Madras High Court

Madras High Court: Artzsource's Challenge to Arbitration Award Dismissed

Updated
Nov 22, 2025 12:38 PM
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Quick Summary: Artzsource Technology Service Pvt Ltd tried to overturn a decision made by an arbitrator against them. They claimed Bharti Airtel's services were faulty, but the court didn't agree. Judge N. Anand Venkatesh dismissed their request.

The Dispute Begins

Artzsource and Bharti Airtel had a deal from July 2013 for messaging services. Artzsource ordered 30 million SMS messages monthly for Rs. 27,75,000. But from the start, there were technical problems. By February 2014, Artzsource stopped using the service and informed Airtel. Despite this, Airtel cashed a security cheque that bounced and sent bills for services Artzsource claimed they didn't use.

The Arbitration Decision

Airtel took the issue to arbitration, demanding Rs. 81,37,912, including interest. The arbitrator agreed with Airtel, ordering Artzsource to pay up. Artzsource claimed Airtel's services were below standard and that the bills were fake. But the arbitrator didn't believe them.

"The respondent is directed to pay a sum of Rs.81,37,912," the arbitrator ruled.

Artzsource's Arguments

Artzsource raised several points in court: - The arbitrator was chosen without their agreement. - The arbitration should have followed new rules from 2015. - Airtel's services were faulty, and they stopped using them in February 2014.

Airtel's Defense

Airtel countered that: - The arbitration process started before the new rules, so they didn't apply. - Artzsource had agreed to the arbitration terms and location. - The issues Artzsource raised were already considered and dismissed by the arbitrator.

Court's Decision

Judge N. Anand Venkatesh looked at the case and found: - The arbitration process was correctly followed. - Artzsource's claims were not supported by evidence. - Airtel was entitled to the payment as per the agreement.

"The petitioner has not made out any ground to interfere with the award," the judge concluded.

Verdict Summary

Artzsource's request was dismissed. They were ordered to pay Rs. 1,50,000 in costs to Airtel. The court upheld the arbitrator's decision, leaving Airtel successful in this legal battle.