Authority: High Court of Chhattisgarh at Bilaspur
Order Date: 06 July 2026
Case Overview
- Parties: Applicant – Ms Jai Jagdish Transport A Partnership Firm, Raipur, Chhattisgarh (partner/authorized representative: Vivek Agrawal). Non‑Applicant – Ms Sri Ratnagiri Transport A Partnership Firm, Visakhapatnam, Andhra Pradesh (partner: Samireddy Shyam).
- Background: The firms had a long‑standing business relationship involving vehicle rentals, tyre sales, and vehicle repairs. For FY 2020‑21 the non‑applicant acknowledged an outstanding liability of Rs 6,39,06,453 to the applicant. A Memorandum of Understanding (MoU) dated 09‑06‑2021 (executed 05‑07‑2021) recorded this liability and stipulated repayment within two years, i.e., by 05‑07‑2023, under Clause‑6.
- Default: The non‑applicant failed to make any repayment; all cheques issued under the MoU were dishonoured. Subsequent calculations indicated the total amount owed had risen to Rs 20,60,54,527 as of the filing date.
- Arbitration Notice: The applicant served a notice on 06‑10‑2025 invoking Clause‑10 of the MoU, which mandates resolution of any dispute by a sole arbitrator appointed by the second party. The notice was confirmed via online tracking, but the non‑applicant neither paid nor responded.
- Court Proceedings: The High Court, in an order dated 16‑12‑2025, directed issuance of notice to the respondent. When the service report remained pending, the Court on 04‑05‑2026 permitted service by publication in two leading newspapers circulating in Vishakhapatnam district. Despite this, the respondent did not appear before the Court.
- Arbitrator Selection: Counsel for both parties indicated willingness to accept any retired High Court judge as the sole arbitrator. They specifically suggested retired Justice Rajani Dubey.
Final Outcome
- The Court appointed Hon'ble Mrs. Justice Rajani Dubey, a retired judge of the High Court, as the sole arbitrator to resolve the dispute.
- The arbitration request filed by the applicant is hereby allowed.
- The Registry is directed to communicate the order to Justice Rajani Dubey at the proper address.
- The parties are to mutually agree on the arbitrator’s remuneration.
Topics: Arbitration, Transport Services Dispute