AI Structured Summary
Not yet generated for this judgment
Judgment
The Arbitration Application is filed seeking the appointment of an Arbitrator under section 11(6) of The Arbitration and Conciliation Act, 1996 ('A & C Act')
The disputes between the parties arise out of construction work carried out by the respondents on the land owned by the applicant. The parties entered into a Development Agreement-cum-General Power of Attorney ('DAGPA') on 29.02.2020 with regard to development and construction of buildings on the land owned by the applicant. The said Agreement contains an Arbitration Agreement in Clause 23 which states that any disputes arising between the parties shall be referred to Arbitrators each party appointing one Arbitrator and that the Arbitrators decision shall be final.
Clause 25 of the DAGPA further elaborates that in the event of default of any party in complying and fulfilling their part of performance and obligation agreed therein shall be entitled to seek specific performance of the Agreement against the defaulting party with costs as assessed by an Arbitrator.
The disputes between the parties would be evident from a Legal Notice dated 01.04.2023 issued by the applicant to the respondents outlining several grievances of the applicant with regard to the quality of the construction undertaken by the respondents. In their reply Notice dated 27.04.2023, the respondents denied the applicant's grievance. Consequently, the applicant was constrained to issue a Legal Notice dated 19.06.2023 invoking Arbitration Clause of the Agreement. In the said Notice, the applicant also suggested the name of a Retired District and Sessions Judge for appointing as an Arbitrator. The respondents' filed a reply to this Legal Notice on 15.07.2023, wherein, they suggested the name of another Retired District and Sessions Judge for appointing as an Arbitrator.
On 08.02.2023, the applicant approached the District Consumer Disputes Redressal Commission-II at Hyderabad ('DCDRC'), by filing a Consumer Complaint (C.C.(SR No.3180 of 2023) against the respondents under the Provisions of The Consumer Protection Act, 2019 and the same was rejected vide a Docket Order dated 14.12.2023 by the DCDRC on the ground that the DCDRC does not have the power to entertain partition of the property and grant mandatory injunctions.
The applicant also filed F.A. No.182 of 2024 before the Telangana State Consumer Disputes Redressal Commission at Hyderabad ('TSCDRC'), against the impugned Docket Order dated 14.12.2023. This Appeal was subsequently dismissed on 05.08.2024 following the withdrawal of the said Appeal by the applicant.
It is relevant to note that the applicant's Consumer Complaint was rejected at the SR stage. The only objection raised by learned counsel appearing for the respondents is that since the applicant has already approached the DCDRC for consumer redressal, he is precluded from simultaneously invoking the Arbitration Agreement. On merits of the matter, counsel also submits that the applicant took possession of the property voluntarily and raised complaints regarding the quality of the construction, thereafter.
This Court is of the view that mere filing of a case before the District Consumer Disputes Redressal Commission-II, Nampally, Hyderabad, does not bar the applicant from invoking the Arbitration Agreement agreed upon by the parties under the DAGPA dated 29.02.2020. This is a statutory remedy that the applicant is entitled to avail. In any event, the applicant's Consumer Complaint was rejected at the SR stage due to lack of jurisdiction of the District Consumer Disputes Redressal Commission-II, to entertain the partition of property and grant mandatory injunctions. Furthermore, the Arbitration Agreement provides for the adjudication of any dispute arising between the parties by an Arbitrator under the Provision of the A & C Act. The Arbitration Agreement clearly covers the dispute raised by the applicant regarding the allegation that the construction is not upto the mark.
Hence, Sri D.Hemanth Kumar, Retired District Judge, R/o. H.No.8-3-1114/1/101, Flat No.101, Kanakadharas Ramakrupa Enclave, Keshav Nagar, Yellareddyguda, VTC: Khairatabad, PO: Srinagar Colony, Hyderabad - 500 073, Mobile No. 8309280473, is hereby appointed as the Sole Arbitrator to adjudicate the disputes between the parties. The parties shall appear before the Learned Arbitrator on 21.08.2026 at 11.00 A.M. along with a copy of this order. The Learned Arbitrator shall thereafter proceed with the Arbitral Proceedings in accordance with law.
The parties are at liberty to raise all the contentious issues before the learned Arbitrator. The fee of the Arbitrator as well as the other terms and conditions, shall be settled by the parties in consultation with the Arbitrator so appointed.
Arbitration Application No.125 of 2025, along with all connected applications, is accordingly disposed of. There shall be no order as to costs.