THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.12 of 2011 12th July, 2011 Between :- M/s.Aditya Constructions, A partnershi firm having its Regd.Office at Banjara Hills, Hyderabad – rep.by its Managing Partner – P.Ravinder Rao .. Applicant And V.Rajeshwar Rao andothers .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.12 of 2011 ORDER:- This application has been taken out under sub-section (5) of Section 11 of the Arbitration and Conciliation Act, 1996, read with Para 3(i)(d) of the Scheme for Appointment of Arbitrators, seeking for appointment of an Arbitrator for resolution of the disputes between the parties that have arisen relatable to the Development Agreement-cum- General Power of Attorney, dated 9-6-2006. The applicant is a partnership firm registered with the Registrar of Firms, Government of Andhra Pradesh, with registration No.1325 of 2002, dated 9-7-2002. The applicant firm carries on real estate business. The respondents are the owners of the land admeasuring Ac.8-12 guntas comprising survey Nos.310, 316, 317 and 323 situated at Bachupally village, Qutbullapur Revenue Mandal, Ranga Reddy District. The applicant and the respondents entered into a Development Agreement-cum-General Power of Attorney, dated 9-6- 2006. At the time of entering into the Development Agreement-cum- General Power of Attorney, the applicant herein paid an amount of Rs.1,00,00,000/- (Rs.One crore only) to the respondents towards interest free refundable security deposit. The applicant agreed to complete the construction of the independent houses/villas as per the sanctioned HUDA lay-out/municipal plan and deliver 50% of the share of the constructed area to the land owners within 24 months with a grace period of six months from the date of obtaining permit. Some disputes have been cropped up between the parties relatable to the Development Agreement-cum-General Power of Attorney. As per the terms of the Development Agreement-cum-General Power of Attorney, disputes between the parties are required to be resolved by taking recourse to the provisions of the Arbitration and Conciliation Act, 1996. Clause 17 of the Development Agreement-cum-General Power of Attorney, dated 9-6-2006, reads as hereunder:- “Both the parties mutually agree that in the event of any doubt or dispute arising between the parties herein, the matter shall be referred to a mutually agreed Arbitrator and the award passed by the Arbitrator shall be binding on each party and the provisions of the Arbitration and Conciliation Act, 1996 shall be applicable. However, either party shall not stop the construction work.” The applicant issued a legal notice dated 25-10-2010 invoked clause 17 of the Development Agreement-cum-General Power of Attorney under notice dated 25-10-2010 and nominated Sri Justice G.Bikshapathi, a retired Judge of this Court, as sole Arbitrator. The respondent refused to give consent for the name proposed by the applicant. In the reply notice, dated 4-1-2011, the respondents in turn proposed the name of Sri Justice I.Pandu Ranga Rao, a retired Judge of this Court, as sole Arbitrator. The applicant expressed its disagreement to the name proposed by the respondents. The applicant has filed O.P.No.610 of 2010 on the file of the Principal District Judge, Ranga Reddy District, at L.B.Nagar under Section 9 of the Arbitration and Conciliation Act, 1996, for certain interim orders. The details of which are not much relevant for disposal of this application. Hence, this application. Notices came to be ordered on 9-3-2011. Respondents filed counter affidavit. 3rd respondent has sworn to the counter affidavit filed on behalf of R.1 to R.3. Existence of arbitration clause in the Development Agreement-cum-General Power of Attorney, dated 9-6-2006, is not disputed in the counter affidavit. Indeed, the relief sought for in the application has not been serious contested by the respondents. Heard learned Counsel appearing for the parties. Existence of the disputes between the parties relatable to the Development Agreement-cum-General Power of Attorney are not disputed by the parties. Necessarily those disputes are required to be resolved by taking recourse to the provisions of the Arbitration and Conciliation Act, 1996 and as per clause 17 of the Development Agreement-cum-General Power of Attorney. In that view of the matter, I find that the application deserves to be allowed. Accordingly, the arbitration application is allowed. No order as to costs. Sri Justice B.Subhashan Reddy, retired Chief Justice of Madras and Kerala, H.No.3-6-69/B/27&28, Avanthi Nagar, Basheerbagh, Hyderabad, is appointed as sole Arbitrator for resolution of the disputes that have arisen between the parties relatable to Development Agreement-cum-General Power of Attorney, dated 9-6- 2006. He is at liberty to fix his own fee. _________________________ B.Seshasayana Reddy, J 12th July, 2011 smr