$~58 * IN THE HIGH COURT OF DELHI AT NEW DELHI + O.M.P.(I) (COMM.) 237/2025, I.A. 23616/2025, I.A. 23615/2025 CARS24 SERVICES PRIVATE LTD & ANR. .....Petitioners Through: Mr. Gauhar Mirza, Adv. versus SR AUTOS & ORS. .....Respondents Through: Mr. Saurabh Kushwaha, Adv. CORAM: HON'BLE MR. JUSTICE JASMEET SINGH O R D E R % 24.09.2025 1. This is a petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 seeking the following prayers: “a. Pass an ad-interim and interim order restraining the Respondents, their directors, servants, officers, agents, or anyone acting on their behalf, from selling, alienating, encumbering, or creating any third- party interest in the inventory detailed in Document 5, ("Said Inventory") pending the hearing and final disposal of this Petition and during the completion of arbitration proceedings; b. Pass an ad-interim and interim mandatory injunction directing the Respondents, their agents, employees, or anyone acting on their behalf, to forthwith deliver the physical possession of the Said Inventory to the Petitioners This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45 or their authorized representatives, such that Petitioners are able to transact on such vehicles, pending the disposal of the underlying dispute and arbitration proceedings; c. Pass an ad-interim and interim mandatory injunction directing the Respondents to ensure that there is no deviation or deterioration in the condition of the Said Inventory from the state as recorded in their respective inspection reports. The Respondents shall not tamper with, destruct, damage, or deteriorate the Said Inventory in any way while releasing it in the Petitioners' favor. Any such damage or deterioration shall be made good by the Respondents; d. Pass an ad-interim and interim order directing the Respondents to furnish complete and detailed particulars of all inventory (including vehicles, spare parts, and any other goods) currently in their possession or control at their respective franchise premises or elsewhere; e. Pass an ad-interim and interim order directing the Respondents to deposit the entire sale proceeds for any Said Inventory that has already been unauthorizedly sold, disposed of, or transferred by them, into this Hon'ble Court, pending the completion of arbitration proceedings and passing of the award; f. Award the cost of this Petition to the Petitioners; g. Pass any other and further order(s) as this Hon'ble Court may deem just, fair, and equitable in the facts and This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45 circumstances of the present case and in the interest of justice.” 2. Various orders have been passed by the Court from time to time including the appointment of Local Commissioners. 3. The brief facts are that the petitioners claim to be the leading players in the Indian Automobile industry, especially in the business of buying and selling used cars. In order to expand their operations and execute transactions, the petitioner No. 1 entered into a Franchise Agreement with the respondent No. 1 dated 14.09.2023 (‘SR Autos Agreement’). Subsequently, another Dealer Franchise Agreement dated 21.10.2024 was entered into between petitioner No. 1 and Respondent No. 2 (‘JMD Autos Agreement’), collectively referred to as ‘Dealer Franchise Agreements’. 4. On 16.12.2024, a Memorandum of Understanding (‘MoU’) was entered into between petitioner No. 2 and respondent No. 1. Another MoU was entered into between petitioner No. 2 and respondent No. 3 on 25.02.2025. 5. On the basis of the aforesaid agreements, the respondents were authorized to act on behalf of the petitioners for handling inventory, including possession and delivery of vehicles, as well as facilitating car sales under the brand and digital infrastructure of the petitioners. 6. Under the Franchise Agreements, the vehicles were to be held in trust by the respondents on behalf of the petitioners and would be delivered to end customers only upon confirmation and direction from the petitioners. 7. The petitioners allege that the respondents have violated various clauses of the Agreements and consequently filed the present petition. 8. The respondents were restrained from selling, alienating, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45 encumbering or creating third-party interest in respect of the cars detailed in Document 5 annexed with the petition vide order dated 03.07.2025. 