M/S. Dockware Global Logistics Private ... vs Mr. Burma Chakrapani

Citation : 2024 Latest Caselaw 2334 Tel
Judgement Date : 21 June, 2024

Telangana High Court

M/S. Dockware Global Logistics Private ... vs Mr. Burma Chakrapani on 21 June, 2024

Author: Chief Justice

Bench: Chief Justice

     THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE

        ARBITRATION APPLICATION No.78 of 2024

ORDER:

Mr. J. Prabhakar, learned Senior Counsel represents Ms. D. Venkata Padmaja, learned counsel for the applicant.

Neither anyone has appeared on behalf of the respondents nor any counter filed on their behalf.

2. This application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act') has been filed seeking appointment of an Arbitrator to adjudicate the dispute between the parties.

3. Admittedly, the parties had entered into Lease Agreement dated 08.09.2021 and Development Agreement dated 07.10.2021. Clauses 12 and 21 of the aforesaid agreements respectively contain arbitration clauses which are extracted below for the facility of reference.

"12. Legal Action and Arbitration In relation to any dispute, claim or differences arising out of a related to this Agreement or breach of it shall;
12.1 First be referred to the authority of each party to the dispute to seek an amicable settlement. Such referral shall be made by written notice from the party claiming the dispute to any party or parties;
CJ 2 A.A.No.78 of 2024 12.2 Thereafter, if the senior authority of each party fail to achieve a settlement of the dispute within 30 days, be settled by arbitration and conciliation Act 1996, [hereinafter referred to as the 'Act'] in force arbitration begins.
12.3 The Arbitral Tribunal shall consist of three arbitrators, within 30 days working days of service by one party to the other of its application for arbitration, which application shall contain that party's nomination as arbitrator, other party shall nominate its arbitrator and so notify the claiming party and within 30 days of the appointment of the second arbitrator, the two arbitrators shall nominate a third arbitrator.
12.4 Any dispute between two parties will be under High Court of Telangana Hyderabad."
"21. DISPUTE RESOLUTION AND ARBITRATION In relation to any dispute, claim or difference arising out of or related to this Agreement or breach of it shall:-
21.1 First be referred to the senior manager(s) of each Party to the dispute to seek an amicable settlement. Such referral shall be made by written notice from the Party claiming the dispute to any other Party or Parties;
21.2 Thereafter, if the senior managers fail to achieve a settlement of the dispute within 01 (one) month (or such longer period as the Parties may agree) of its referral, be settled by arbitration in India. The arbitration shall be conducted pursuant to the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") in force;
21.3 The Arbitral Tribunal shall consist of three arbitrators Within 30 (thirty) working days of service by one party to the other of its application for arbitration, which application CJ 3 A.A.No.78 of 2024 shall contain that party's nomination as arbitrator, the other party shall nominate its arbitrator and so notify the claiming party and, within 30 (thirty) working days of the appointment of the second arbitrator, the two arbitrators shall nominate a third arbitrator;
21.4 In the event that the party-nominated arbitrators fail to agree upon and nominate a third arbitrator within such 30 (thirty) working days, the third arbitrator shall be appointed in pursuance of the Rules. The third arbitrator shall act as chairman of the Arbitral Tribunal. In the event of a failure by either Party to nominate an arbitrator in accordance with this Clause, such arbitrator shall be appointed in accordance with the Act;
21.5 The arbitration award shall be final and binding between the Parties and the judgment of the arbitrator shall be entered into any court of applicable jurisdiction thereof;
21.6 Should a dispute arise under this Agreement, both the Parties shall continue to perform their respective obligations under the terms of this Agreement during the period of time the dispute is being resolved and thereafter, should the agreement continue following resolution of the dispute. Place of arbitration will be Pune, State of Maharashtra. Language of the said arbitral proceedings will be English."

4. Admittedly, the disputes and differences have arisen between the parties in relation to the aforesaid Lease and Development Agreements. The adjudication of the dispute is therefore necessitated by a forum which has been agreed to by the parties under the agreements.

CJ 4 A.A.No.78 of 2024

5. Therefore, Mr. K. Ajitha Simha Rao, a former District Judge (resident of Plot No.30, Gunja Sreenivas Colony, Opp:

Vaishnavi Enclave, Pet Basheerabad, Hyderabad - 500014;
Mobile No.9440128299) is appointed as an Arbitrator to adjudicate the dispute between the parties. The parties shall appear before the Arbitrator, along with a copy of this order, on 13.07.2024 at 11:00 a.m. There upon, the sole arbitrator shall proceed with the arbitral proceedings in accordance with law. It will be open for the applicant to issue notice to the respondents for appearance before the learned Arbitrator.

6. Accordingly, the Arbitration Application is disposed of.

7. Office to communicate a copy of this order to the learned Arbitrator.

Miscellaneous applications, if any pending, shall stand closed. There shall be no order as to costs.

___________________ ALOK ARADHE, CJ st 21 JUNE, 2024.

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