kilpauk, Chennai - 600 010.

.... Petitioner Vs.

1.Maydam Narayana 2.Maidapur Mahananda 3.Vadla Ganga Prasad .... Respondents Arbitration Original Petition (Com.Div.) filed under Section 11(5) of the Arbitration and Conciliation Act, 1996, praying to appoint an Arbitrator to decide the disputes and difference between the petitioner and respondents in terms of Loan Agreement dated 28.06.2023. For Petitioner : Mr.S.Nataraj for Mr.P.H.Vinodh Pandian For Respondents : No appearance ***** 1/4

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 [for brevity 'the Act'] for appointment of an Arbitrator to decide the dispute and differences between the petitioner and the respondents in terms of the Loan Agreement dated 28.06.2023.

2. When the matter came up for hearing on 27.10.2025, this Court passed the following order:

"Learned counsel for the petitioner submitted that the private notice sent to the respondents have been returned unserved. Affidavit of service has also been filed.

2. In view of the above, there shall be a direction to the learned counsel for the petitioner to effect notice to the respondents through paper publication in a widely published newspaper at Telangana. The paper publication shall be effected on or before 07.11.2025 and notice shall be returnable by 17.11.2025.

3. Post on 17.11.2025."

3. Notice sent to the respondents was returned unserved and hence, this Court, by order dated 27.10.2025, directed learned counsel for petitioner to effect service on respondents through paper publication. Accordingly, paper publication has been effected and affidavit of service has been filed and the names of respondents have also been printed in the cause list. There is no appearance either in person or through counsel. 2/4

This Court finds that there is a valid agreement between the parties in line with Section 7 of the Act. The agreement also provides for arbitration clause in Article 10 of the Loan Agreement.

4. In view of the above, this Court is inclined to proceed further and appoint Sole Arbitrator and refer the dispute between the petitioner and the respondent to the Sole Arbitrator, which will be dealt with on its own merits and in accordance with law.

5. In the light of the above discussion, this Court appoints Mr.Naveen Kumar Murthi, Advocate, S2, 2nd Floor, Singapore Plaza, No.164/337, Linghi Chetty Street, Chennai - 600 001. [Mobile No.98847 40424], as the sole Arbitrator and the sole Arbitrator is requested to adjudicate the arbitral disputes that had arisen between the parties and render arbitral award by holding sittings in the 'Madras High Court Arbitration Centre under the aegis of this Court' (MHCAC) as per Madras High Court Arbitration Proceedings Rules 2017 and fee of Sole Arbitrator shall be in accordance with the Madras High Court Arbitration Centre (MHCAC) (Administrative Cost and Arbitrator's Fees) Rules 2017. 3/4

N.ANAND VENKATESH, J.

gm Accordingly, this petition is disposed of.

08.12.2025 Index:yes/no Speaking order/Non-speaking order NCC:yes/no gm 4/4