Judgment

R.V. Raveendran, J.

The respondent is a company incorporated on 9.4.2003 under the Companies Act, 1956. The appellant (Andhra Pradesh Tourism Development Corporation Ltd., for short 'APTDC') is a "government company" within the meaning of that expression in section 617 of the Companies Act, 1956.

2. According to the respondent, the parties had entered into two agreement in regard to a property known as Hill View Guest House, Alipiri, Tirupathi, measuring 1.08 acres. The first was a lease agreement under which APTDC granted a lease of the said property to the respondent for a term of 33 years; and the second was a development and management agreement under which APTDC entrusted to the respondent, the development of a Three-Star Hotel in Hill View Guest House property on construction, operation and management basis. According to the respondent, both agreements contained a provision for disputes resolution (clause 17 of the lease agreement and Article 18 of the management agreement) providing that in the event of disputes, best efforts shall be made to resolve them by mutual discussions, amicably; and in the event of the parties not finding an acceptable solution to the dispu