M/S CARS 24 FINANCIAL SERVICES PRIVATE LIMITED v. SURBHI CHAWLA PROPRIETOR OF M/S SURBHI MOTORS

1. The present petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as ‘A&C Act’) seeks appointment of a sole arbitrator to adjudicate the disputes between the parties.

SACHIN DATTA, J. (ORAL)

2. The disputes between the parties have arisen in the context of a Credit Facility Agreement dated 17.01.2020 entered into between the petitioner and the respondents, in terms of which the respondent no.1 is the borrower, whereas the respondent no.2 is the co-borrower.

3. Disputes have arisen between the parties on account of alleged default on the part of the respondents in paying the tranches/instalments under the aforesaid agreement.

4. The Agreement between the parties contains an Arbitration Clause as under- “15.[2] Arbitration: Any dispute under this Agreement shall be settled by binding arbitration conducted in English with the seat of arbitration in New Delhi, before a single arbitrator appointed by Lender at its sole discretion, as per the Arbitration and Conciliation Act, 1996.”

5. Disputes having arisen between the parties, a Finance/Credit Facility Recall Notice-cum-Proposal for Appointment of Arbitrator dated 04.09.2023 was issued by the petitioner followed by a notice invoking arbitration dated 09.07.2024. However, the respondents failed to respond to the same.

6. In the above circumstances, the petitioner has approached this Court, through the present petition, seeking the appointment of a sole arbitrator to adjudicate the dispute.

7. In the present proceedings, notice was issued by the Court on 29.08.2024. The petitioner has taken the requisite steps to serve the respondents at its known address/es. It has been brought out that the respondents have been duly served through speed post. The respondents are stated to have been also served via email at survish0gmail.com and via whatsapp at +917696720300. The relevant tracking reports and receipts have been placed on record along with the affidavit of service dated 11.11.2024, filed on behalf of the petitioner.

8. In the circumstances, the present petition is taken up for hearing and disposal, despite no appearance on behalf of the respondent.

9. Since the existence of the arbitration clause is evident from a perusal of the Agreement, there is no impediment in appointing an independent sole arbitrator for adjudicating the disputes between the parties as prayed for and as mandated in terms of the judgments of the Supreme Court in Perkins Eastman Architects DPC v. HSCC (India) Ltd., (2020) 20 SCC 760, TRF Limited v. Energo Engineering Projects Ltd. (2017) 8 SCC 377, Bharat Broadband Network Limited v. United Telecoms Limited 2019 SCC OnLine SC 547, SBI General Insurance Co. Ltd. v. Krish Spinning, 2024 INSC 532 and Interplay between Arbitration Agreements under the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In re,

10. Accordingly, Ms. Swati Surbhi, Advocate (Mob.: 9899999785) is appointed as the Sole Arbitrator to adjudicate the disputes between the parties.

11. The learned Sole Arbitrator may proceed with the arbitration proceedings subject to furnishing to the parties requisite disclosures as required under Section 12 of the A&C Act.

12. The learned Sole Arbitrator shall be entitled to fee in accordance with IVth

13. All rights and contentions of the parties in relation to the claims/counter-claims are kept open, to be decided by the learned Arbitrator on their merits, in accordance with law. Schedule to the A&C Act; or as may otherwise be agreed to between the parties and the learned Sole Arbitrator.

14. Needless to say, nothing in this order shall be construed as an expression of this court on the merits of the case.