THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.36 of 2011 25th November, 2011 Between :- Matapalli Chalamayya and others .. Applicants And M/s.Siddharth Media Holdigns Pvt.Ltd., Chennai .. Respondent THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Arbitration Application No.36 of 2011 ORDER:- This application has been ﬁled by the applicants, who are three in number, under Section 11 (5) and 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrator to resolve the disputes that have arisen regarding the enforcement of agreement of sale dated 22-2-2007. The respondent is the owner of Ac.2.00 and 4084 Sq.Yds., comprising Sy.No.23 (new Sy.No.25/1), Patta No.19 in Visakhapatnam town. The respondent oﬀered to sell an extent of 4036 Sq.Yds., to the applicants for a consideration of Rs.2,98,00,000/-. The applicants accepted the oﬀer and the terms of sale came to be reduced into writing on 22-2-2007. The applicants paid Rs.75,00,000/- on the date of the agreement of sale. The balance sale consideration has to be paid at the time of registration i.e., on or before 30-6-2007. The respondent undertook to get necessary exemptions vide permission for sale of the property from the Government of Andhra Pradesh under the Urban Land Ceiling and Regulations Act, 1976. The respondent failed to fulfill the obligations stipulated in the agreement of sale. Thereby, disputes arose between the applicants and respondent. As per clause 12 of the agreement of sale, disputes are required to be resolved by taking recourse to the provisions of the Arbitration and Conciliation Act. The procedure for appointment of Arbitrator has also been stipulated in the said clause. The applicants nominated Sri B.V.Ramanjaneya Rao, Advocate as Arbitrator on their behalf. Whereas respondent nominated Sri R.Sankaranarayanan, Advocate, as Arbitrator on its behalf. Both the Arbitrators conducted the proceedings on 6-9-2008. They postponed the proceedings to 31-10-2008 to take a ﬁnal decision. Subsequently, the Arbitrator nominated by the respondent rescued himself from the Arbitral Tribunal under letter dated 3-1-2011. Thereby the proceedings before the Arbitral Tribunal came to be stand still. The applicants under notice dated 16-12- 2010 proposed Sri Justice B.V.Rnga Raju, a retired Judge of High Court of Andhra Pradesh, as Presiding Arbitrator. The respondent declined to give consent under letter dated 20-1-2011. Subsequently, the respondent nominated Sri K.V.Ramesh, Advocate, as Arbitrator on its behalf in place of Sri R.Shankaranayana. Hence, this application by the applicants seeking the prayer stated supra. Notice to the respondent came to be ordered on 30- 4-2011. Since the respondent failed to enter appearance either in person or through a Counsel, an ex parte order came to be passed on 17-6-2011 appointing Sri Justice A.Gopal Rao, a Retired High Court Judge, as Presiding Arbitrator. Thereupon, the respondent ﬁled Application No.811 of 2011 to set aside the ex parte order dated 17-6- 2011. The said application came to be allowed on 18-11- 2011. The respondent filed counter. The respondent reports no objection for appointment of Presiding Arbitrator. In that view of the matter, the application is allowed appointing Sri Justice A.Gopal Rao, a Retired High Court Judge, as Presiding Arbitrator. The Presiding Arbitrator is at liberty to ﬁx his own fee. There shall be no order as to costs. _________________________ B.Seshasayana Reddy, J 25th November, 2011 smr