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Bombay High Court

TATA CAPITAL LIMITEDversusNANDAMURI TRANSPORTERS

Decided
Disposal
DISPOSED OFF

Holding

The court held that service of the arbitration notice was complete and appointed Mr. Anurag Jain as the sole arbitrator.

Summary

The applicant, Tata Capital Ltd., sought to enforce an arbitration clause in a loan agreement with three respondents – a partnership firm, a co‑borrower and a guarantor – after alleged default. The court examined whether the notice invoking arbitration had been validly served, noting that service was attempted at the premises, via WhatsApp, email and by affixing the notice on the building after refusals to accept it. Relying on the arbitration clause which mandated fast‑track arbitration under Section 29B of the Arbitration and Conciliation Act, 1996, the court concluded that the service was complete. Consequently, it appointed Mr. Anurag Jain as the sole arbitrator and issued procedural directions for the arbitration proceedings. The application for arbitration was therefore disposed of, with the parties directed to cooperate with the appointed arbitrator.

Issues considered

  • Whether the notice invoking arbitration was validly served on all respondents
  • Whether the court can appoint a sole arbitrator under the arbitration clause and Section 29B of the Arbitration and Conciliation Act, 1996

Legislation cited

Subjects

  • Arbitration
  • Service of notice
  • Loan agreement
  • Fast‑track arbitration
  • Section 29B
  • Appointment of arbitrator
  • Commercial arbitration

Judgment

            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
               ORDINARY ORIGINAL CIVIL JURISDICTION

     COMMERCIAL ARBITRATION APPLICATION NO.140 OF 2026


TATA Capital Limited                    .. Applicant
      Vs.
Nandamuri Transporters & Ors.           .. Respondents


Ms. Akshita Jain a/w Mr. Harshit Kumar i/b I.V. Merchant & Co., for
Applicant.
None for Respondents.

                                 CORAM : ARUN R. PEDNEKER, J.
                                 DATE   : 25th JUNE 2026.

P.C. :


1.       Heard learned counsel appearing for the Applicant.

2.       Learned counsel appearing for the Applicant submits that this Court,

by order dated 8th June 2026, issued notice to the Respondents and granted

liberty to serve them by all permissible private modes.

3.       Learned counsel further submits that the representative of the

Applicant attempted to effect service upon Respondent No.1; however, the

notice could not be delivered as the premises were found closed. Respondent

No.1 is a partnership firm, while Respondent No. 2 is the co-borrower and

Respondent No. 3 is the guarantor under the loan agreement. It is further

submitted that Respondent No. 2 was present at the address; however, his
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wife refused to accept service on his behalf. Consequently, the representative

of the Applicant affixed the notice on a conspicuous part of the premises.

The notice was also served upon Respondent No.2 through WhatsApp on

mobile No. 9989777778 and by email at the email address mentioned in the

loan agreement.

4.     This Court issued Court notice on 8th June 2022 and the Registry

issued notice through speed post. The Respondent no.2 refused the same. It

is good service on Respondent no.2. Respondent no.3 was present at the

Address of the Respondent no.2 and attempt of service on Respondent no.3

was made, she has also refused to accept the same. Thus, service letter was

pasted on the premises. The representative of the Applicant also served

service letter dated 10th June 2022 issued to the Respondent no.1 on

WhatsApp and on email IDs i.e. [email protected] and

[email protected]. As such affidavit of service is filed.

This Court deems service to be complete.

5.     Learned counsel for the Applicant submits that they have extended a

loan to the Respondents, and that the loan agreement contains a dispute

resolution clause providing for arbitration under Clause 23 (at page 92). The

said clause is reproduced hereunder:



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        23. Arbitration

        23.1 All disputes, differences and/or claims, arising out of this
        Agreement or as to the construction, meaning or effect hereof or
        as to the rights and liabilities of the parties hereinunder shall be
        settled by arbitration to be held in Mumbai in accordance with the
        fast-track procedure contemplated under Section 29B of the
        Arbitration and Conciliation Act, 1996 or any statutory
        amendments thereof and shall be referred to sole Arbitrator to be
        appointed by the Lender. In the event of death, refusal, neglect,
        inability, or incapability of the person so appointed to act as an
        Arbitrator, the Lender may appoint a new arbitrator. The
        proceedings will be conducted in English language. The award of
        the Arbitrator shall be binding on all parties concerned.”

She submits that the notice invoking arbitration was issued on 24 th June

2024, and accordingly, the present application has been filed.

6.     Having considered the material, this Court would pass the following

order :-

(A)    Mr. Anurag Jain, learned Advocate of this Court is appointed as the

sole Arbitrator to adjudicate upon the disputes and differences between the

parties arising out of and in connection with the Agreement referred to

above. The contact details of the Arbitrator are as under :-

       Mobile No. :        98337 59856

       Email ID       :    [email protected]/
                           [email protected]

(B)    A copy of this order be communicated to the learned sole Arbitrator by

the Advocates for the Applicant within a period of 1 week from the date of

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uploading of this order.     The Applicant shall provide the contact and

communication particulars of the parties to the Arbitral Tribunal along with a

copy of this order.

(C)    Seat of the arbitration would be governed by the provisions of the

agreement executed between the parties.

(D)    Learned sole Arbitrator is requested to forward the statutory Statement

of Disclosure under Section 11(8) read with Section 12(1) of the 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 Respondent.

(E)    The parties shall appear before the learned sole Arbitrator on such date

and at such place as indicated by him, to obtain appropriate direction with

regard to conduct of the arbitration including fixing a schedule for pleadings,

examination of witnesses, if any, schedule of hearings etc. At such meeting,

the parties shall provide a valid and functional email address along with

mobile and landline numbers, if any, of the respective Advocates of the

parties to the Arbitral Tribunal. Communications to such email addresses

shall constitute valid service of correspondence in connection with the

arbitration.

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(F)    All arbitral costs and fees of the Arbitral Tribunal shall be borne by

the parties equally in the first instance and shall be subject to any final

Award that may be passed by the Tribunal in relation to costs.

7.     All contentions are expressly kept open to be agitated before the

Arbitral Tribunal appointed as above.

8.     With the above directions, Arbitration Application stands disposed of

accordingly.



                                                 (ARUN R. PEDNEKER, J.)




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