Arb O.P(COM.DIV.) No. 338 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22-09-2025 CORAM THE HONOURABLE MR JUSTICE N. ANAND VENKATESH Arb O.P(COM.DIV.) No. 338 of 2025 1. M/s.Shrinithi Capital Private Ltd Represented by its Chief Manager,Mr.R.SELVAM, at 7th Floor,2A,Mookambika complex, No.4,Lady Desika Road,Mylapore, Chennai-600004. Appellant(s) Vs 1. GOPAL L.N,S/O.Nadarajan No.97/1,Supurayavalasu,46 Pudur, Magali Amman Temple,Erode-638002. 2.Manikandan,S/o.Ramasamy No.19/2, Knk Road, Union Bank Opp, Erode-638003. Respondent(s) PRAYER To Appoint a Sole Arbitrator to adjudicate between the Petitioner and the Respondents arising out of the Loan-cum-Hypothecation Agreement dated 21.10.2022 For Appellant(s): K.Sendurpandi For Dr.M.Devendran for R1 https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 338 of 2025 Respondent(s): V.Kadhirvelu, K.Subharitha, For 1st Respondent Vakalat D.No.35002/25, 9443322271 ORDER This petition has been filed to appoint a Sole Arbitrator to adjudicate the dispute between the Petitioner and the Respondents arising out of the Loan-cum-Hypothecation Agreement dated 12.07.2021. 2. Heard the learned counsel appearing on either side and carefully perused the materials available on record. 3. The 1st respondent is said to have approached the petitioner for financial assistance to purchase the vehicle. The loan was sought in the name of the 1st respondent and the 2nd respondent stood as the guarantor. The parties entered into a loan cum hypothecation agreement dated 22.10.2022, which provided for resolving the dispute through Arbitration under Article 28, which is extracted hereunder :- ARBITRATION: https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 338 of 2025 The Parties agree that, all disputes, differences and/or claims arising out of this Agreement whether during its subsistence or there after shall be settled by arbitration in accordance with the provisions and the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the Sole Arbitrator having office at Chennal Tamil Nadu nominated by the Company. The Borrower and Guarantor gives full consent for the Arbitration to be conducted at Chennal Tamilnadu by the Sole Arbitrator nominated by the company. It is also agreed between both the Parties that the fee of the Arbitrator shall be equally shared by them. The award given by such Arbitrator shall be final and binding on all parties to this Agreement. In the event of an appointed arbitrator dying or being unable or unwilling to act as arbitrator for any reason, the Company, on such death of the arbitrator or his inability or unwillingness to areas arbitrator, shall appoint another person to act as arbitrator. Such person shall be entitled to proceed with the reference from the stage left by his predecessor. The venue of arbitration proceedings shall be at Chennai or such other place/location/city which the Company at its discretion may decide from time to time. 4. The further case of the petitioner is that the vehicle was re-possessed and it was also sold and after adjusting the sale https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 338 of 2025 proceeds, there is an outstanding of Rs.2,50,260/- payable to the petitioner along with interest. The petitioner issued the trigger notice dated 18.09.2024 under Section 21 of the Act, for appointment of an arbitrator. Since there was no response, the present petition has been filed before this Court. 5. The 1st petitioner has filed a counter affidavit and the 1st petitioner has raised a serious dispute with regard to the claim made by the petitioner. 6. In the considered view of this Court, while deciding a petition under Section 11 of the Act, the Court must only see that if there is a valid agreement in line with Section 7 of the Act and agreement contains an arbitration clause. These requirements are satisfied. Beyond that, this Court cannot go into the merits of the case and it can only be considered by the arbitrator. It is left open to the respondents to raise all the grounds before the learned Arbitrator and the same will be considered on its own merits and in accordance with law. https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 338 of 2025 7. In view of the above, Mr.P.Saravanan, Advocate at SARO Associates, Old No.23, New No.4, 10th Cross street, Indira Nagar, Adayar, Chennai 600 020 Mobile No.9444433819, is appointed as the sole Arbitrator and the Arbitrator is requested to enter upon reference qua the Employment Agreement dated 01.02.2019, adjudicate the arbitral dispute that were arising between the parties by holding the sittings in any venue in Chennai to the convenience of all concerned and render an award. Fees of the sole Arbitrator shall be in accordance with the Madras High Court Arbitration Centre (MHCAC)(Administrative Cost and Arbitrator's Fees) Rules 2017. 7.This Arb. OP is disposed of in the above terms. There shall be no order as to costs. 22-09-2025 rka Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 338 of 2025 To 1.GOPAL L.N,S/O.Nadarajan No.97/1,Supurayavalasu,46 Pudur, Magali Amman Temple,Erode-638002. 2.MANIKANDAN,S/o.RAMASAM Y No.19/2, Knk Road, Union Bank Opp, Erode-638003. https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 338 of 2025 N.ANAND VENKATESH J. rka Arb O.P(COM.DIV.) No. 338 of 2025 22-09-2025 https://www.mhc.tn.gov.in/judis