AI Structured Summary
Not yet generated for this judgment
Judgment
Heard Sri Durga Charan, learned counsel for the petitioner, and Sri Syed Hassan Bin Taher, learned counsel for the respondent.
This Application is filed under Section 11(5) &(6) of Arbitration and Conciliation Act, 1996, seeking appointment of an arbitrator.
The applicant and the respondent entered into a registered Development Agreement-cum-General Power of Attorney bearing document No.5818 of 2023, dated 20.10.2023 on the specific terms and conditions mentioned therein with regard to development of house property bearing municipal No.10-5-4/2, (PTIN No.1071009952) admeasuring 145.00 sq.yds, situated at Masab Tank, Hyderabad.
Pursuant to the said Development Agreement-cum-General Power of Attorney, the applicant was put in possession of the suit schedule property. He also paid an amount of Rs.12,00,000/- towards security deposit and obtained building permission. After obtaining the building permission, a dispute arose with the neighbours of the suit schedule property regarding the respondent’s ownership of the subject property. Therefore, the petitioner could not proceed with the construction.
The respondent issued a legal notice dated 05.01.2025 cancelling the said Development Agreement-cum-General Power of Attorney. Upon receipt of the said notice, the applicant/petitioner issued a reply notice dated 10.02.2025 under Section 21 of the Arbitration and Conciliation Act, 1996, requesting the respondent to propose three names for the appointment of an arbitrator to adjudicate the disputes. Though the respondent acknowledged receipt of the said notice, she did not propose any name. Therefore, the applicant issued a second notice dated 23.06.2025 to the respondent reiterating the said request. Despite receiving and acknowledging the said notice, the respondent did not respond. Hence, the applicant has filed the present application.
Clause 20 of Development Agreement-cum-General Power of Attorney dated 20.10.2023 is relevant and the same is extracted hereunder:
“20.In case of any dispute arises between the parties hereto touching these presents the matter shall be referred to the arbitrators one chosen by each party and in case of any difference of opinion between such arbitrators, they shall nominate a common umpire and their award shall be final and binding on both the parties and the relevant provisions of the Arbitration Act shall apply.”
Learned counsel for the respondent filed a counter opposing the present application, contending that the respondent had not received the notice issued under Section 21 of the Arbitration and Conciliation Act, 1996, which is mandatory.
Whereas, learned counsel for the petitioner would contend that the petitioner had issued a notice under Section 21 of the Arbitration and Conciliation Act, 1996, dated 05.01.2025, to the address mentioned by the respondent in the said notice, namely, Major Residency, Flat No. 501, 13-B Block, Opposite Police Officers' Mess, Masab Tank, Hyderabad, Telangana State - 500028.
Perusal of the postal receipts and acknowledgments would reveal that the applicant had sent the notice under Section 21 of the Arbitration and Conciliation Act, 1996, to the aforesaid address of the respondent. In the counter, the respondent has mentioned the very same address. Therefore, the respondent cannot now contend that she had not received the said notice and that the same was served only on her counsel. Hence, the said contention of the respondent is untenable and cannot be accepted.
As discussed supra, there are disputes between the applicant and the respondent with regard to the execution of the registered Development Agreement-cum-General Power of Attorney dated 20.10.2023, and the same are arbitrable in nature. Therefore, this application is liable to be allowed.
In the light of the aforesaid discussion, this application is allowed and Sri Mangari Rajender, Retired District Judge, is appointed as an arbitrator to adjudicate the disputes between the applicant and respondent. Liberty is granted to the parties to take all the pleas which they have raised herein, before the learned arbitrator. Miscellaneous applications, if any, shall stand dismissed. There shall be no order as to costs.