Aditya Birla Finance Limited v. Sureshbabu Alagar

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION SHRADDHA KAMLESH TALEKAR ARBITRATION APPLICATION NO. 151 OF 2024 SHRADDHA KAMLESH TALEKAR Date: 2025.02.24 15:05:59 +0530 Aditya Birla Finance Limited ...Applicant

Versus

Sreshbabu Alagar

...Respondent

Ms. Tikshta Modi a/w. Anit Kumar i/b Akhil Modi and Associates, for Applicant.

None for Respondent.

CORAM : SOMASEKHAR SUNDARESAN, J.

Date : February 17, 2025 P. C.

1.

This is an Application has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 ("the Act"), seeking appointment of an arbitrator in connection with disputes and differences that are said to have arisen between the parties under an agreement dated February 23, 2024 ("Agreement"), which contains an arbitration clause (found at Page 37 of the Application). In the interest of brevity, the arbitration agreement is not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court.

2.

Learned Counsel for the Applicant has tendered service affidavits dated August 21, 2024 and February 2, 2025. Service Affidavits are taken on record.

3.

It is apparent from the record that the default under the Agreement is said to have been occurred in February 2024. A loan recall cum invocation notice was issued on May 16, 2024. Despite service, the Respondent has not entered appearance.

4.

The scope of review under Section 11(6A) is explicitly set out in Section 11 of the Act. It is now trite law, with particular regard to the Supreme Court's decision rendered by a seven-judge Bench in the Interplay Judgement1 followed by multiple others, including SBI General2 and Patel3 that the Section 11 Court ought not to venture beyond examining the existence of a validly existing arbitration agreement that has been formally executed. Even questions of existential substance is a matter that falls squarely in the domain of the arbitral tribunal, in view of Section 16 of the Act.

5.

Being satisfied that an arbitration agreement is validly in existence, and that arbitration has been duly invoked, it is in the fitness of things to refer the disputes and differences between the parties in connection with the aforesaid Agreement to arbitration by a Sole Arbitrator. 1 In Re: Interplay Between Arbitration Agreement under Arbitration and Conciliation Act, 1996 and Stamp Act, 1899 - (2024) 6 SCC 1 2 SBI General Insurance Co. Ltd. Vs. Krish Spinning - 2024 SCC OnLine SC 1754 3 Ajay Madhusudan Patel Vs. Jyotindra S. Patel - 2024 SCC OnLine, SC 2597

6.

In these circumstances, this Application is finally disposed of sending the parties to conduct arbitral proceedings before the Arbitral Tribunal appointed hereby in the following terms :

A] Ms. Rucha Vaidya, an advocate of this Court, is hereby appointed as the Sole Arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreement referred to above; Office Address : 208, Gundecha Chambers, Nagindas Master Road, Kala Ghoda, Fort, Mumbai - 400 001. Email ID:

vaidru.rv@gmail.com B] A copy of this Order will be communicated to the Learned Sole Arbitrator by the Advocates for the Applicant within a period of one week from the date on which this order is uploaded on the website of this Court. The Applicant shall provide the contact and communication particulars of the parties to the Arbitral Tribunal along with a copy of this Order; C] The Learned Sole Arbitrator is requested to forward the statutory Statement of Disclosure under Section 11(8) read with Section 12(1) of the Act to the Advocates for the Applicant so as to enable them to file the same in the Registry of this Court. The Registry of this Court shall retain the said Statement on the file of this Application and a copy of the same shall be furnished by the Advocates for the Applicant to the Respondent.

D] The parties shall appear before the Learned Sole Arbitrator on such date and at such place as indicated, to obtain appropriate directions with regard to conduct of the arbitration including fixing a schedule for pleadings, examination of witnesses, if any, schedule of hearings etc. At such meeting, the parties shall provide a valid and functional email address along with mobile and landline numbers of the respective Advocates of the parties to the Arbitral Tribunal. Communications to such email addresses shall constitute valid service of correspondence in connection with the arbitration;

E] All arbitral costs and fees of the Arbitral Tribunal shall be borne by the parties equally in the first instance, and shall be subject to any final Award that may be passed by the Tribunal in relation to costs.

7.

Needless to say, nothing contained in this order is an expression of an opinion on merits of the matter or the relative strength of the parties. All issues on merits are expressly kept open to be agitated before the arbitral tribunal appointed hereby.

8.

All actions required to be taken pursuant to this order, shall be taken upon receipt of a downloaded copy as available on this Court's website. [ SOMASEKHAR SUNDARESAN, J.]