Mr.O Arumugamsamy v. M.Leela

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 18.01.2024 CORAM :

THE HONOURABLE MR.JUSTICE C.SARAVANAN Arb.O.P.(Com.Div.) No.555 of 2023 O.Arumugasamy ... Petitioner Vs.

1.M.Leela 2.M.Aarthi 3.Kiran Nagaraj 4.M.Avinash ... Respondents Prayer: Original Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, praying for appointment of an Arbitrator on behalf of the respondents in terms of Clause 7 of the Memorandum of Understanding dated 06.10.2007 to enable constitution of an Arbitration Tribunal comprising of Honourable Justice Vasuki (Retd.) (Petitioner nominated Arbitrator), Second Arbitrator appointed by this Honourable Court and Third Arbitrator to be appointed by the said two Arbitrators to resolve the disputes between parties, in accordance with the Arbitration & Conciliation Act, 1996 and to direct the respondents to pay the petitioner, costs of the petition. For Petitioner : Ms.R.Vidhya Shankar For Respondents : Mr.Niranjan Rajagopal 1/4

ORDER

This Original Petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator.

2. Mr.Niranjan Rajagopal, learned counsel appears on behalf of the respondents and submits that vakalat on behalf of the third respondent will be filed by end of this week.

3. Both the learned counsels have consented for appointment of Mr.Kabir.M.K., Senior Advocate, as a Sole Arbitrator to resolve the dispute between the parties, although the arbitration clause contemplates an Arbitral Tribunal proceeded over by three members consisting of two nominee arbitrators and one presiding arbitrator.

4. Recording the same, Mr.Kabir.M.K., Senior Advocate, having Office at No.80, Law Chambers, High Court Buildings, Chennai - 600 104, (Moblie No.98400 44258), is appointed as a Sole Arbitrator to enter upon reference to adjudicate the inter se dispute between the parties. 2/4

5. The learned Arbitrator appointed herein, shall after issuing notice to the parties and upon hearing them, endeavour to complete the arbitral proceedings and pass an award strictly in accordance with the provisions of the Arbitration and Conciliation Act, 1996, as expeditiously as possible, preferably within a period of twelve months after the date of completion of pleadings under SubSection 4 to Section 23 as is contemplated in Section 29A of the Arbitration and Conciliation Act, 1996, without getting influenced by any of the observations made by this Court in this order touching on limitation.

6. The learned Arbitrator appointed herein, shall be paid fees and other incidental charges as may be fixed with the consent of parties or in accordance with the provisions of the Arbitration and Conciliation Act, 1996, and the same shall be borne by the parties equally. In case, the respondents remain ex parte, the petitioner shall pay the entire fee and other incidental charges to the Arbitrator and later recover the same from the respondents.

7. Since this Court has appointed the Arbitrator, it is open to the petitioner as well as the respondents to seek other reliefs under Section 17 of the Arbitration and Conciliation Act, 1996, before the learned Arbitrator. C.SARAVANAN, J.

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8. All the issues relating to merits including limitation shall be decided by the arbitrator under Section 16 of the Arbitration and Conciliation Act, 1996.

9. This Original Petition is allowed accordingly, leaving the parties to bear their own costs.

18.01.2024 Index : Yes/No Internet : Yes/No Speaking Order/Non-Speaking Order arb Arb.O.P.(Com.Div.) No.555 of 2023 4/4