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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K.LAKSHMAN
Kalyan Constructions – Appellant
Versus
Madhubasi Vijaya Saradhi – Respondent
ORDER :
K. Lakshman, J.
Heard Mr. K. Ujwal Babu, learned counsel representing Mr. Madiraju Prabhakar Rao, learned counsel for the applicant and Mr. Mr. K. Mohan, learned counsel for the respondent Nos.1 to 4 and 7. Despite service of notice, none appeared for respondent No.5. It is brought to the notice of this Court that respondent No.6 is no more.
2. The present Arbitration Application is filed under Section- 11 (6) of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act, 1996’) for appointment of an arbitrator to resolve the disputes between the parties.
3. CONTENTIONS OF THE APPLICANT
i) Applicant is in the real-estate business at Hyderabad and other places.
ii) Respondent Nos.1 and 2 approached the applicant and informed it that they are the absolute owners and possessors of Plot bearing Nos.47 and 48, admeasuring 300 square yards each, making a total extent of 600 square yards in Survey Nos.13 and 14, situated at Ammuguda Village, Valluvar Nagar under Kapra Municipality, Malkajgiri Mandal, presently Medchal – Malkajgiri District by virtue of two registered sale deeds bearing document Nos.5710 and 5711 of 1998, both dated 09.12.1998.
iii) Respondent Nos.1 and 2 approached
An arbitration application is unenforceable when filed after significant delay and in acknowledgment of prior cancellation of the agreement, thereby lacking an arbitrable dispute.
The court emphasized the importance of invoking arbitration within a reasonable time and held that delay in invoking the arbitration clause can render the application time-barred.
The court ruled that a registered Development Agreement-cum-General Power of Attorney can only be cancelled by another registered document, and unilateral cancellation is impermissible under law.
The court affirmed that an arbitration agreement can be enforced despite issues of insufficient stamping, and clarified the applicable limitation period for arbitration applications.
The existence of ongoing disputes under a Joint Development Agreement validates the invocation of arbitration clauses despite assertions of limitation, confirming the agreement's subsistence.
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