One OC to Sri v. Seetha Rama Avadhani

Counsel for the Petitioner: Sri V. Seetha Rama Avadhani Counsel for the Respondent No.2: Sri T. Bala Mohan Reddy The Court made the following: ORDER THE HONOURABLE SRI JIISTICE K. LAKSHMAN ARBITRATION APPLICATION No.296 OF 2o24 ORDER: On 06.72.2024, this Court ordered nc,tice to respondents. h compliance with the said order and learned counsel lbr th,: applicant has filed proof of ser-vice vide Memo U.S.R.ltfo.36 of 2025 wherein, notice rsent to responde:rt Nc.1 was un-served with an endorsement hnclaimed'. Ilnciaimed amounts to servlce Sri T.Balamohan Fleddy, learned counsel entered ap[)earance on behalf of respondent No.2.

2. Heald lea^ned counsel for the petitioner and learned counsel appear ng for respondent No.2

3. Applicalt and respondents have entered Lnto an agreement of szLle on 04.06.2022 wiith regard to pur,:hase of the Scht:duled properQr i.e., CommerciaL space, Unit No.1110'Ln 1lt'Floor in Sahiti's Commercial Spacr,r Project w'ith built-up erea of 1000 Square Feet including one car parking (t) incl usive of common areas along with u::rdivided I l I I 2 KL,J AA_296_2024 share of land in an extent of 15 Square Yards under proposed construction in "Sahiti's Commercial Project" in the land admeasuring Ac.3509 Sq.yds 1n Sy.No.1 16 of Nanakramguda Village Serilingampally Mandal within GHMC limits.

4. According to the applicalt, respondent No.2 had entered Memo of Understanding, dated 12.12.2019 with respondent No.l for sale of open land admeasuring 3509 Sy.yds Sy.No. 116 of Nanakramguda Village, Serilingampally Mandal within the GHMC limits.

5. Pursuant to the said agreement of sale, dated

04.06.2022, applicant has paid an amount of Rs.77,14,606/- to respondent No.1 i.e., total sale consideration and even then respondents are not proceeding with the construction and delivered physical possession of the aforesaid flat in terms of the said agreement of sa-le. Therefore, respondent No.2 has already lodged a complaint with police, who in turn registered a case and thereafter the sarne was transferred to CCS. Therefore, invoking the arbitration clause, applicant has issued notice, dated I '':::7 J KL,J AL 296 2024

21.L0.2023 1-c respondents. Despite receivin;3 and acknowleclging'-he said notice, there was no response from responderLts. TtLerefore, he has hled the present application to appoinl. arbitrator to adjudicate the disputes betu'een the applicant and rt:spondents.

6. Whe:reas, Sri T. Bala Mohan Reddy, learned counsel appearing for respondent No.2, on instrr-rctions, would submit ttLat thr: sole proprietor of respondent No.1,l is the owner of r\c.O.2) guntas or 3509 square yards in Sy.No.116 of Nalakr:amguda Village, Serilingampally N{andal, Ralga Reddy Diritrict. The sole proprietor of respondent No.2 was the author of the agreement of sale, dated O4.06.'2(.122 and Memoranrlum of Understanding dated 12.12.2OI9. Notice, dated 21. LO.2O23 is not in accordance with Section 21 of the Arbitration and Conciliation Act, 1996 and on 'ihe said ground, rt:sponrlent No.2 opposing the present appli<:ation.

7. As Ciscusrsed supra, there are disputes between applicant ald respondents with regard to the execr-rtion of agreement of sale, dated 04.06.2022. The sarle a.re arbitrable in nalure - i.:it I 4 KL,J AA_296_2024

8. In Similar circumstances, vide order, dated27.O9.2022 in ARB.A.No. 13O of 2024, this Court, having allowed the arbitration application appointing an qrbitrator, granted liberty to respondent No.2 to raise the aforesaid two contentions before the sole arbitrator and arbitrator shall decide the same as preliminaqr issue. In the light of the same, this Court is of the considered view that there are disputes between the applicant and respondents. The same are arbitrable in nature.

9. Clarrse 18 of the said agreement of sale deals with arbitration clause. It is relevant and extracted belov/' "18. In case of any dispute arise between the parties, have to settle amicable in the event of any failure to setfle the dispute or difference shall be referred to the arbitrator and the arbitration proceedings will be conducted according to the provisions of the Indian Arbitration and Conciliation Act, 1996. The arbitration award will be binding r.rpon the both the parties and frnal. The place of the arbitration will be at Hyderabad and proceedings will be in English."

1...' -.{!r. f KL,J t \_296-'2024

10. In the light of the same, this application is r:rllowed Sri K. Suiarshan. Retired District Judge, H.No.8-7-9://85/P- II/74, Agriculturt Colony, Hasthinapuram, Hyderabad, 500086 (Ph.No.986r54 157120) is appointed as an. arbitrator to adjudicate the disputes between the applicarrt and respondents, Party shall appear before the arbitrator", along with copy of this order. Liberty is granted to resgrondent No.2 to rarse afcresaid two contentions i.e., signaturtr of sole proprietor of re spondent No.2 was forged and fabricat-ed and that the applicant has not complied with the requirements as conta:ned in Section 2l of the Arbitraticn and Conciliation Ar:t before the arbitrator and arbitratt rr shall adjudicate the aforesaid two contentions as preliminary issues. However, arbitrator shall proceed with the .{rbitral proceedings in z ccordance with law. No costs. As a sequel, pending rniscellirneous petitions, if any, shall stand closed. //TRUE COPY// Sd/- K. SRINIVASA RAO JOINT REGISTRAR To, SECTION OFFICER Sri K Sudarshan, Retired District Judge, H.No.8-7-97l85/p-ll/7 4, Agricutture Colorry, Hasthinapuram, Hyderabad, 500086 (ph. No.9866 41S7rO) (By Special Mess,enger) (Along with a Copy of affidavit and material paiers)- M/s. Sahiti Ir fratec Ventures lndia private Limited, Rep. by ts partner b. Parvati, W/o L Lakshmi Narayana, A registered partneiship-firm having it,s office at Plot to. 1222, #B-2-293lB2tN 1222tF 4, Founh flooi, Saniti Sreinta, Road no. 36, Jubilee Hills, Hyderabad, Telangana-500033 One OC to Sri V. Seetha Rama Avadhani, Advocate IOpUC] 1 2 2 iq:}., - r I i I

4. One CC to Sri T. Bala Mohan Reddy, Advocate [OpUb] 5. Two CD Copies , HIGH COUF|T DATED:101Ct312025 \ \ l-.a'. \) ' . E St;l 14. \ t I Q4 ( 21I{llY M F () ORDER ARBAPPL.t'1o.296 of 2024 i: l,; \'t\ ,, ALLOWING THE ARBITRATION APPLICATI,CN 7 /, I ( ,,t ,/l- ,/l //, ./ -) /,. < )