TATA CAPITAL LIMITED v. M/S NELKO BATTERY AND ELECTRONICS & ANR.

1. The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking the 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 context of a ‘Loancum-Guarantee’ (Channel Finance Facility) agreement dated 08.02.2023 (hereinafter ‘the agreement’).

3. Under the said agreement, the respondent no.1 (borrower) has availed a channel finance facility for a sum of Rs. 27,00,000/- (Rupees twenty seven lakhs only), the respondent no.2 is the personal guarantor to respondent no.1.

4. Disputes between the parties have arisen on account of alleged nonpayment by the respondent no.1 of its monetary dues/instalments under the Agreement.

5. The arbitration clause contained in the said agreement is as follows:-

6. Disputes having arisen between the parties, a loan-recall-notice dated 05.03.2024 was issued by the petitioner, calling upon the respondent no.1 to clear its outstanding dues under the loan agreement and to invoke arbitration in the event of failure of the respondent no.1 to clear the said outstanding dues. However, the said notice was not responded to by the respondent no.1.

7. In the above circumstances, the present petition has been filed seeking the appointment of a Sole Arbitrator to adjudicate the disputes between the parties.

8. In the present proceedings, notice was issued by the Court on 17.05.2024. Learned counsel, who enters appearance for the respondent, accedes to the appointment of a Sole Arbitrator in the present case.

9. Since the respondent has not disputed the existence of the arbitration clause contained in the abovesaid agreement, there is no impediment to appointing an independent sole arbitrator to adjudicate the disputes between the parties as contemplated in terms of Perkins Eastman Architects DPC v. HSCC (INDIA) Limited, (2020) 20 SCC 760, TRF Limited v. Energo Engineering Projects Limited, (2017) 8 SCC 377 and Bharat Broadband Network Limited v. United Telecoms Limited, (2019) 5 SCC 755, Interplay between Arbitration Agreements under the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In re, 2023 SCC OnLine SC 1666 and SBI General Insurance Co. Ltd. v. Krish Spinning 2024 SCC OnLine SC

1754.

10. Accordingly, Mr. Ashish Dixit, Advocate (Mob.: 9999900412) 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 disclosure as required under Section 12 of the A&C Act.

12. It is agreed by the parties that the arbitration shall be conducted under the aegis and rules of Delhi International Arbitration Centre (DIAC), and the payment of arbitrator's fees and arbitration cost, shall be governed by the said rules. It is directed accordingly.