THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE K.S. APPA RAO C.M.A No.215 of 2011 JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) This appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is filed challenging the order dated 22.12.2010 passed by the Chief Judge, City Civil Court, Hyderabad in Arb.O.P.No.1736 of 2010, whereby the petition filed by the respondents herein was allowed directing them to furnish the particulars of their bank account to the appellant herein within 15 days from the date of that order, and further directing the appellant herein to deposit the entire arrears of rent due and payable by it in respect of the petition schedule premises with effect from January, 2010 till the date of the said order at the rate of Rs.57,500/- per month. For the sake of convenience, in this order, the appellant and the respondents will be referred to as “tenant” and “landlords”, respectively. The landlords filed the above O.P stating that as per the terms and conditions of the lease agreement entered between the parties, the monthly rent payable is at the rate of Rs.50,000/- exclusive of electricity charges etc., and the rent has to be enhanced by 15% on completion of every 36 months; that the monthly rent payable with effect from 15.01.2010 is Rs.57,500/-; that the tenant committed default of rent from January, 2010 to May,2010 amounting to Rs.2,87,500/-; that as per Clause 6 of the lease agreement, in the event of difference of opinion or any dispute with regard to the terms of the lease agreement, the same can be resolved by an Arbitrator through Arbitration; that they got issued a legal notice to the tenant on 12.07.2010 for giving consent for appointment of an Arbitrator and proposed the name of Mohammed Shujauddin, Advocate, as an Arbitrator, to which the tenant sent a reply stating that they are not agreeable for the proposal and proposed the name of one Mr.Sudhakar, the Manager of the tenant company as Arbitrator; that the tenant deliberately failed to pay the arrears of rent amounting to Rs.4,60,000/- for the period of eight months as on the date of filing of the petition i.e., from January, 2010 to August, 2010. In the counter filed by the tenant, though it did not deny the agreement, which provides an arbitration clause, but stated that it incurred a sum of Rs.8,00,000/- for carrying out repairs to the structures of the building, which is to be paid by the landlords; that the landlords promised to resolve those disputes, but failed to do so; that a sum of Rs.1,50,000/- is available under the custody of the landlords and that instead of availing the remedy of arbitration, the landlords filed the O.P and therefore, prayed to dismiss the O.P. To substantiate the case of the landlords, though none were examined, Exs.P.1 to P.7 were marked. On behalf of the tenant, no oral or documentary evidence was adduced. The learned Judge, after considering Exs.P.1 to P.7 and also the clauses in the agreement, allowed the O.P as aforementioned. Aggrieved by the same, the tenant filed this appeal. Today, when the matter is taken up for consideration, it is represented that the appellant/tenant has already paid the entire arrears of rents i.e., Rs.7,47,500/- to the respondents/landlords by way of Demand Draft bearing No.224440, dated 16.03.2011 drawn in favour of the Chief Judge, City Civil Court, Hyderabad, which was handed over to the Bailiff of the City Civil Court in execution of the warrant of attachment in E.P.No.71 of 2001 in O.P.No.1736 of 2010. Having regard to the fact that the appellant is under obligation to pay the rents and that even though the respondents have invoked the arbitration clause, the appellant has not consented for appointment of an arbitrator, the Court below is justified in allowing the O.P directing the appellant to deposit the arrears of rent. Therefore, no infirmity is discernable in the impugned order warranting interference by this Court. The appeal is accordingly dismissed. There shall be no order as to costs. ________________ A. GOPAL REDDY, J ________________ K.S. APPA RAO, J Date: 23.08.2011 va