High Court of KeralaSingle JudgeArbitration Request allowed; sole Arbitrator ap...

M/S. INKEL LIMITED v M/S. MANSIONS and COCHIN SMART MISSION LIMITED

Case / Petition Number:A.R.No.245 of 2024
Neutral Citation:2025:KER:15667

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Syam Kumar V.M.
Judgment Date
2025-02-18
Court Decision / Holding
Arbitration Request allowed; appoints Sri S. Jagadees (retired District Judge) as the sole Arbitrator to resolve disputes under Annexures A2 and A4. The Arbitrator may entertain all disputes, including questions of arbitrability, jurisdiction, and limitation. The Registry is to communicate the order to the Arbitrator within ten days, obtain a Disclosure Statement under Section 11(8) read with Section 12(1), and issue a certified copy of the order with the Disclosure Statement appended. Arbitrator’s fees to be governed by the Fourth Schedule of the Act.
Final Disposition
Arbitration Request allowed; sole Arbitrator appointed; dispute scope limited to Annexures A2 and A4 with 2nd respondent not joined unless pursuant to a Tripartite Agreement; arbitration to proceed under the Fourth Schedule fees regime.

Parties to the Case

Appellants / Petitioners

  • M/S. INKEL LIMITED

Respondents

  • M/S. MANSIONS
  • COCHIN SMART MISSION LIMITED

Legal Representation & Advocates

Counsels for Petitioners

  • • AMITH KRISHNAN H.
  • • P.DEVIKRISHNA
  • • GAYATHRI C.H.
  • • ANNA MARY MATHEW
  • • B.G.HARINDRANATH (SR.)

Counsels for Respondents

  • • Ranjith Varghese
  • • RAHUL VARGHESE(K/000851/2010)
  • • SANTHA VARGHESE(K/000450/1976)
  • • GEO KENNEDY K.(K/003663/2022)
  • • RANJAN BABU JOSEPH(K/003379/2023)
  • • K.L.VARGASE (SR.)(K/000208/1974)

Case Synopsis & Summary

M/S INKEL LIMITED filed AR 245/2024 under Section 11 of the Arbitration and Conciliation Act, 1996, seeking to appoint an Arbitrator to resolve disputes arising from the consultancy and construction contracts connected with the project titled Extension of Cancer Specialty Block for General Hospital, Ernakulam under the Smart City Mission. The petitioner had a consultancy agreement with the 2nd respondent (Cochin Smart Mission Ltd.) and, following tenders, a bid was won by the 1st respondent (MANSIONS). The tender documents (Annexure A2) and the Construction Agreement (Annexure A4) contained arbitration clauses, culminating in Annexure A6 invoking arbitration. The petitioner asserts a unilateral appointment provision in Annexure A4’s framework; the 1st respondent disputes this, arguing that the relevant arbitration clause is Clause 25 of the General Conditions of Contract (Annexure R1(f)) and that disputes between petitioner and 1st respondent are arbitrable, with the 2nd respondent either not a party to arbitration or only per tripartite arrangements. The court notes the petitioners and 1st respondent are in agreement on the arbitration clause’s existence and invocation, and that the 2nd respondent’s involvement is contested. The AR is allowed; a retired District Judge, Sri S. Jagadees, is appointed as the sole Arbitrator for disputes under Annexures A2 and A4, including questions of arbitrability, jurisdiction and limitation, with costs governed by the Fourth Schedule of the Act. The Registry will communicate and obtain disclosure statements as required under Section 11(8) and Section 12(1).

