ORDER:

This petition is filed by the petitioner s under Section 11(6)(a) of the Arbitration and Conciliation Act, 1996 r/w Rules and Scheme under the Act for getting the disputes resolved between the parties as per Clause 7 of the Memorandum of Understanding dated 01.10.2009.

2. Learned counsel for the petitioner submitted that the petitioner was the core promoter and founder Director of Subhodaya Chemicals Limited (Subhodaya Chemicals Pvt. Ltd). The respondents 1, 3 and 4 are co-promoters of the 2nd Respondent Company. Petitioner has given his personal guarantees and offered family properties as collateral security to financial institutions and Banks, thereby extending loans to the business entity for its establishment and survival. The 1st respondent and petitioner has entered into a bilateral agreement by way of an MOU dated 20.07.2005 with the petitioner promising that the promoter Directors, including the petitioner will divest themselves of their equity and consideration will be paid before December 2005 and promised to release the collateral securities offered by the petitioner and also has taken the responsibility of relieving him from all personal guarantees given by the petitioner and thereafter, the amount due will incur interest at 15% p.a. In the MOU dated 01.10.2005 the 1st respondent has agreed that the petitioner will continue as a whole-time director of the company for a period of 5 years from the date of MoU and in the meantime, the first respondent will have to relieve the petitioner from all the personal guarantee and collateral securities given to financial institutions.

3. On 11.03.2006, the 1st respondent has entered into an MOU with the petitioner to the effect that 33% of the equity held by the Petitioner in the business entity shall be transferred on consent only, after the personal guarantees and securities given by him, his friends and relatives will be released and interest at 15% will be paid with effect from 31.12.2005 on the consideration which is to be transferred. Again on 11.03.2006 the 1st respondent entered into an MOU agreeing to discharge the obligation under earlier MOU dated 20.07.2005. Once again on 01.10.2009 1st respondent entered into an MOU with the petitioner in continuation with the earlier MOU wherein he promised to undertake the total liabilities of the company and to relieve the petitioner from personal guarantees given by him. As per the MOU the petitioner agreed to transfer 12,50,225 shares constituting 25% of the total equity share capital in respondent favour. And also transfer of remaining 4,00,075 shares for the price of Rs.10/-together with interest at 15% per annum from 31.12.2005, subject to fulfillment of earlier agreed conditions.

4. It is submitted that on 25.10.2014, the first respondent once again agreed to honour the earlier MOU with an understanding the share of the petitioner and his family members will be transferred as per the entire MOU. It is also agreed the title deeds of the petitioner will be released from Punjab National Bank and petitioner will be considered to be a director up to 30.09.2017 with remuneration of Rs.50,000/- per month and to pay interest on Rs.20,00,000/. From the earlier period of MOU to settle the issue of Natiya Palam site into the petitioner with priority before selecting other. It is also agreed to relieve the petitioner office personal guarantees given to Punjab National Bank. Till date, the first respondent has not complied with any of the conditions.

5. Having no other way, the petitioner has invoked clause 7 of MOU dated 1.10.2009 for resolution of the disputes through arbitration as per the provisions of Arbitration and Conciliation Act, 1996 and got issued a legal notice dated 30.09.2020 to the respondents making some demands. And in the said notice the petitioner also stated that he appointed Mr.K.Sanjeevarao Naidu, Retired District Judge as his Arbitrator and the respondents were called upon to accept the appointment of Arbitra