Facts
The Petitioner (formerly Orix Auto Infrastructure Services Ltd.) leased a Range Rover Velar to the Respondent under a Master Lease Agreement dated December 23, 2023
Source reference: para. 1-2Following an accident on August 12, 2024, the lease was prematurely terminated, making the Respondent liable for certain dues
Source reference: para. 4The Respondent failed to pay ₹25,22,753/-, prompting the Petitioner to invoke arbitration via notice on August 19, 2025
Source reference: para. 5The Respondent challenged the petition on grounds of the Petitioner's name change, lack of authorization, failure to attempt pre-arbitral mutual discussions, and improper service of the Section 21 notice
Source reference: paras. 7-11Issues
1. Whether a change in the corporate name of a party affects its rights and obligations under an existing arbitration agreement
Source reference: para. 162. Whether pre-arbitral mutual discussion clauses are mandatory conditions precedent to filing a Section 11 petition
Source reference: para. 193. Whether the Section 21 notice was validly served via email in the absence of a physical post report
Source reference: para. 21Law Applied
The Court primarily applied Section 11(6) of the Arbitration and Conciliation Act, 1996 regarding the appointment of an arbitrator
Source reference: para. 1Section 23(3) of the Companies Act, which stipulates that a change of name does not affect any rights or legal proceedings of a company
Source reference: para. 16Amrit Lal Bajaj & Co. v. Vysya Leasing and Finance Ltd. and Surendra Nath Shukla v. Indian Airlines Corporation, which establish that a corporate entity continues despite a name alteration
Source reference: para. 16principle from Coach Com v. DME, holding that such clauses are directory and not mandatory
Source reference: para. 19-20Reasoning
The Court rejected the Respondent’s objection regarding the Petitioner's identity, noting that the Certificate of Incorporation from the MCA proved the transition from Orix Auto Infrastructure to Orix Corporation India Ltd. was a mere name change with no change in management
Source reference: paras. 12, 16The Court validated the authorization of the representative, Mr. Tarun Kumar Ghai, through a chain of Power of Attorneys derived from a Board Resolution
Source reference: para. 17Addressing the pre-arbitral "mutual discussion" clause, the Court held it to be directory, meaning its non-fulfillment is not an impediment to invoking arbitration
Source reference: para. 20the Court confirmed the validity of the Section 21 notice service, as the Respondent admitted to the email address used, satisfying the statutory requirements despite the lack of speed post confirmation
Source reference: paras. 21-22Holding
The Court allowed the petition, holding that a valid arbitration agreement exists under Article 15 of the Lease Agreement
The Court appointed Ms. Isha Bhalla as the Sole Arbitrator to adjudicate the dispute under the aegis and rules of the Delhi International Arbitration Centre (DIAC)
Source reference: para. 28(i)-(ii)The Court clarified that all rights and contentions regarding merits and arbitrability remain open for the Arbitrator’s determination
Source reference: para. 28(vi)Original Court PDF
Orix Corporation India LtdvsPeters Surgical India Pvt Ltd
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