Oyo Workspaces INDIA Private Limited vs. Cashgrow Financial Services Private Limited
Facts
The petitioner, OYO Workspaces India Private Limited, is in the business of providing workspace services. The respondent, Cashgrow Financial Services Private Limited, entered into a Membership Agreement dated July 24, 2023, to occupy 25 seats in a co-working space from July 1, 2023, to June 30, 2024, at a monthly rate of ₹1,75,000/- plus GST. The respondent allegedly defaulted on payments. The petitioner invoked arbitration as per Clause 27 of the Membership Agreement via a legal notice dated February 17, 2024. The respondent was granted four weeks to file a reply to the petition seeking the appointment of an arbitrator, but failed to do so and did not appear.
Held
The Court held that a valid arbitration agreement existed between the parties as per Clause 27 of the Membership Agreement. The respondent's failure to file a reply or appear before the Court, despite being granted an opportunity, indicated their lack of contest to the petition. Consequently, the Court found it appropriate to allow the petition and appoint an Arbitrator. The Court directed the appointment of Mr. Vikas Sharma, Advocate, as the Sole Arbitrator, to conduct arbitration under the aegis of the Delhi International Arbitration Centre (DIAC) as per its rules. All rights and contentions of the parties, including arbitrability, preliminary objections, and the merits of the dispute, were left open for adjudication by the appointed Arbitrator. Parties were directed to approach the Arbitrator within two weeks.
Key Issues
1. Whether the Court should appoint an Arbitrator to adjudicate the disputes between the parties, as per Section 11 of the Arbitration and Conciliation Act, 1996, given the existence of an arbitration agreement and the respondent's failure to participate. The petitioner argued that a valid arbitration agreement exists and the respondent's non-appearance signifies their consent or lack of objection to the arbitration proceedings. The respondent's arguments were not recorded as they did not file a reply or appear before the Court.
Sections Cited
Section 11, Section 12
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 08.10.2024
This is a petition seeking appointment of an Arbitrator to adjudicate the disputes between the parties.
The petitioner is in the business of providing workspace service/solution for monetary consideration.
The respondent expressed the desire to take one of the workspace service from the petitioner and entered into a Membership Agreement dated 24.07.2023. 4. The respondent was granted the right to occupy 25 seats in the co- working space from 01.07.2023 to 30.06.2024 at the rate of ₹ 1,75,000/- per month along with the GST.
The respondent was in arrears of the said payment and hence the petitioner invoked arbitration vide legal notice dated 17.02.2024. 6. The arbitration clause is Clause 27 of the Membership Agreement and reads as under:
“27. Governing Law and Dispute Resolution: Governed by Indian law, Disputes shall be resolved by arbitrat
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.