Provisions of Law Cited

Section 11 of the Arbitration and Conciliation Act, 1996Section 11(8) read with Section 12(1) of the Arbitration and Conciliation Act, 1996Fourth Schedule of the Arbitration and Conciliation Act, 1996

Legal Doctrines & Maxims

  • ad idem
  • Dual test for compelling a non-signatory to arbitration (Ajay Madhusudan Patel v. Jyotrindra S Patel)
  • Unilateral appointment of Arbitrator is invalid (Central Organisation for Railway Electrification v. ECI SPIC SMO MCML (JV))

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that there exists a binding arbitration clause between the petitioner and the 1st respondent under Annexures A2 and A4, with Annexure A6 invoking arbitration. It asserts that the 2nd respondent (Cochin Smart Mission Ltd.) does not bear an arbitration clause, and that the disputes are arbitrable between the petitioner and the 1st respondent. It relies on the principle that unilateral appointment by the Managing Director, as contemplated in Annexure A2/A4, is invalid in light of the controlling authority (Central Organisation for Railway Electrification v. ECI SPIC SMO MCML (JV)). The petitioner seeks the Court to appoint a sole Arbitrator and to restrict the arbitration to the contracts in Annexures A2 and A4.

Contentions of Respondents

The 1st respondent contends that Clause 25 of the General Conditions of Contract (Annexure R1(f)) governs arbitration under Annexure A4 rather than the tender document; it supports appointment of an impartial arbitrator by the Court for all disputes, including the involvement of the 2nd respondent via a tripartite arrangement (Annexure R1(a) and Annexure R1(e)). It asserts that the 2nd respondent is not a party to the arbitration invoked under Annexure A2. The 2nd respondent not having invoked Section 11 is highlighted, and it is argued that disputes are primarily between the petitioner and the 1st respondent while possibly including the 2nd respondent per a separate Tripartite Agreement.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Central Organisation for Railway Electrification v. ECI SPIC SMO MCML (JV)2024 SCC Online SC 3219PositiveCited as authority for invalidity of unilateral appointment of Arbitrators.
Ajay Madhusudan Patel v. Jyotrindra S Patel[(2025) 2 SCC 147]Mentioned OnlyReferenced for the dual test for compelling a non-signatory to arbitration; not applied to the present case.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A.R.No.245 of 2024 1 ``` 2025:KER:15667 ``` **==> picture [58 x 57] intentionally omitted <==** ``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` ``` PRESENT ``` ``` THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. ``` ``` TUESDAY, THE 18[TH] DAY OF FEBRUARY 2025 / 29TH MAGHA, 1946 ``` ``` AR NO. 245 OF 2024 ``` ## **`PETITIONER`** ``` M/S. INKEL LIMITED AGED 33 YEARS REPRESENTED BY ITS SENIOR MANAGER (LEGAL AND ADMINISTRATION) DOOR NO. 7/473 ZA- 5&6, AJIYAL COMPLEX, POST OFFICE ROAD, KAKKANAD, COCHIN, PIN - 682030 ``` ``` BY ADVS. ``` ``` AMITH KRISHNAN H. P.DEVIKRISHNA GAYATHRI C.H. ANNA MARY MATHEW B.G.HARINDRANATH (SR.) ``` ## **`RESPONDENTS`** ``` 1M/S. MANSIONS RAGHU BHAVAN, TAGORE NAGAR, VAZHUTHAKKADU, THIRUVANANTHAPURAM, PIN - 695014 ``` ``` 2COCHIN SMART MISSION LIMITED 9TH FLOOR, REVENUE TOWER, PARK AVENUE ROAD, KOCHI, PIN - 682011 ``` A.R.No.245 of 2024 2 ``` 2025:KER:15667 ``` **==> picture [58 x 57] intentionally omitted <==** ``` BY ADVS. Ranjith Varghese RAHUL VARGHESE(K/000851/2010) SANTHA VARGHESE(K/000450/1976) GEO KENNEDY K.(K/003663/2022) RANJAN BABU JOSEPH(K/003379/2023) K.L.VARGHESE (SR.)(K/000208/1974) ``` ``` THIS ARBITRATION REQUEST HAVING COME UP FOR ADMISSION ON 18.02.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` A.R.No.245 of 2024 3 ``` 2025:KER:15667 ``` _**O R D E R**_ **==> picture [58 x 57] intentionally omitted <==** The petitioner has filed this Arbitration Request invoking Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act”) seeking to appoint an Arbitrator to resolve the disputes that have arisen between the petitioner and the respondents. 