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Madras High Court

Flywheel Loistics Solutions Pvt Ltd vs Hinduja Leyland Finance Ltd on 29 July, 2020

Author: N.Sathish Kumar

Bench: N. Sathish Kumar

                                                                      O.P.No.213 of 2020 and A.No.955 of 2020

                                                O.P.213 of 2020 and
                                                  A.No.955 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

                 and the same mistake has crept in the connected batch listed on 29.07.2020.

                          3. In view the same the Order of this Court in O.P.No.213 of 2020 and


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                                                                    O.P.No.213 of 2020 and A.No.955 of 2020

                 A.No.955 of 2020, dated 29.07.2020 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, Mobile

                          No.9841159996, is appointed as an arbitrator to enter upon the

                          reference.   The learned arbitrator shall disclose disclosure

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                                                                     O.P.No.213 of 2020 and A.No.955 of 2020

                          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 the Order as to cost

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

                          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.”



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                                                                   O.P.No.213 of 2020 and A.No.955 of 2020




                          4. The registry is directed to incorporate the above Order in O.P.No.213

                 of 2020 and A.No.955 of 2020, dated 29.07.2020 and issue fresh order copy to

                 the parties.

                                                                                     09.09.2020
                 vrc




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                          O.P.No.213 of 2020 and A.No.955 of 2020

                               N.SATHISH KUMAR, J.

                                                            vrc




                                     O.P.213 of 2020 and
                                       A.No.955 of 2020




                                                  09.09.2020




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                                                                 O.P.No.213 of 2020 and A.No.955 of 2020

                             IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                              DATED : 29.07.2020

                                                      CORAM

                           THE HONOURABLE MR. JUSTICE N. SATHISH KUMAR
                                        O.P.213 of 2020 and
                                         A.No.955 of 2020


                 Flywheel Loistics 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



                          Prayer:   Petition filed under Section 14(2) of the Arbitration and


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                                                                     O.P.No.213 of 2020 and A.No.955 of 2020

                 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.DHDLSG00533 dated 30.09.2017.


                              For Petitioner      : Mr.Karthik Subramanian
                                                      for Mr.Abishek Jebaraj
                              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 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 http://www.judis.nic.in 7/9 O.P.No.213 of 2020 and A.No.955 of 2020 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.

29.07.2020 rpp Index : Yes / No Internet : Yes Speaking Order/Non-Speaking Order.

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