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2025 DAILYLAW 71518 (MAD)

M/S.S.G.Ramesh Cumar (HUF) v. Mr.J.Rangarajan

Arb O.P(COM.DIV.)/403/2025 · 2025-10-13

N Anand Venkatesh

Transfer Petitionbody2025

Judgment text

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Arb O.P(COM.DIV.) No. 403 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 13-10-2025 CORAM THE HONOURABLE MR JUSTICE N. ANAND VENKATESH Arb O.P(COM.DIV.) No. 403 of 2025 1. M/S.S.G.Ramesh Cumar (HUF) Represented by its Karta S.G.Ramesh Cumar No.62,Old No.50,Thiruvalluvarpet, Mandaveli,Chennai-600028. Applicant(s) Vs 1. Mr.J.Rangarajan, S/o.Mr.S.Jagannathan, No.6/3,Soundararajan Street, T.Nagar,Chennai-600017 Mobile No.9840066638. Also at Mr.J.Rangarajan Mr.S.Jagannathan, Ananti Flats,Flat No.G-2,Ground FLoor, Door No.13/21,Appu 2nd Street, Mylapore,Chennai-600004. MObile No.9840066638 also at Mr.J.Rangarajan Director, M/s.Air Cycles Systems and Projects Private LImited, No.15/8 Aalayam,Ground Floor, 1st Cross Street,Mylapore, Chennai-600004. Mobile No.9840066638.Chennai 2.Mrs.Padmapriya Rangarajan, W/o.Mr.S.Rangarajan, No.6/3,soundararajan Street, https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 403 of 2025 T.nagar,chennai-600017 Mobile No.9840966638. Also At Mrs.padmapriya Rangarajan W/o,mr.j.rangarajan, Ananti Flats,flat No.g-2,ground Floor, Door No.13/21,appu 2nd Street, Mylapore,chennai-600004. Mobile No.9840966638 Also At Mrs.padmapriya Rangarajan Director, M/s.air Cycles Systems And Projects Private Limited, No.15/8 Aalayam,ground Floor, 1st Cross Street,mylapore, Chennai-600004. Mobile No.9840966638. Respondent(s) Arb O.P(COM.DIV.) No. 403 of 2025 PRAYER a. To appoint a sole arbitration to adjudicate the dispute arising between the petitioner and Respondents in terms of Arbitration Agreements dated 29.03.2019 and 19.02.2020 b. direct the Respondents to pay the costs of this petition. Arb O.P(COM.DIV.) No. 403 of 2025 For Applicant(s): Mr.S.K.Srinivasan for Mr.A.L.Ramamurthy For Respondent(s): Mr. A. Aravind Athithan ORDER This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 [hereinafter referred to as the “Act”] for appointment of a sole arbitrator. https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 403 of 2025 2. When the matter came up for hearing on 18.07.2025, this Court passed the following order:- This petition has been filed under Section 11 of the Arbitration and Conciliation Act seeking for appointment of an Arbitrator by this Court. 2.The petitioner has lent money to the respondents under a Demand Promissory Note dated 29.03.2019. There seems to be a dispute between the petitioner and the respondents arising out of the loan transaction. The first respondent has executed a separate agreement for arbitration in favour of the petitioner on 29.03.2019. Similarly, the second respondent has entered into a separate arbitration agreement with the petitioner on 19.02.2020. 3.The petitioner has invoked arbitration in accordance with the arbitration clause by issuing notice to the respondents on 23.02.2024. The institution also nominated an Arbitrator, based on the request made by the petitioner. However, before the Arbitrator appointed by the institution, the respondents have objected to the appointment of an Arbitrator by the institution on the ground that the petitioner has appointed the Arbitrator unilaterally. In view of the said objection raised by the respondents, the Arbitrator appointed by the institution recused himself from proceeding further with the arbitration through its order dated 28.05.2025. In https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 403 of 2025 view of the same, the petitioner has been constrained to file this petition under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for the appointment of an Arbitrator by this Court. 4.Since there exists an arbitration agreement between the parties and since the petitioner has complied with the requirements of Section 21 of the Arbitration and Conciliation Act and since the Arbitrator appointed by the institution has recused himself from proceeding further with the arbitration, in view of the fact that he was appointed unilaterally by the petitioner and since there is no consensus between the parties with regard to the name of the Arbitrator, this Court is issuing notice to the respondents returnable by 14.08.2025. Private notice is also permitted. 3. Heard Mr.S.K.Srinivasan, learned counsel for the applicant and Mr.A.Aravind Athithan, learned counsel for respondents. 4. This Court on considering the submissions made on either side and the materials available on record finds that there is a valid agreement between the parties under Section 7 of the Act and there is an existence of an arbitration clause. Hence, the dispute has to be referred to the sole arbitrator and it is left open both sides to make https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 403 of 2025 all their claims and defence, which will be considered on its own merits and in accordance with law. 5. In view of the above, Ms.Abhitha Banu, Advocate, at No.356, Sree Ram Aravind Apartment, 4th Floor, Llyods Road, Gopalapuram, Chennai – 600 086, Mobile NO.99402 66535, is appointed as sole Arbitrator and the Arbitrator is requested to 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. 6. This Arb. OP is disposed of in the above terms. There shall be no order as to costs. 13-10-2025 rka Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 403 of 2025 To 1.Mr.J.Rangarajan, S/o.Mr.S.Jagannathan, No.6/3,Soundararajan Street, T.Nagar,Chennai-600017 Mobile No.9840066638. Also at Mr.S.Jagannathan, Ananti Flats,Flat No.G-2,Ground FLoor, Door No.13/21,Appu 2nd Street, Mylapore,Chennai-600004. MObile No.9840066638 also at Mr.J.Rangarajan Director, M/s.Air Cycles Systems and Projects Private LImited, No.15/8 Aalayam,Ground Floor, 1st Cross Street,Mylapore, Chennai-600004. Mobile No.9840066638.Chennai 2.Mrs.Padmapriya Rangarajan, W/o.mr.s.rangarajan, No.6/3,soundararajan Street, T.nagar,chennai-600017 Mobile No.9840966638. Also At Mrs.padmapriya Rangarajan W/o,mr.j.rangarajan, Ananti Flats,flat No.g-2,ground Floor, Door No.13/21,appu 2nd Street, Mylapore,chennai-600004. Mobile No.9840966638 Also At Mrs.padmapriya Rangarajan Director, M/s.air Cycles Systems And Projects Private Limited, No.15/8 Aalayam,ground Floor, 1st Cross Street,mylapore, Chennai-600004. Mobile No.9840966638. https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis Arb O.P(COM.DIV.) No. 403 of 2025 N.ANAND VENKATESH J. rka Arb O.P(COM.DIV.) No. 403 of 2025 13-10-2025 https://www.mhc.tn.gov.in/judis https://www.mhc.tn.gov.in/judis