B. Ravi v. Arjun Chemicals Pvt Ltd., Rep.By Its Director,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 10.02.2023
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY Arb.O.P.No.52 of 2022 B.Ravi,b.rAVI, 1-8A, Seenikudikadu, Moovarkotai Post, Vaduvur, Thiruvarur District-614 109.
... Petitioner vs.
Arjun Chemicals Private Limited, Represented by its Directors, Plot No.78-79, Phase-II Sipcot Indl. Complex, Ranipet, Vellore-632 403.
And also having its corporate office at RVI Tower-2nd Floor, 149, Velachery Tambaram High Road, Chennai-600 100.
... Respondent PRAYER: Arbitration Original Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, pleased to (a) Appoint an arbitrator to adjudicate the disputes between the petitioner and the respondent in terms of the arbitration agreement dated 06.07.2011. For Petitioner : M/s.G.Santhosh Kumar Mr.Vigneshwar Elango 1/5
Mr.M.B.Elakkumanan For Respondent : Mr.Rohan Rajesekaran **********
ORDER
The petitioner seeks the constitution of an arbitral tribunal to adjudicate the disputes arising out of an Employment Agreement dated 06.07.2011 between the petitioner and the respondent.
2. This petition was filed after issuing a notice dated 27.06.2022 by which the arbitration clause was invoked. Since there was no reply to the said notice, the petitioner proceeded to file the present petition.
3. Learned counsel for the respondent invited my attention to the arbitration clause and pointed out that the said clause provides for the appointment of a neutral arbitrator by the auditors of the company. Since the petitioner did not request the auditors of the company to make such appointment, it is stated that the present petition is liable to be rejected. 2/5
4. The admitted position is that the contract between the parties provides for dispute resolution by arbitration. The relevant arbitration clause is set out below:
"9.5 Arbitration If any dispute arises between the Parties hereto during the subsistence of this Agreement or thereafter, in connection with the validity, interpretation, implementation or alleged breach of any provision of this Agreement, the dispute shall be referred to a sole Arbitrator who is a neutral and suitably qualified third party appointed by the auditors of the Company. The place of arbitration shall be Chennai. The arbitration proceeding shall be governed by the Arbitration and Conciliation Act, 1996. The arbitration proceedings shall be held in the English language."
5. The respondent also admits the receipt of the notice dated 27.06.2022 by which the petitioner made a claim for a sum of Rs.23,55,000/- and also pointed out that the dispute would be referred for arbitration in accordance with the arbitration clause in the Employment Agreement, if the demand made in the notice is not met within the period of 3/5
30 days. Admittedly, this notice was not replied to in spite of receipt thereof. The notice was issued in June 2022 and the petition was filed in November 2022. If the respondent intended to object on the ground that the auditors should be approached for the constitution of the arbitral tribunal, the respondent should have replied to the notice and called upon the petitioner to approach the auditors. Therefore, the respondent is not justified in raising such objection at this juncture and this objection is rejected.
6. In the result, Arb.O.P.No.52 of 2022 is allowed by appointing Ms.Chitra Narayan, Advocate, Mobile No.90940 31934, as the sole arbitrator. The sole arbitrator is called upon to enter upon reference and adjudicate the dispute. The fees and expenses in respect of the arbitral proceedings shall be fixed by the arbitral tribunal in consultation with the parties.
10.02.2023 Index : Yes / No Internet : Yes / No kal 4/5
SENTHILKUMAR RAMAMOORTHY,J kal Arb.O.P.No.52 of 2022 10.02.2023 5/5