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* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Decision: 29.10.2024
+ ARB.P. 1214/2024
MONEYWISE FINANCIAL SERVICES PVT LTD. ....Petitioner
Through: Ms. Mehvish Khan and Mr. Aman
Choudhary, Advs.
versus
VIREN TELECOM PRIVATE LIMITED
THROUGH ITS DIRECTORS AND OTHERS .....Respondents
Through: Mr. Subhrodeep Saha and Mr. A.
Chaudhary, Advs.
CORAM:
HON'BLE MR. JUSTICE SACHIN DATTA
SACHIN DATTA, J. (ORAL.)
1. The present petition has been filed under section 11 of the Arbitration
and Conciliation Act, 1996 (hereinafter referred as ‘A&C Act’) seeking
appointment of a Sole Arbitrator to adjudicate the disputes between the
parties.
2. The disputes between the parties have arisen in the context of a
Master Loan Agreement dated 31.03.2018 executed between the petitioner
and respondents, in terms of which respondent no.1 is the borrower, whereas
respondent no(s) 2 to 4 are guarantors.
3. As per the said agreement, the petitioner disbursed a loan of Rs.
25,00,000/- (Rupees Twenty-Five Lakhs Only) to the respondents. The loan
amount was payable into 36 equal instalments of Rs.91,640/- (rupees
Signature Not Verified
ARB.P. 1214/2024 Page 1 of 4
Digitally Signed By:ROHIT
KUMAR PATEL
Signing Date:10.11.2024
03:03:41
Ninety-One Thousand Six Hundred and forty only).
4. Dispute/s have arisen between the parties on account of alleged
default on the part of the respondents in paying the requisite instalments.
The respondents failed to make the payment despite being granted
opportunities to clear the outstanding dues.
5. The arbitration clause in the Agreement between the parties, is in the
following terms : -
“10.1 Arbitration: Any disputes, differences, controversies and
questions directly or indirectly arising at any time hereafter between
the Parties or their respective representatives or assigns, arising out
of or in connection with this Agreement (or the subject matter of this
Agreement), including, without limitation, any question regarding it
existence, validity, interpretation, construction, performance,
enforcement, rights and liabilities of the Parties, or termination
(“Dispute”), shall be referred to a sole arbitrator duly appointed by
the Lender. The language of the arbitration shall be English. The seat
of the arbitration shall be at New Delhi and the language of
proceedings shall be English. The award rendered shall be in writing
and shall get out the reasons for the arbitrator’s decision. The costs
and expenses of the arbitration shall be borne equally by each party
with each party paying for its own fees and costs including attorney
fees, except as may be determined by the arbitration tribunal. Any
award by the arbitration tribunal shall be final and binding.”
6. Disputes having arisen between the parties, a loan recall/termination
notice dated 10.06.2021 was issued by the petitioner followed by a demand
notice cum notice for invoking arbitration on 03.07.2024. However, the
respondents failed to respond to the same.
7. 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.
8. In the present proceedings, notice was issued by the Court on
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ARB.P. 1214/2024 Page 2 of 4
Digitally Signed By:ROHIT
KUMAR PATEL
Signing Date:10.11.2024
03:03:41
08.08.2024 with a liberty to the respondents to file reply, to oppose the
appointment of arbitrator within three weeks from the date of service.
Learned counsel on behalf of the respondents does not dispute existence of
the arbitration agreement, and accedes to an independent Sole Arbitrator
being appointed by this Court to adjudicate the disputes between the parties.
9. Since the existence of the arbitration clause is evident from a perusal
of the Master Loan Agreement, there is no impediment in appointing an
independent Sole Arbitrator for adjudicating the disputes between the parties
as prayed for, 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 and Interplay between Arbitration Agreements under
the Arbitration & Conciliation Act, 1996 & the Indian Stamp Act, 1899, In
re, 2023 SCC OnLine SC 1666.
10. Accordingly, Ms. Anisha Upadhyay, Advocate (Mob.
No.:+91.8800625111) is appointed as the Sole Arbitrator to adjudicate the
disputes between the parties.
11. The respondent shall be at liberty to raise preliminary objections as
regards arbitrability/jurisdiction, if any, which shall be decided by the
arbitrator, in accordance with law.
12. 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.
13. The learned Sole Arbitrator shall be entitled to fee in accordance with
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ARB.P. 1214/2024 Page 3 of 4
Digitally Signed By:ROHIT
KUMAR PATEL
Signing Date:10.11.2024
03:03:41
th
the IV Schedule of the A&C Act; or as may otherwise be agreed to
between the parties and the learned Sole Arbitrator.
14. Parties shall share the arbitrator’s fee and arbitral cost, equally.
15. All rights and contentions of the parties in relation to the
claims/counter claims are kept open, to be decided by the learned Sole
Arbitrator on their merits, in accordance with law.
16. Needless to say, nothing in this order shall be construed as an
expression of opinion of this court on the merits of the case.
17. The present petition stands disposed of in the above terms.
SACHIN DATTA, J
OCTOBER 29, 2024/sl
Signature Not Verified
ARB.P. 1214/2024 Page 4 of 4
Digitally Signed By:ROHIT
KUMAR PATEL
Signing Date:10.11.2024
03:03:41