Authority: High Court of Judicature at Madras
Order Date: 04.11.2026
Case Overview
- Parties: Petitioner – KONE Elevator India Private Limited, represented by C.V.S. Krishnakumar; Respondent – Shree Vardhman Infrahome Pvt Ltd, represented by its authorised signatory.
- Nature of Dispute: Commercial dispute arising from two Annual Maintenance Contracts (AMCs) for elevator maintenance at Shree Vardhman Flora, Sector‑90, Gurgaon.
- Contract Details:
- First AMC dated 27.01.2022 (Quotation Ref No. T‑0004087773) for six elevators, total value Rs 6,32,908.87.
- Second AMC dated 02.09.2022 (Quotation Ref No. 0041933040) for ten additional elevators, total value Rs 16,92,891.44.
- Payment terms required advance or payment within five days of invoice receipt; delayed payments attracted interest at 18% per annum.
- Default: Respondent made irregular part‑payments until 15.12.2022 and thereafter defaulted completely. Running account shows unpaid service invoices of Rs 13,54,808.35 and undeposited TDS credit of Rs 38,641, aggregating to a claim of Rs 13,93,449.35.
- Communications:
- 26.04.2023 – Respondent emailed alleging non‑functionality of an elevator at Tower B5 and threatened termination; petitioner refuted, citing pending high‑value material payments.
- 29.11.2023 – Petitioner issued a Demand Notice.
- 08.10.2024 – Petitioner issued a Legal Notice demanding payment.
- 18.07.2025 – Petitioner served a Notice of Arbitration under Section 21 of the Arbitration and Conciliation Act, proposing appointment of a sole arbitrator.
- Arbitration Clause (Clause 11, Appendix 2 of both AMCs): Disputes to be referred to arbitration by a sole arbitrator appointed by KONE; contract governed by Indian law; exclusive jurisdiction of Chennai courts; arbitration award final and binding.
- Petition: Filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of a sole arbitrator.
- Respondent's Position: No appearance, no counter‑affidavit, and no response to the petition.
- Court Findings:
- The contracts and arbitration clause are valid and undisputed.
- The High Court has territorial jurisdiction under Section 11 of the Act.
- The petitioner's invocation of arbitration under Section 21 is proper.
Final Outcome
- The petition is allowed.
- Sole Arbitrator Appointed: Mr. Niranjan Rajagopalan, Advocate, Madras High Court (address: III‑A, High Court Chambers, Madras High Court, Chennai‑600 104).
- The arbitrator must file a disclosure statement under Section 12(1) and the Sixth Schedule of the Act before proceeding.
- Seat & Venue: Chennai, as stipulated in the contracts.
- Arbitration Procedure: To be conducted under the Madras High Court Arbitration Centre and in accordance with the Madras High Court Arbitration Proceedings Rules, 2017.
- Fees & Administrative Expenses: To be fixed per the Madras High Court Arbitration Centre (Administrative Cost and Arbitrators' Fees) Rules, 2017, and shared equally between the parties.
- All contentions, claims, counter‑claims, and defenses on merits are left open for determination by the sole arbitrator.
- No order as to costs.
Topics: Arbitration, Commercial Dispute