2. The petitioner entered into Annexure A1 consultancy contract dated 08.07.2019 with the 2[nd] respondent, Cochin Smart Mission Ltd., for the project “Extension of Cancer Specialty Block for General Hospital, Ernakulam under Smart City Mission, General Hospital, Ernakulam.” In furtherance thereof, petitioner invited tenders vide Annexure A2, and the 1[st] respondent placed a bid. Being the successful bidder, Annexure A3 letter of acceptance was issued to the 1[st] respondent and Annexure A4 agreement was executed with the 1[st] respondent. Later disputes arose between the petitioner and 1[st] respondent and a reference was made to the Dispute Redressal Committee which rendered Annexure A5 . The 1[st] respondent was not agreeable to Annexure A5 and hence it invoked the arbitration clause viz, Clause 25 of Annexure A4 vide Annexure A6. The relevant arbitration clause A.R.No.245 of 2024 4 **==> picture [58 x 57] intentionally omitted <==** `2025:KER:15667` envisaged a unilateral appointment of the Arbitrator by the Managing Director. As per the dictum in **Central Organisation for Railway Electrification v. ECI SPIC SMO MCML (JV) a joint venture company** [2024 SCC Online SC 3219] clauses enabling unilateral appointment of Arbitrators are invalid. Hence this Arbitration Request invoking Section 11 of the Act. 3. A counter affidavit has been filed by the 1[st] respondent. Averments in the Arbitration Request have been controverted therein and in paragraph 10 thereof, it has been stated that the relevant clause for appointment of the Arbitrator as per the Construction Contract Agreement is Clause 25 of ‘General Conditions of Contract’ which forms part of Annexure A4 ‘Construction Agreement’ as stated in Clause 4 (viii) of the said agreement and not in the tender document referred to under Annexure A2. The extract of the General Conditions of Contract containing Clause 25 regarding the Settlement of Disputes and Arbitration has been produced as Annexure R1 (f). It is further stated in the counter affidavit that the 1[st] respondent is _“agreeable for appointment of an impartial Arbitrator by this Hon’ble Court with reference to all disputes between the petitioner herein, 1[st] respondent and 2[nd]_ A.R.No.245 of 2024 5 **==> picture [58 x 57] intentionally omitted <==** `2025:KER:15667` _respondent under Annexure A4 Construction Agreement and Annexure R1 (a) Tripartite Agreement to Arbitration by a sole Arbitrator for adjudication of all disputes in terms of Annexure A6 notice and Annexure R1(e) notice.”_ No reply affidavit has been filed by the petitioner to the said counter affidavit by the 1[st] respondent. The 2[nd] respondent has not filed any counteraffidavit or objection to the prayers sought in the Arbitration Request or to the counter-affidavit filed by 1[st] respondent. 4. Heard Sri. B. G. Harindranath, Senior Advocate, instructed by Sri. Amith Krishna Advocate for the petitioner, Sri.Ranjith Varghese, Advocate for the 1[st] respondent and Smt. M.U. Vijayalakshmi Advocate for the 2[nd] respondent. 5. I note that the petitioner and the 1[st] respondent are at _ad idem_ regarding the existence of a clause binding them to arbitrate the disputes and differences arising between them under Annexure A2 and Annexure A4. They are also in unison regarding the due invocation of the arbitration clause vide Annexure A6. Hence, I deem it fit and proper to allow the Arbitration Request and to appoint a retired District Judge from the panel of Arbitrators maintained by this Court as the Arbitrator to resolve the disputes/differences between the petitioner and the 1[st] respondent under Annexures A2 and A4. A.R.No.245 of 2024 6 **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:15667 ``` As regards Annexure A1 consultancy agreement between the petitioner and the 2[nd] respondent is concerned, the same does not