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