Ata Capital Limited v. Royal Agencies
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 27.10.2025
CORAM
THE HONOURABLE Mr. JUSTICE N. ANAND VENKATESH M/s.Tata Capital Limited Rep by its Authorised Power Agent Having its Registered Office at 11th Floor, Tower-A, Peninsula Business Park Ganpatrao Kadam Marg, Lower Parel Mumbai - 400 013.
Having one of its Branch Office at :
I Floor, Centennial Square, No.6A Dr.Ambedkar Salai, Kodambakkam Chennai - 600 024.
.... Petitioner Vs 1.Royal Agencies Represented by its Proprietor Mohammed Mansoor P U 9/430, Pattiparambu Thiruvillwamala, Thrissur Kerala - 690 588.
2.Shamla.S Pallivasal, Pattiparambu Talappaly, Thrissur Kerala - 680 588.
... Respondents 1/7
Prayer : Application filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, praying to appoint an Arbitrator to adjudicate the disputes between the parties under the said Loan cum Guarantee (Chennai Finance) Agreement dated 31.05.2024 and pass orders. For Petitioner : Mr.M.Arunachalam For Respondents : Ms.K.Kalpika
ORDER
This petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 [for brevity hereinafter referred to as the "Act"] for appointment of an Arbitrator to adjudicate the dispute between the petitioner and the respondents.
2. When the matter came up for hearing on 28.08.2025, this Court passed the following order:
"This petition has been filed under Section 11 of the Arbitration and Conciliation Act, seeking for appointment of an arbitrator by this Court.
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2. There seems to be a dispute between the petitioner and the respondents, arising out of the loan cum guarantee agreement (Channel Finance) dated 31.05.2024. The Master Terms and Conditions dated 17.11.2023 is also part of the loan cum guarantee agreement (Channel Finance) dated 31.05.2024. In the said agreement, there exists an arbitration clause, which is extracted hereunder: 3/7
3. The petitioner has invoked arbitration in accordance with the arbitration clause by issuing notice to the respondents on 02.07.2025 to comply with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996. No reply has been received for the same. 4/7
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 in accordance with the arbitration clause by complying with the requirements of Section 21 of the Arbitration and Conciliation Act, 1996 and since there is no consensus between the parties with regard to the name of the arbitrator, this Court is issuing notice to the respondents, returnable by 25.09.2025. Private notice is also permitted. "
3. After notice was served on the respondents, the matter was listed today for final hearing.
4. Heard Mr.M.Arunachalam, learned counsel appearing for the petitioner and Ms.S.Kalpika, learned counsel appearing for the respondents. 5.
This Court considered the submissions on either side and also the materials available on record. This Court finds that there is a valid agreement between the parties in line with Section 7 of the Act, and it also contains an arbitration clause. Hence, to resolve the dispute between the parties, the matter is referred to a Sole Arbitrator.
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6. Mr.P.Valliappan, Senior Advocate, Office at No.21, (Old No.13-A) Karpagambal Nagar, Mylapore, Chennai - 600 004, Ph.No.:24990099; Mobile No.9884176177, Email ID: valliappanadvocate@gmail.com, is appointed as sole Arbitrator and the Arbitrator is requested to adjudicate the arbitral dispute that were arising between the parties by holding 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. 7.
This Arb. OP is disposed of in the above terms. There shall be no order as to costs.
27-10-2025 ds 6/7
N. ANAND VENKATESH., J ds 27.10.2025 7/7