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Madras High Court

Flywheel Logistics Solutions Pvt Ltd vs Hinduja Leyland Finance Ltd on 15 July, 2020

Author: N.Sathish Kumar

Bench: N. Sathish Kumar

                                                                                        OP No.235 of 2020


                                                   O.P.235 of 2020 and
                                                    A.No.1004 of 2020

                     N.SATHISH KUMAR, J.

                              This matter is listed today under the caption for 'being mentioned' at

                     the instance of the learned counsel for the applicant.



                              2. The main contention of the learned counsel for the applicant is that

                     in this matter award has not been passed and only an interim Order has been

                     passed.     Whereas, the Order indicate as if the award has been passed.

                     Therefore, the same has to be clarified.



                              3. It is to be noted that on the same day when this matter has been

                     listed on 15.07.2020, this Court taking note of the fact that there are

                     infirmities in the proceedings and after verifying has passed one Order in

                     Item Nos. 69 and 80 to 95 another Order in item nos.70 to 79. While

                     drafting, it appears that the Order passed in item Nos.70 to 79 has been typed

                     in item Nos.69 and 80 to 95 and the Order passed in item Nos.69 and 80 to

                     95 has been typed in item Nos.70 to 79.


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                              3. In view the same the Order of this Court in O.P.No.235 of 2020 and

                     A.No.1004 of 2020, dated 15.07.2020 shall be read as follows :

                                    “When the matter is taken up today, the learned

                              counsel appearing for the first respondent company has

                              fairly submitted that as the Court had pointed out various

                              infirmities in the arbitral award passed by the arbitrator in

                              other matters and as the very same arbitrator had dealt many

                              number of cases of the first respondent company, they have

                              no objection for appointing fresh arbitrator in these matters

                              Mr.M.S.Sampath, has been suggested to enter upon the

                              reference in this matter.

                                    2. The learned counsel appearing for both sides have

                              no objection for going for appointment of a fresh arbitrator,

                              viz., Mr.M.S.Sampath.

                                    3. In view of the fact that as the arbitrator had dealt

                              with many number of cases of the first respondent, as agreed

                              by both sides, Mr.M.S.Sampath, Advocate, residing at

                              No.33, Baskaran Street, Kodambakkam, Chennai 600 024,

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                              Mobile No.9841159996, is appointed as an arbitrator to

                              enter upon the reference.      The learned arbitrator shall

                              disclose disclosure statement as mandated under law and

                              conduct the proceedings after giving opportunity to both

                              sides and complete the proceedings, within a period of six

                              months from the date of receipt of copy of this order. The

                              learned Arbitrator is at liberty to fix the remuneration and

                              the same shall be borne by the respondent and other

                              incidental expenses, shall be borne by the parties equally.

                              Same shall be included in the costs.

                                    4. In the Original Petition, this Court directed that the

                              cost to be borne only by the respondent.

                                    5. It is the contention of the respondent that the cost

                              to be borne by both the parties. Be that as it may.

                                    6. This Court after considering various infirmities and

                              manipulation of records on the part of the respondent, such

                              Order came to be passed. Therefore, the order as to cost

                              need not be recalled. At any event, if the applicant succeeds

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                              in the arbitration, the cost borne by them shall be included.

                                    7. Accordingly, the Original Petition is disposed of

                              and the connected application is closed.”



                              4.   The registry is directed to incorporate the above Order in

                     O.P.No.235 of 2020 and A.No.1004 of 2020, dated 15.07.2020 and issue

                     fresh order copy to the parties.

                                                                                        09.09.2020
                     vrc




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                                        OP No.235 of 2020


                              N.SATHISH KUMAR, J.

                                                    vrc




                                 O.P.235 of 2020 and
                                  A.No.1004 of 2020




                                          09.09.2020




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                                                                                         OP No.235 of 2020




                               IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED : 15.07.2020

                                                          CORAM

                              THE HONOURABLE MR. JUSTICE N. SATHISH KUMAR
                                           O.P.235 of 2020 and
                                            A.No.1004 of 2020


                     Flywheel Logistics Solutions Pvt Ltd.
                     Rep. by its Authorized representative
                     F-213/E-1, Old M.B.Road,
                     Lado Sarai, New Delhi - 110030                     ... Petitioner

                                                     Vs.

                     1. Hinduja Leyland Finance Ltd.,
                        Represented by its Authorized Representative,
                        having its registered office at
                        No.1, Sardar patel Road,
                       Guindy, Chennai 600 032.

                     2. Mr.S.Samuel (Sole Arbitrator),
                        Office at No.7/2, Kondichetty Street,
                        1st Floor, Room No.116, Parrys,
                        Chennai 600 001.

                     3. Meenakshi Syal,
                        d/o Shri Amar Singh,
                        No.117, First Floor, Uday Park,
                        New Delhi 110049                          ... Respondents


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                              Prayer:     Petition filed under Section 14(2) of the Arbitration and
                     Conciliation Act, 1996 to terminate the mandate of the arbitrator assumed
                     under notice of reference dated 14.11.2019 and substitute an independent
                     arbitrator to adjudicate upon the disputes between the petitioner and the
                     respondent         arising   out   of   the   Arbitration   Agreement    bearing
                     No.DHDLSG00527 dated 30.09.2017.


                                    For Petitioner       : Mr.Karthik Subramanian
                                    For Respondents : Mr.V.Balasubramani

                                                         ORDER

When the matter is taken up today, the learned counsel appearing for the first respondent company has fairly submitted that as the Court had pointed out various infirmities in the arbitral award passed by the arbitrator, they have no objection for appointing fresh arbitrator in this matter and has suggested a practising advocate Mr.Sampath to enter upon the reference.

2. The learned counsel for the petitioner has no objection for going for fresh arbitrator, viz., Mr.M.S.Sampath.

3. In view of the fact that despite the interim Order passed by this Court, award has been hurriedly passed, without any appropriate 7 of 4 http://www.judis.nic.in OP No.235 of 2020 proceedings and that itself clearly indicate that the award is a result of bias. In such view of the matter as the award has been passed during the pendency of the proceedings challenging the proceedings itself, the award is set aside. As agreed by both sides, Mr.M.S.Sampath, Advocate, residing at No.33, Baskaran Street, Kodambakkam, Chennai 600 024, Mobile No.9841159996, is appointed as an arbitrator to enter upon the reference. The learned arbitrator shall disclose disclosure statement as mandated under law and conduct the proceedings after giving opportunity to both sides and complete the proceedings, within a period of six months from the date of receipt of copy of this order. The learned Arbitrator is at liberty to fix the remuneration and other incidental expenses, which shall be borne by the respondent.

4. Accordingly, the Original Petition is disposed of and the connected application is closed.

15.07.2020 mst Index : Yes / No Internet : Yes Speaking Order/Non-Speaking Order.

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