THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.45 of 2011 ORDER This application has been taken out under sub Section 5 of Section 11 of Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator for resolution of the disputes relatable to the Catering Contract dated 14- 09-2006. M/s. Sri Shakti Resorts & Hotels Limited is the applicant. The applicant entered into Catering Contract with the respondent on 14-09-2006. The period of contract was from 16-5-2005 to 15-5-2008. During the subsistence of the contract, one of the applicant’s high lift vehicle which was used for carrying the food in the Inflight catering services hit the front door of Aircraft AI-443, Singapore-Hyderabad- Mumbai; AB 310/300 on 20-01-2007. The respondent deducted a sum of Rs.6,33,019/- on the ground that it incurred expenses in transferring the passengers to other Air Lines and lodging the passengers in hotels because of the damage caused to the Aircraft. The applicant resisted for deduction of the said amount from the bills payable to it. The applicant made repeated requests to the respondent to furnish particulars of the damages. The applicant issued a legal notices dated 21-5-2008, 24-08- 2008 and 17-4-2009 to the Deputy General Manager, Air India Mumbai and Commercial Manager, Air India, HACA Bhavan, Hyderabad seeking necessary particulars of the damages since the respondent has not furnished the details, the applicant invoked the arbitration clause in the Catering Contract dated 14-09-2006 and issued a notice dated 10-2-2011 nominating the Regional Director, National Aviation Company of India Limited to act as Arbitrator. The respondent issued a reply notice dated 23- 3-2011 disputing its liability. Hence, this application. Notice to the respondent came to be ordered on 20-06-2011. The respondent filed counter-affidavit. It is stated in the counter-affidavit that the respondent furnished necessary information and clarifications to the petitioner. Para 13 of the counter-affidavit needs to be noted and it is thus: “The applicant got a legal notice issued by his counsel which was received by the respondent company on 20-2-2011 and the applicant has made a request to the Regional Director to take reference of the subject incident as a dispute by issuing notices to the Inflight Catering Department of Air India (Which was earlier called as National Aviation Company of India Limited) and to act as an Arbitrator in the matter for adjudication of the alleged dispute. A reply notice dated 23-3-2011 was sent by this respondent company through their counsel wherein it was sufficiently clarified to the applicant that there was no dispute as such in the action taken by the respondent in recovering the amount due from the payments to be made to the applicant firm and it was in consonance with the terms of the contract between the applicant and the respondent company. As per the terms of the contract, it was the responsibility of the caterer to uplift meals for the passengers and for crew as per the meals Schedule. The applicant was further required to load the food and equipment etc., on the respondent aircraft and stow them in the designated or prescribed aircraft locations in accordance with the airline’s instruction. It was further agreed by the applicant that their supervisory staff shall be held responsible and accountable for handing over the galley to the cabin crew of the respondent airline after completion of the loading job.” Heard the learned counsel appearing for the parties. Learned counsel appearing for the applicant submits that the applicant has made persistent requests to the respondent company to furnish the details of the damages, but the respondent refused to furnish the details and thereby disputes arose between the parties, which are required to be resolved by way of arbitration. Learned counsel refers Clause 16.0.0 of the Catering Contract. Learned counsel appearing for the respondent submits that there are no disputes that are required to be resolved by way of arbitration and therefore question of appointing arbitrator does not arise. Indisputably, the respondent deducted an amount of Rs.6,33,019/- from the bills payable to the applicant. The applicant has issued repeated notices to the respondent to furnish the particulars of the amounts and necessary documents to pursue with the insurance company. There being no response to the notices, the applicant approached this Court invoking the arbitration clause. The disputes between the parties as per the Catering Contract are required to be resolved by way of arbitration. Clause 16.0.0 of the Catering Contract reads as hereunder: “Adjudication of disputes: Any disputes arising in the discharge of obligations by either party under the aforesaid terms and conditions or in their interpretation shall be settled through bilateral negotiations and if unavoidable, through an Arbitrator acceptable to both the parties, whose decision shall be final and binding on both” In view of the arbitration clause, I find that the petitioner made out a valid ground for appointment of an arbitrator. Accordingly, the application is allowed appointing Sri P.Lakshmana Reddy, retired High Court Judge, as an Arbitrator. He shall fix his own fees. No order as to costs. _________________________ B.SESHASAYANA REDDY,J rkk Dated: 14-11-2011