MUDHIT MADANLAL GUPTA Vs. EMGEE ENCLAVE LLP

JUDGEMENT

(1.) This is an Application under Sec. 11 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking appointment of an arbitrator to refer the disputes and differences being raised by the Applicant which essentially relate to a Loan Agreement dated April 2, 2018, which admittedly contains an arbitration agreement.

(2.) The facts of the case present a unique situation inasmuch as none of the Respondents contest the existence of an arbitration agreement, but one of them asserts an element of constructive res judicata, and also invokes the Fifth Schedule of the Act, while others submit that the application for a reference to arbitration is premature.

(3.) Learned Counsel on behalf of Respondent No.2 submits that disputes and differences between the parties relate to very same Loan Agreement that had already been referred by a Learned Single Judge of this Court to arbitration, by an order dated March 15, 2022, which culminated in an Arbitral Award dated March 2, 2023. The Arbitral Award, essentially rejected the declaratory relief sought by Respondent No. 2 (the Claimant in that arbitration) that the guarantee issued by him stood extinguished.