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Judgment
Dhiraj Singh Thakur, CJ
This is an application filed under Section 11 (5) & (6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) for appointment of an independent arbitrator for adjudication of disputes between the petitioners and the respondents arising out of and in connection with Contract/Development Agreement dated 30.07.2020.
Counsel for the parties do not deny that clause 34 of the said Agreement envisages settlement of disputes through the mechanism of arbitration.
For facility of reference Clause 34 of the Agreement is reproduced hereunder:
“Any dispute between the first party and the second party arising out of implementation of the agreement or anything connected to or consequential disagreement in any matter whatsoever shall be resolved through conciliation and if such conciliation recommends, it shall be referred to a sole arbitrator mutually agreed by both parties within the jurisdiction of Visakhapatnam only.”
Be that as it may, disputes having arisen between the parties in connection with and arising out of the Agreement (supra), were sought to be settled through the mechanism of arbitration in regard to which a notice dated 07.10.2022 was issued to the respondents proposing the appointment of a retired District Judge as sole arbitrator to adjudicate upon the disputes.
The respondents do not specifically deny the receipt of such a notice.
Be that as it may, the disputes having arisen between the parties are required to be adjudicated.
The Arbitration Application is accordingly allowed, Justice P. Naveen Rao, former Judge of the High Court for the State of Telangana is appointed as a sole Arbitrator, who shall enter upon the reference and adjudicate upon the disputes between the parties and render the Award within the time prescribed. The parties shall be free to file detailed claims and counter-claims before the Arbitrator, who shall be entitled to fix his fee in consultation with the parties and keeping in view the provisions of the Act of 1996.
Pending miscellaneous applications, if any, shall stand closed.