KONE Elevator India Private Limited vs Shree Vardhman Infrahome Pvt Ltd

Arb OP (Com.Div) No.581 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. 581 of 2026
HCMA011987942026
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KONE Elevator India Private Limited
Rep.by C.V.S.Krishnakumar,
Having Registered office at
Plot No A28, SIPCOT Industrial Park,
Sriperumbudur Taluk,
Kancheepuram District - 602 105,
Tamil Nadu Having Branch Offices at,
1) AKG Tower, Sector 15, Part 2,
Chandan Nagar, Gurgaon,
Haryana-122001.
2) 9th Floor, Prestige Centre Court Block,
Vijaya Forum Mall, No.183, NSK Salai,
Arcot Road, Vadapalani,
Chennai-600026, Tamil Nadu.
Petitioner(s)
Vs
Shree Vardhman Infrahome Pvt Ltd
Rep. by its Authorised Signatory,
301, 3rd floor, Indra Prakash Building,
Barakhamba Road, Barakhamba,
New Delhi-110001,
Also at Shree Vardhman Flora,
Sector 90, Gurgaon, Haryana-122505.
Respondent(s)
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Arb OP (Com.Div) No.581 of 2026
PRAYER: Petition filed under Section 11(6) of the Arbitration and
Conciliation Act, 1996 to appoint any person as it deems fit as the Sole
Arbitrator under Section 11(6) of the Arbitration and Conciliation Act,
1996, as amended, to resolve the disputes and differences arising
between the parties under or in connection with the Annual
Maintenance Contract dated 01.01.2022 bearing quotation reference
No.T0004087773 and Annual Maintenance Contract dated 02.09.2022
bearing ref No.0041933040.
For Petitioner(s): Ms.Mahima Makhija
For Respondent(s):No appearance
ORDER
The petitioner filed this petition under Section 11(6) of the
Arbitration and Conciliation Act, 1996 seeking the appointment of a
Sole Arbitrator to resolve the commercial disputes between the
parties.
2.1. The facts in a nutshell are that the petitioner is engaged
in manufacturing, installing, maintaining and modernizing elevators,
escalators and travelators. The respondent engaged the petitioner
to maintain six elevators at its residential project, Shree Vardhman
Flora, Sector-90, Gurgaon, Haryana. The parties executed an
Annual Maintenance Contract dated 27.01.2022 (bearing quotation
reference No.T-0004087773) for a total value of Rs.6,32,908.87.
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Arb OP (Com.Div) No.581 of 2026
2.2. Subsequently, the respondent engaged the petitioner for
maintenance of an additional 10 elevators at the same site. In this
regard, the parties executed a second AMC dated 02.09.2022
(bearing reference No.0041933040) for a total value of
Rs.16,92,891.44. Under the contract terms, the respondent was
obligated to settle invoices annually/quarterly in advance or within
five days of receipt. Delayed payments attract interest at 18% per
annum.
2.3. The petitioner rendered services and issued regular
monthly invoices. However, the respondent made irregular part-
payments until 15.12.2022 and thereafter defaulted entirely.
According to the running account maintained by the petitioner, a
principal sum of Rs.13,54,808.35 remains unpaid towards service
invoices. Additionally, Rs.38,641/- is due on account of un-
deposited TDS credit certificates, bringing the aggregate claim to
Rs.13,93,449.35.
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Arb OP (Com.Div) No.581 of 2026
2.4. The petitioner issued multiple email reminders. On
26.04.2023, the respondent sent an email alleging non-functionality
of an elevator at Tower B5 and indicated an intention to terminate
the AMC. The petitioner promptly refuted these allegations,
clarifying that the elevator required high-value materials which were
awaiting payment, and cautioned against third-party interference
with the elevators. Thereafter, the petitioner sent a Demand Notice
dated 29.11.2023 and a Legal Notice dated 08.10.2024 calling for
payment.