9. Mr. Kushwaha, learned counsel for the respondents, states that the inventory is lying safe with the respondents and the respondents, in fact, have huge amounts due and payable by the petitioner, which is more than Rs. 75 lakhs. 10. Admittedly, the cars belong to the petitioners and it is agreed that all the cars detailed in Document 5 annexed with the petition shall be parked at Cars 24 Bhinder Farms, Makhan Majra Road, Chandigarh, New Grewal Farm 160101 within 10 days from today. 11. Additionally, both parties agree that an Arbitrator be appointed in terms of the arbitration clauses being Clause 21 of the Dealer Franchise Agreements and Clause 17 of the MOUs, which read as under: Clause 21 of the Dealer Franchise Agreements: “21. Governing Law, Jurisdiction and Dispute Resolution 3. In case the Dispute remains unsolved for more than ten (1 0) days after the first communication between the Parties, all disputes, differences and/or claims arising out of, or relating to, or in connection with this Agreement or the breach, termination or validity hereof shall be referred to Sole Arbitrator, to be appointed by the Cars24 in accordance with the Arbitration and Conciliation Act, 1996. The seat and venue of the arbitration shall be New Delhi, India. The award given by the Arbitrator shall be final and binding on both the Parties. The language of the arbitration proceedings and award shall be English. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45 Clause 17 of the MOUs: “17. Governing Law and Dispute Resolution: “Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be decided by a sole arbitrator to be appointed by Delhi International Arbitration Centre ("DIAC"), Delhi High Court Campus, New Delhi. The arbitration proceedings shall be conducted as per the rules of the DIAC, which rules are deemed to be incorporated by reference in this clause. The seat of the arbitration shall be New Delhi, India. The language of the arbitration shall be English. The award passed by the sole arbitrator shall be final and binding upon the Parties. Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be first resolved between the parties and if the discussion between parties fail, to be referred to and resolved by arbitration in New Delhi in accordance with the Arbitration and Conciliation Act, 1996 for the time being in force. The Arbitration shall be conducted in English and by a single Arbitrator mutually agreed by both Parties.” 12. I am satisfied that there are valid arbitration clauses and there are disputes between the parties that need to be resolved through the arbitral mechanism. 13. Accordingly, the petition is allowed with the following directions: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45 i) Mr. Justice Manmohan Singh (Former Judge, Delhi High Court) (Mob. No. 9717495001) is appointed as a Sole Arbitrator to adjudicate the disputes between the parties. ii) The arbitration will be held under the aegis and rules of the Delhi International Arbitration Centre, Delhi High Court, Sher Shah Road, New Delhi (hereinafter, referred to as the ‘DIAC’). iii) The remuneration of the learned Arbitrator shall be in terms of DIAC (Administrative Cost and Arbitrators’ Fees) Rules, 2018. iv) The learned Arbitrator is requested to furnish a declaration in terms of Section 12 of the Act prior to entering into the reference. v) It is made clear that all the rights and contentions of the parties, including as to the arbitrability of any of the claims, any other preliminary objection, as well as claims/counter-claims and merits of the dispute of either of the parties, are left open for adjudication by the learned Arbitrator. 14. Parties request that a mediator be appointed outside the Delhi High Court Mediation and Conciliation Centre. 15. With the consent of the parties, Mr. Sunil Dalal (Sr. Adv.) (Mob. No. 9810013399) is appointed as a mediator to try and settle the dispute between the parties. 16. The mediator shall be paid a total fee of Rs. 1.5 lakhs to be shared equally between the petitioners and the respondents. 17. The parties shall contact the mediator and fix a mutually convenient date. 18. The Arbitrator shall enter reference on 01.12.2025 in order to enable the parties to arrive at a mediated settlement, if any. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45 19. The petitioners shall not sell or deal with the cars till the mediation process is over and/or the order is modified by the Arbitrator. 20. The petition is disposed of in the aforesaid terms. JASMEET SINGH, J SEPTEMBER 24, 2025/DM This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 04/10/2025 at 15:35:45