The High Court · 2025

Represented by its Managing Director Also at Villa No. 336. Sy. No.167. Vishal Sanjeevini, E- city road. Srinagar Village, Maheshwaram Mandal. Telangana- 501359 ...RESPONDENT Arbitration Application for request to appoint an Arbitrator under section 11(5) & (6) of the Arbitration and Conciliation Act '1996 read with Scheme for Appointment of Arbitrator 1996, praying that the Hon'ble Court may be pleased to appoint a sole Arbitrator, to adjudicate the Claims and disputes between the Applicants and the Respondents pursuant to the Warehouse Service Provider Agreement dated 2111112017 to award the costs of application. Counsel for the Petitioner: SRl. RAVITEJA AKELLA Counsel forthe Respondent: None Appeared The Court made the following: ORDER 4 ;lFii.-- THE HONOI]RABLE SRI JUSTICE B. VIJAYSEN REDDY ARBITRATION APPLICA TION No.307 OF 2024 ORDER:(OI{.'\L) This application is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, (for short 'the Arbitration Act 1996') for appointing, r;ole arbitrator to resolve the dispute arising tretween applicant ancl respondent out of Warehouse Serwice F'rovider Agreement (for short'Agreement') dated 21.11'2017 ' 2 Heard lMr. A. Raviteja, learned counsel for the applicant and perused the mareriai on record

3. It is submitted that respondent is a super stocl ist and distributor of Patanjali Ayrrved Limited for the States of Te:langana and Andhra P'radesh. The applicant is engaged in business of supply chain managr:rnent, warehcusing, logistics, stock management and other allied seryices. Respondent has engaged the ser-vice s of the applicant fol carrying out warehousing and stock management activities. .Accordingly, the Agreement dated 21'11'2{117 was entered into by the applicant and respondent. The applicant 2 rendered services as per the terms and conditions of the Agreement and also raised invoices from time to time. Respondent has made few payments; however, he started withholding some payments without giving any intimation to the applicant. On enquiry made by the applicant, respondent informed that the said invoices were put on hold as the Employees State Insurance (ESI) and provident Fund (PF) challans pertaining to the employees/workmen engaged in the warehouse were not submitted in the proper format.

4. It is submitted that the applicant had been raising invoices since inception of the Agreement by attaching ESI and pF challan to the invoices and respondent has not raised any objections. Despite submitting all the relevant documents, respondent has kept payments on hold and an amount of Rs.g,15,000/- (Rupees eight lakhs hfteen thousand only) was payable by respondent to the applicant which has been pending since November 201 g.

5. It is submitted that the applicant requested respondent to release the pending dues of Rs.31,44,7271- for the services rendered from January 2021 to March 202r which also includes the earlier 3 dues fbr the year 20 1 8- 19. However, respondent has made on [y part payment of the total due. The Agreement was entered into between the applicant a'iid respondent for a period of.three (3) years and the same was not extended during COVID- 19 pandemic and imposition of lockdown in the year 2020. Subsequently, the applica,nt has rendered seryices to respondent in the absence of Agreeme'nt and non-paymenl. ol amount to a tune of Rs'8,15'000/-' It is subrnitted that the applicant addressed an e-mail dated

6. 12.01.2023 tbr execution of fresh agreement, clearance of pending duesandhi}leinthesalaryStructureoftheemployeesand respondent agi-eed to grant a hike of l7o/o over the existing Cost to Company (Cl-C) from the month of April 2022 and the same was conhrmed b1. the respondent by e-mail dated 08'03'202']' The respondent has also entered agreement with ltzl/s' Acen Prctectors private Limit,:d, a sister concem of the applicant and respondent has also withhotd the payments of its sister concem' It is sutrmitted that apart from of the amount Rs'8'15'000/-

7. payable by respondent towardsdees for the year 2018-19' it is also .':.'- 4 liable to pay dues for the months of March and April 2022. Intotal, the respondent liable to pay an amount of Rs.l5,l3,0l6l_ (Rupees fifteen lakhs thirteen thousand and sixteen only). The applicant has issued legal/demand notice dated 11.07.2024 to respondent to clear the pending amount of Rs.15,13,061/_ along with interest @ 24% p.a. within a period of seven (7) days from the date of receipt of said notrce.

8. It is submitted that as the above notice was returned, the applicant has sent another notice to the alternate address and the notice was duly served on the respondent. Thereafter,.as there was no response from the respondent, the applicant issued arbitration notice dated 25.08.2024 to the respondent as per Clause _16 of the Agreement for referring the dispute to Mr. N. Shakariah, District Judge (Retired), for resolving the disputes between the parties. Even after the receipt of arbitration notice, respondent did not come forward, hence, the applicant has filed the present arbitration application. 5 g. It is sucrnitted that pursuant to the order dated 03'(ll'2025 passed by this (lourt, notice was sent to respondent, which has been served, and rn:rno of proof of service was filed vide tl'S'R' I{o'9391 of 2025 dated 29.01 .2025.

10. The applicant and respondent are parties to the Agreement dated 21.1 L 2017 and Clause - 16 therein provides for resolution of disputes arisrng between the applicant and respondent through arbitration. The applicant invoked arbitration clause by issuing notice dated 25.08.2024- Thus, there is compliance of plocedure under SectiorL . 1 of the Arbitration Act 1996' I I . As thert: is no contest from the respondent, the arbitration application is; allowed appointing Sri N. Shankariah' District Judge (Retired). H.No.l 1-9-256, Plot No.110, Road No 3, Street No'16' Vijayapuri Colony, Kothapet, R.K. Puram, Ranga Reddy l)istrict - 500016, as l.rbitrator to adjudicate the claims and disputes between the parties arrd to pass an award in accordance with law. TlLe parties are at liberty t,r raise all factual and legal grounds in support of their respective claims. I l 6

12. The leamed Arbitrator is entitled to fees as per the rates specified in the Fourth Schedule of the Act 1996, inserted by Act 3 of 2016 with effect tuom 23.10.2015, which shall be bome by both parlies in equal shares. As a sequel thereto, miscellaneous applications, ifany, pending in the arbitration application stand closed. rP I //TRUE COPY// Sd/- M. VIJAYA BHASKER JOINT REGISTRAR To SECTION OFFICER 1' Sri N.shankariah. District Judge^(Retired), H.No.11-9-256, prot No.110. Roacr No.3, Street No 16 V^ijayapurl cbronvll(bit"pLt, n.x.prram, Ranga iReddy Districr s0o016. t av s'pdJ' rr,ress;d;i i"''"' I Along with the Copy of Material Affidavit and papers ' t}*:#is".r 5i?1s'i,:,} M8xfil 0:?fl,i,:ftfi3;,'l fixh*fl; x,,H:fl,"i,: 3. One CC to SRt. RAVTTEJA AKELLA, Advocate tOpUCI 4. Two CD Cooies ] Pr,?R \q_ .{r.- HIGH COURT DATED: 2710212025 ORDER {, ARBAPPL.No.307 of 2024 { (t o He S rAr e' 1 i f, 21 fiAn 2[15 I 1" i r'."\;- o Fcr + ALLOWING THE ARBITRATION APPLICATION \9 i€+ &"