2.5. As the dues remained unpaid, the petitioner issued a
Notice of Arbitration under Section 21 of the Act on 18.07.2025,
proposing the nomination of a Sole Arbitrator. The notice was sent
by speed post and duly delivered to the respondent. The respondent
neither replied nor cleared the outstanding dues.
3. Both Annual Maintenance Contracts contain identical
dispute resolution clauses under Clause 11 of Appendix 2, which
reads as follows:
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Arb OP (Com.Div) No.581 of 2026
"Applicable Law: In the event of difference or dispute
resolution arising out of, under or in connection with
this contract/agreement, over the right or obligation
of parties hereto, the dispute or difference shall be
referred to the Arbitration of a Sole Arbitrator, to be
appointed by KONE. The Contract will be governed
by the laws of India and the courts of Chennai shall
have exclusive jurisdiction over any disputes
between the Parties relating to the Contract and the
provisions of the Arbitration and Conciliation Act,
1996 (including any amendments thereto) shall be
applicable to such Arbitration award shall be final
and binding upon the parties."
4. The contracts explicitly confer exclusive jurisdiction on the
Courts at Chennai. Therefore, this Court has territorial jurisdiction
under Section 11 of the Act to entertain the present petition.
5. Notice of this petition was served on the respondent.
Despite due service, the respondent chose not to enter an
appearance through counsel, did not appear in person, and failed to
file any counter-affidavit controverting the averments made in the
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Arb OP (Com.Div) No.581 of 2026
petition. The statements and documents filed by the petitioner
remain unrebutted.
6. The existence of the underlying Annual Maintenance
Contracts and the arbitration clause contained in Clause 11 is
established beyond doubt. In terms of the settled law under
Section 11 of the Arbitration and Conciliation Act, 1996, the scope
of examination by this Court at this stage is strictly confined to
verifying the existence of a valid arbitration agreement between the
parties. Since the arbitration agreement exists and the petitioner
has validly invoked arbitration under Section 21 of the Act, the
petitioner is entitled to the appointment of an independent Sole
Arbitrator to resolve the commercial disputes.
7. In view of the above facts and legal position, the petition is
allowed with the following directions:
(a) Mr.Niranjan Rajagopalan, Advocate, Madras High
Court, (Address: III-A, High Court Chambers,
Madras High Court, Chennai - 600 104), is appointed
as the Sole Arbitrator to enter upon reference and
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Arb OP (Com.Div) No.581 of 2026
adjudicate the disputes arising out of the Annual
Maintenance Contracts dated 27.01.2022 and
02.09.2022.
(b) The learned Arbitrator shall file a disclosure
statement in terms of Section 12(1) read with the
Sixth Schedule of the Arbitration and Conciliation
Act, 1996, before entering upon the reference.
(c) The seat and venue of the arbitration proceedings
shall be Chennai, in accordance with the contract
agreement.
(d) The arbitration shall be conducted under the
auspices of the Madras High Court Arbitration Centre
and in compliance with the Madras High Court
Arbitration Proceedings Rules, 2017. The fees and
administrative expenses shall be fixed in accordance
with the Madras High Court Arbitration Centre
(Administrative Cost and Arbitrators' Fees) Rules,
2017, and shared equally between the parties.
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Arb OP (Com.Div) No.581 of 2026
(e) All contentions, claims, counter-claims, and
defenses on merits are left open for determination by
the learned Sole Arbitrator.
The petition is accordingly allowed. There shall be no order as
to costs.
(SUSHRUT ARVIND DHARMADHIKARI,CJ)
04.11.2026
Index : Yes/No
Neutral Citation : Yes/No
sasi
To
The Assistant Registrar,
Madras High Court Arbitration Centre,
Chennai-600 104.
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Arb OP (Com.Div) No.581 of 2026
THE HON'BLE CHIEF JUSTICE
(sasi)
Arb O.P(COM.DIV.) No.581 of 2026

04.11.2026
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