ELFIT ARABIA Vs. CONCEPT HOTEL BARONS LTD.

JUDGEMENT

(1.) The petitioner, an entity incorporated in the United Arab Emirates, was purportedly approached by the respondents to finance a telecommunication project undertaken by Telesuprecon Nigeria Limited (TNL). Accordingly, the Memorandum of Understanding (MoU) which forms the basis of the petition under Sec. 11(6) of the Arbitration and Conciliation Act 1996[1] was executed on 1/6/2004. TNL was represented by the second respondent, who is also a director of the first respondent -a company incorporated in India. Pursuant to the terms of the MoU, the petitioners claim to have disbursed funds on various occasions. On 2/8/2006, a supplementary MoU was executed, setting out the terms of repayment and settlement of the petitioners dues. The respondents agreed to lien their property as comfort and issue cheques in support of their finances.

(2.) It has been stated that cheques were given to the petitioner from time to time during the course of meetings between the parties to negotiate repayment. On 7/5/2011, fifteen cheques which had been furnished to the petitioner for a consolidated amount of Rs.7.30 crores were presented for payment but allegedly dishonoured. Accordingly, on 2/6/2011, the petitioners issued a legal notice to the respondents to implement the MoU and make the necessary payment.

(3.) Eleven years thereafter, on 4/7/2022, the petitioners invoked arbitration in terms of clause 19 of the MoU. The respondent failed to reply to the notice invoking arbitration. Therefore, the petitioner issued a fresh notice dtd. 27/10/2022 calling upon the respondent to refer the dispute to arbitration. The petitioner did not receive a response to the second notice and instituted the present petition before this court for the appointment of an arbitrator.