MERCEDES BENZ FINANCIAL SERVICES INDIA PRIVATE LIM vs JIGISH ROHITBHAI PATEL

Arb OP (Com.Div) No.511 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 30.10.2026
DELIVERED ON : 04.11.2026
CORAM :
THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI,
CHIEF JUSTICE
Arb O.P(COM.DIV.) No. 511 of 2026
HCMA011665832026
CNR:{ }

Mercedes Benz Financial Services India
Private Limited, 5th Floor, Plot 8,
Baashyam Willow, Square 9 and 10,
First Street, Thiru Vi Ka Industrial Estate,
Guindy, Chennai-600032.
Rep. by its Authorised Signatory.
Petitioner(s)
Vs
1. Jigish Rohitbhai Patel
Jigish Pate Desai Khadaki,
Khokhara Gam, Ahmedabad,
Gujaraj-380008.
2. Jigish Rohitbhai Patel HUF,
Rep by its Karta, Jigish Pate Desai Khadaki,
Khokhara Gam, Ahmedabad,
Gujarat - 380008.
Respondent(s)
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Arb OP (Com.Div) No.511 of 2026
PRAYER: Petition filed under Section 11(6) of the Arbitration and
Conciliation Act, 1996 to appoint an a Sole Arbitrator to adjudicate the
dispute between the petitioner and the respondents as per the Loan
Agreement dated 18.06.2021 bearing Contract No.10144457, direct
the respondents to pay the cost of this petition.
For Appellant(s): Mr.D.Pradeep Kumar
For Respondent(s):No Appearance
ORDER
This petition is filed under Section 11(6) of the Arbitration and
Conciliation Act, 1996 seeking appointment of a Sole Arbitrator to
settle monetary disputes arising out of a vehicle loan agreement.
2.1. The facts in brief are that the petitioner granted financial
assistance of Rs.38,10,800/- to Respondent No.1 (Borrower) and
Respondent No.2 (Co-Borrower) under Loan Agreement
No.10144457 dated 18.06.2021. The loan was sanctioned to
purchase a Mercedes-Benz A 200 Limousine vehicle (Registration
No.GJ18BN7566, Engine No.28291430371035, Chassis No.
W1K1771876L000280).
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Arb OP (Com.Div) No.511 of 2026
2.2. The respondents executed a Deed of Hypothecation on
18.06.2021, creating an exclusive charge over the vehicle in favour
of the petitioner to secure repayment. The loan was to be repaid in
60 monthly installments totaling Rs.49,84,222/- between
18.07.2021 and 18.06.2026. The respondents paid initial
installments, but defaulted repeatedly from 2022 onwards. Due to
persistent default, the petitioner issued a Loan Recall Notice dated
16.02.2026, terminating the agreement and calling upon the
respondents to pay the outstanding balance of Rs.18,28,886.17 as
of 10.02.2026.
2.3. The respondents failed to clear the dues. Consequently,
the petitioner issued a notice dated 18.05.2026 under Section 21 of
the Act, invoking the arbitration clause and proposing an arbitrator.
Postal records confirm that the notices were returned as "Refused"
by the respondents.
3. Despite complete service of notice in this petition and
printing the names of the respondents in the cause-list, there is no
representation on behalf of the respondents. Since the respondents
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Arb OP (Com.Div) No.511 of 2026
chose not to appear or contest the claims, they are set ex-parte,
and the assertions in the petition remain uncontroverted.
4. Clause 66 of the Loan Agreement dated 18.06.2021
contains the arbitration agreement between the parties. It explicitly
provides:
"All claims and disputes arising under or relating to
this Loan Agreement are to be settled by binding
arbitration in the state of Tamil Nadu, specifically
Chennai or another location as desired by the
lender... Any such arbitration shall be conducted by
single arbitrator appointed by the Lender."
5. The petitioner has fulfilled all pre-conditions:
(a) The existence of an arbitration agreement is
established via the signed contract.
(b) An arbitrable commercial dispute exists regarding
unpaid dues amounting to Rs.18,03,072.72 as of
17.04.2026.
(c) Notice under Section 21 of the Act was issued
and served.
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Arb OP (Com.Div) No.511 of 2026
6. Under Section 11(6) of the Act, when a party fails to act as
required under the appointment procedure, this Court holds
jurisdiction to appoint an independent Sole Arbitrator.
7. Accordingly, the Arbitration Original Petition is allowed with
the following directions:
(a) Mr.Naveen Kumar Murthy, Advocate (having office
at S2, 2nd Floor, Singapore Plaza, No.164, New
No.337, Linghi Chetty Street, Chennai - 600 001) is
appointed as the Sole Arbitrator to adjudicate the
disputes between the petitioner and the respondents
under Loan Agreement No.10144457 dated
18.06.2021.
(b) The learned Arbitrator is requested to file a
disclosure declaration in accordance with Section
12(1) of the Arbitration and Conciliation Act, 1996,
prior to entering upon the reference.
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Arb OP (Com.Div) No.511 of 2026
(c) The seat and venue of the arbitration proceedings
shall be Chennai, Tamil Nadu, as stipulated in Clause
66 of the agreement.
(d) The arbitration shall be conducted under the
auspices of the Madras High Court Arbitration Centre
in accordance with the Madras High Court Arbitration
Proceedings Rules, 2017. Fees and administrative
charges shall be governed by the Madras High Court
Arbitration Centre (Administrative Cost and
Arbitrators' Fees) Rules, 2017.
(e) All claims, counterclaims, defenses, and
contentions on merits are left open to be urged by
the parties before the learned Arbitrator.
There shall be no order as to costs.
(SUSHRUT ARVIND DHARMADHIKARI,CJ)
04.11.2026
Index : Yes/No
Neutral Citation : Yes/No
sasi
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Arb OP (Com.Div) No.511 of 2026
To
The Assistant Registrar,
Madras High Court Arbitration Centre,
Chennai-600 104.
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Arb OP (Com.Div) No.511 of 2026
THE HON'BLE CHIEF JUSTICE
(sasi)
Arb O.P(COM.DIV.) No.511 of 2026

04.11.2026
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