SUKUMAR RAY Vs. MESSRS. INDO-INDUSTRIAL SERVICES

JUDGEMENT

(1.) The parties in the present case had entered into an agreement dated May 29, 2018 for financial accommodation. In terms of the said agreement, the petitioner lent and advanced a sum of INR 10,00,000 by way of cheque to the respondents. The agreement included an arbitration clause, Clause (viii), the same is reproduced below:

(2.) Later on, the parties entered into a subsequent agreement dated May 29, 2019. The said agreement extended the time for repayment of the loan amount of INR 10,00,000 till May 28, 2020. The quarterly payments of the accrued interest were also continued and extended till May 28, 2020.

(3.) The petitioner submitted that the respondents failed to make payment of the accrued interest along with the principle amount since October 20, 2020. On several occasions the petitioner demanded payment of the aforesaid loan amount along with accrued interest, but the same has not been paid. The petitioner had written letters to the respondents to mutually decide on the issue of appointment of an arbitrator as per the agreement, but the same has not been confirmed by the respondent. Therefore, the present application has been filed to seek appointment on an arbitrator as per Clause (viii) of the arbitration agreement dated May 29, 2018. Counsel for the petitioner has placed reliance on Chatterjee Petrochem Company and Another -v- Haldia Petrochemicals Limited and others reported in (2014) 14 SCC 574 to contend that the subsequent agreement entered into between the parties is valid and both the parties are bound by it.