Bombay High Court
Aditya Birla Finance Limited vs Karvy Data Management Services Limited ... on 16 November, 2022
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
19-CARAP-57-2022.doc
Digitally
signed by
GANESH
GANESH SUBHASH
SUBHASH LOKHANDE
LOKHANDE Date:
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
2022.11.17
14:55:51
+0530 ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
COMMERCIAL ARBITRATION APPLICATION NO. 57 OF 2022
Aditya Birla Finance Limited .. Applicant
Vs.
Karvy Data Management Services Ltd & Ors. .. Respondents
Rohan Kadam with Amit Vyas with Amrita Dubey and Devdatta Uchil i/b.
Vertices Partners for the Applicant.
Kersi Dastoor for the Respondents.
CORAM:- B. P. COLABAWALLA,J.
DATE :- 16th NOVEMBER, 2022.
P. C.:
1. The above Arbitration Application is filed under Section 11 of the Arbitration and Conciliation Act, 1996 [for short the "Arbitration Act"] seeking the constitution of the Arbitral Tribunal to decide the disputes and differences between the Applicant and the Respondents arising out of the Term Loan Agreement dated 11th March, 2019. The Term Loan Agreement has been executed by the Applicant as the Lender and by Respondent No.1 as the Borrower and Respondent Nos. 2 and 3 Ganesh Lokhande page 1 of 4 19-CARAP-57-2022.doc are the Co-borrowers. The Term Loan Agreement also contains an Arbitration clause which reads thus:
"23.16 Arbitration:
All claims or disputes arising out of or in relation to this Agreement shall be settled by arbitration. The arbitration tribunal shall consist of a sole arbitrator to be appointed by ABFL. All parties to this Agreement hereby expressly consent to ABFL being the sole appointing authority. Any vacancy created in the arbitration tribunal, for any reason whatsoever, shall also be filled only by ABFL acting as the sole appointing authority. Only a former judge of any High Court or the Supreme Court will be eligible to act as an arbitrator under this clause. The place of arbitration shall be Mumbai. Parties agree that the Courts in Mumbai shall have the exclusive jurisdiction to exercise all powers under the Arbitration and Conciliation Act, 1996."
2. Mr. Dastoor, the learned advocate appearing on behalf of the Respondents has fairly stated that the Respondents are not disputing the existence and validity of the Arbitration Agreement between the parties and hence the Arbitral Tribunal can be constituted and the disputes between the parties can be referred to Arbitration.
3. In these circumstances, the following order is passed:
(a) By consent, Mr. Farhan Dubhash, an advocate of this Court, is hereby appointed to act as a Sole Arbitrator to decide upon the disputes and differences between the Applicant and the Respondents arising out of and/or in connection with and/or in relation to the Term Loan Ganesh Lokhande page 2 of 4 19-CARAP-57-2022.doc Agreement dated 11th March, 2019.
(b) A copy of this order will be communicated to the learned Sole Arbitrator by the advocates for the Applicant within a period of one week from today.
(c) The learned Sole Arbitrator is requested to forward his Statement of Disclosure under Section 11 (8) read with Section 12 (1) of the Arbitration Act to the advocates for the Applicant so as to enable them to file the same in the Registry of this Court. The Registry of this Court shall retain the said Statement on the file of this Application and a copy of the same shall be furnished by the advocates for the Applicant to the advocates for the Respondents.
(d) The parties shall appear before the learned Sole Arbitrator on such date and at such place as he nominates to obtain appropriate directions with regard to fixing a schedule for completing pleadings etc. The Arbitral Tribunal shall give all further directions with reference to the arbitration and also as to how it is to proceed.
(e) Contact and communication particulars shall be provided by all sides to the learned Sole Arbitrator within a period of one week from today. This information shall include a valid and functional email address as well as mobile numbers of the respective advocates.
Ganesh Lokhande page 3 of 4
19-CARAP-57-2022.doc
(f) The Sole Arbitrator shall charge his fees as per the 4th
Schedule of the Arbitration and Conciliation Act, 1996 read with the Bombay High Court (Fee payable to Arbitrators) Rules, 2018.
(g) All arbitral costs and fees of the Arbitrator will be borne by the parties equally, subject to the final Award that may be passed by the Tribunal.
(h) The parties immediately consent to a further extension of up to six months to complete the Arbitration should the learned Sole Arbitrator find it necessary.
(i) The parties have agreed that the venue and seat of the arbitration will be in Mumbai.
4. The Arbitration Application is accordingly disposed of. No order as to costs.
5. This order will be digitally signed by the Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.
( B. P. COLABAWALLA, J. )
Ganesh Lokhande page 4 of 4