Authority: High Court of Judicature at Madras
Order Date: 04-11-2026
Case Overview
- Petitioner: Mercedes‑Benz Financial Services India Private Limited (NBFC), represented by authorized signatory D. Pradeep Kumar.
- Respondents: 1) Kamco Chew Food Private Limited, Indore; 2) Kartar Singh, Indore (co‑borrower).
- Loan Agreement dated 17‑Aug‑2023 (Contract No. 10157356) and Deed of Hypothecation executed on the same date to finance purchase of a Mercedes‑Benz EQS 580 4MATIC (Engine No. 78060010032880, Chassis No. W1K2971446L000137, Reg. No. MP09ZS0097).
- Credit facility: Rs 1,55,00,000; repayment schedule: 48 monthly installments totalling Rs 1,87,91,687.
- Default: Respondents failed to meet repayment schedule; petitioner issued Loan Recall Notice on 29‑Dec‑2025 terminating agreement and demanding Rs 1,20,82,646.56 as of 22‑Dec‑2025.
- Arbitration: Petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996; notice under Section 21 served on 18‑May‑2026 nominating a sole arbitrator; respondents gave no response or appearance.
- Arbitration clause (Clause 76) designates sole arbitrator and venue at Chennai; court finds clause valid and dispute arbitrable.
Final Outcome
- Petition allowed; Hon’ble Mr. Justice R. Balasubramanian (former Madras High Court Judge) appointed as sole arbitrator.
- Arbitrator to file disclosure declaration under Section 12 before proceeding.
- Seat and venue fixed at Chennai; proceedings to follow Madras High Court Arbitration Centre Rules, 2017.
- Arbitral fee and administrative costs to be fixed per Centre Rules and payable as directed by the arbitrator.
- All claims, counter‑claims and defenses left open for determination; no order as to costs.
Topics: Arbitration, NBFC Loan Dispute