THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.87 of 2011 8th November, 2011 Between :- Reliance Broadcast Network Limited, Having its Registered Office at 401, 4th Floor, Infinity, Link Road, Oshiwara, Andheri (W), Mumbai, Rep.by its authorized Signatory – Tony Lawrence .. Applicant And M/s.Stan Power, A partnership firm having its Office at 5, Ameena Complex, Opp. NGRI, Uppal, Hyderabad Rep.by its Managing Partner – Timoty Prakash .. Respondent THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.87 of 2011 ORDER:- This application has been taken out under sub-section (6) of Section 11 of the Arbitration and Conciliation Act, 1996 read with Scheme for Appointment of Arbitrators, 1996, seeking appointment of Arbitrator for resolution of disputes relatable to agreement dated 11-1- 2010. The petitioner is a Limited Company incorporated under the Companies Act, 1956 having its registered Office at Mumbai. It is engaged in the business of conducting and operating of FM Radio Stations and Advertisement related business activities including Out of Home advertising etc. The respondent is a partnership firm. It represented to the applicant that it secured a contract from GHMC for installation and maintenance of traffic signals at eight junctions and it has also been authorized to enter into sub-contract. The respondent offered advertisement rights to the applicant. After due negotiations between the petitioner and the respondent, terms of Agreement were reduced into writing vide Agreement dated 11-1-2010. The said agreement was subsequently modified by an Addendum dated 10-5- 2010. In terms of the said agreement, the respondent assigned to the applicant, the advertisement rights for a period of eight years for the consideration of Rs.1,30,00,000/- per annum which was to be escalated by 3% every year. In return, the petitioner had agreed to develop and put up gantries at its own cost at eight locations specified in the Authorization Agreement dated 15-12-2009. In the execution of the work, disputes cropped up between the parties. Since the agreement provides arbitration clause for resolution of the disputes, the applicant invoked the arbitration clause and appointed Sri S.Ravi, Senior Advocate, Hyderabad as the sole Arbitrator to resolve the issues/disputes that have arisen relatable to the agreement dated 11- 1-2010. The respondent issued a reply expressing its disagreement with the name proposed by the applicant as Arbitrator and instead proposed Sri P.Ram Chander, Advocate of Secunderabad Bar Association, as Arbitrator. There being no consensus with regard to the name of the Arbitrator, the applicant has filed this application seeking the prayer stated supra. Notice to the respondent came to be ordered on 13-10-2011. The applicant was also permitted to take out personal notice to the respondent by Regd.Post with Ack. Due. The petitioner took out notice to the respondent by Regd.Post with Ack.Due and filed proof of service. Despite notice being served on the respondent, none appears on its behalf. Heard learned Counsel appearing for the applicant and perused the material brought on record. As seen from the agreement dated 11-1-2010, the disputes between the parties are required to be settled by way of arbitration. For better understanding, I may reproduce the relevant clause in the agreement:- “Amicable Settlement. Any and all disputes, controversies and conflicts including a deadlock between or among the parties arising out of or relating to or in connection with this Agreement and the performance or non-performance of the rights and obligations set forth herein (a “dispute”) to be settled joint and amicably within (21) days after written notice of such dispute bas been given by one party to the other party or other parties concerned. In the event of the parties failing to settle/resolve the dispute amicably as set out hereinabove, such disputes shall be resolved by arbitration by a sole Arbitrator to be appointed by the parties mutually under the rules of Indian Council of Arbitration, New Delhi. The venue of arbitration shall be Hyderabad. The proceedings of the arbitration shall be conducted in English language. The Courts of Hyderabad shall have exclusive jurisdiction.” The applicant invoked the arbitration clause by issuing a notice dated 25-7-2011 proposing Sri S.Ravi, Senior Advocate, Hyderabad, as the sole Arbitrator. The respondent under reply notice dated 16-8-2011 refused to give consent for the name proposed by the applicant and instead it proposed the name of Sri P.Ram Chander, Advocate, as Arbitrator. Be that as it may, existence of arbitration clause for resolution of disputes between the parties is not contradicted by the respondent in the reply notice. In that view of the matter, I find that the applicant made out a valid ground for appointment of Arbitrator for resolution of the disputes relatable to the agreement dated 11-1- 2010. Accordingly, the application is allowed appointing Sri Justice C.V.N.Sastri, a retired High Court Judge, as sole Arbitrator for resolution of the disputes between the parties relatable to the agreement dated 11-1-2010. He is at liberty to fix his own fee. No order as to costs. _________________________ B.Seshasayana Reddy, J 8th November, 2011 smr