Siemens Financial Services Pvt Ltd v. Debranjan Hazra

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMMERCIAL ARBITRATION APPLICATION NO. 124 OF 2025 Siemens Financial Services Pvt Ltd ...Applicant

Versus

Debranjan Hazra & Anr

...Respondents

Ms. Diksha Tripathi, a/w Isha Palas, i/b India Law LLP, for the Applicant.

None for Respondents.

CORAM

: SOMASEKHAR SUNDARESAN, J.

DATE : MARCH 21, 2025 PC :

1.

This 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 Finance Agreements dated August 4, 2022 ("Agreement"). The arbitration agreement is contained in Clause 16(e) (found at Page 55 of the Application). In the interest of brevity, the arbitration agreements are not being extracted here. Suffice it to say that this matter falls within the jurisdiction of this Court. 2.

It is seen from the three service affidavits dated February 19, Digitally signed by ASHWINI JANARDAN VALLAKATI Date:

2025.04.03 10:55:28 +0530 ASHWINI JANARDAN VALLAKATI

2025 and the one dated February 21, 2025 that the Respondents have indeed been served but there is no reply to the invocation notice dated November 19, 2024. Since service to the Respondents have also been effected, no useful purpose would be served in keeping these proceedings pending on the docket of this Court any further. 3.

The scope of review under Section 11 is explicitly set out in Section 11(6A) of the Act. It is now trite law, with particular regard to the decisions of 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. 4.

Being satisfied that the arbitration agreements are 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 1 In Re: Interplay Between Arbitration Agreements Under Arbitration and Conciliation Act, 1996 & Stamp Act, 1899 - (2024) 6 SCC 1 2 SBI General Insurance Co. Ltd. v. Krish Spinning - 2024 SCC OnLine SC 1754 3 Ajay Madhusudan Patel v. Jyotrindra S. Patel - 2024 SCC OnLine SC 2597

Arbitrator.

5.

In these circumstances, this Application is hereby finally disposed of, in terms of the following order: a) The disputes and differences covered by this Application is hereby referred to the Mumbai Centre for International Arbitration (https://mcia.org.in), in terms of its Institutional Arbitration Rules, to appoint an appropriate arbitrator to adjudicate upon the disputes and differences between the parties arising out of and in connection with the Agreements referred to above, and to administer the arbitration;

b) A copy of this Order will be communicated to the Mumbai Centre for International Arbitration by the Advocates for the Applicant 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 Centre 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 Petitioner 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 these Applications 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.

6.

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. 7.

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.]