contain an arbitration clause. Further the Arbitration Request does not state that any dispute or difference exists between the petitioner and the 2[nd] respondent. Moreover the Arbitration Request does not reveal that the dual test for compelling a non signatory to arbitration proceedings as laid down by the Honourable Supreme Court in **Ajay Madhusudan Patel v. Jyotrindra S Patel** [(2025) 2 SCC 147] has been satisfied as regards the 2[nd] respondent. Hence, arbitration under Annexure A2/A4 can only be between the petitioner and the 1[st] respondent. Though the 1[st] respondent has along with the counter affidavit produced a tripartite agreement (Annexure R1(a)) and a notice of invocation (Annexure R1(e)) issued to the 2[nd] respondent, there is no invocation of Section 11 by the 1[st] respondent. Hence, the mandates to direct the 2[nd] respondent to join in as a party to the arbitration proceedings sought vide this Arbitration Request are not seen met. Accordingly, this Arbitration Request stands allowed as follows : - (i) Sri.S.Jagadees (retired District Judge), ‘Thoppil House’, A.C.George Lane, Unichira, A.R.No.245 of 2024 7 **==> picture [58 x 57] intentionally omitted <==** `2025:KER:15667` Thrikkakara P.O., Ernakulam, is nominated as the sole Arbitrator to resolve the disputes that have arisen between the petitioner and the 1[st] respondent under Annexure 2 and Annexure 4. (ii) The learned Arbitrator may entertain all disputes/issues between the parties in connection with the said agreement, including questions of arbitrability, jurisdiction and limitation, if any, raised by the parties. (iii) The Registry shall communicate a copy of this order to the learned Arbitrator within ten days from today and obtain a Statement of Disclosure from the learned Arbitrator as stipulated under Section 11(8) read with Section 12(1) of the Act. (iv) Upon receipt of the Disclosure Statement, the Registry shall issue to the learned Arbitrator a certified copy of this order with a copy of the Disclosure Statement appended. The Original of the Disclosure Statement shall be retained in Court. (v) The fees of the learned Arbitrator shall be A.R.No.245 of 2024 8 **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:15667 ``` governed by the Fourth Schedule of the Act. Sd/- **SYAM KUMAR V.M. JUDGE** smm A.R.No.245 of 2024 9 ``` 2025:KER:15667 ``` **==> picture [58 x 57] intentionally omitted <==** ## **`APPENDIX OF AR 245/2024`** ## **`PETITIONER ANNEXURES`** |**`Annexure A1`**|**`A TRUE COPY OF THE CONSULTANCY CONTRACT`**| |---|---| ||**`DATED 08.07.2019`**| |**`Annexure A2`**|**`A TRUE COPY OF THE TENDER DOCUMENT`**| ||**`FLOATED BY THE PETITIONER`**| |**`Annexure A3`**|**`A TRUE COPY OF THE LETTER OF ACCEPTANCE`**| ||**`DATED 11.10.2019`**| |**`Annexure A4`**|**`A TRUE COPY OF THE AGREEMENT EXECUTED BY`**| ||**`THE 1ST RESPONDENT PURSUANT TO THE BID`**| ||**`NO.46/GH-CSML/INKEL/2019-20 DATED`**| ||**`05.11.2019`**| |**`Annexure A5`**|**`A TRUE COPY OF THE PROCEEDINGS OF THE`**| ||**`DISPUTE REDRESSAL COMMITTEE DATED`**| ||**`07.10.2024`**| |**`Annexure A6`**|**`A TRUE COPY OF THE LETTER DATED`**| ||**`04.11.2024 OF THE 1ST RESPONDENT GIVING`**| ||**`NOTICE FOR APPOINTMENT OF ARBITRATOR`**| ## **`RESPONDENT ANNEXURES`** |**`Annexure - R1(b)`**|**`True copy of statement filed before the`**| |---|---| ||**`Writ Court`**| |**`Annexure - R1(c)`**|**`True copy of letter dt. 22.09.2023`**| |**`Annexure - R1(d)`**|**`True copy of letter dt. 21.02.2024`**| |**`Annexure - R1(e)`**|**`True copy of the Notice for Arbitration`**| ||**`issued by the 1st Respondent to the 2nd`**| ||**`Respondent.`**| |**`Annexure - R1(f)`**|**`True copy of clause 25 of General`**| ||**`Conditions of Contract`**| |**`Annexure - R1(a)`**|**`True copy of Tripartite Agreement`**| ||**`entered into between the Petitioner, the`**| ||**`1st Respondent and the 2nd Respondent`**| A.R.No.245 of 2024 10 **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:15667 ```