APHC010603832025 IN THE HIGH COURT OF ANDHRA PRADESH Bench Sr.No:-24 AT AMARAVATI [3441]

ARBITRATION APPLICATION NO: 42 of 2025 Varalakshmi Automobiles Private Limited ...Applicant Vs.

IFFCO Tokio General Insurance Company Limited ...Respondent **********

Advocate for Applicant: Mr. T. V. P. Sai Vihari Advocate for Respondent: Mr. Kesavi Kumari Nemala CORAM : T HE CHIEF JUSTICE DHIRAJ SINGH THAKUR DATE : 6^th March, 2026.

P C :

This is an application filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, “the Act of 1996”) seeking the appointment of an arbitrator for the purpose of adjudicating disputes arising out of and in connection with insurance policy issued on 31.12.2022.

2. According to the terms and conditions of the policy, in the event of a dispute between the parties, the same was envisaged to be resolved through the mechanism of arbitration. Clause 10 of the said agreement reads as under:

“10. Arbitration:

If any dispute or difference arises between You and Us regarding the amount of claim to be paid under this policy (liability having been admitted by Us), such difference shall independently of all other questions, be referred to the decision of a sole arbitrator to be appointed in writing by You and Us or if You and We cannot agree upon a single arbitrator within 30 days of either of Us opting for arbitration, the same shall be referred to a panel of three arbitrators comprising of two arbitrators, one to be appointed by each of Us, to the dispute/difference and the third arbitrator to be appointed by such two arbitrators and arbitration shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996.”

3. A notice dated 15.05.2025, invoking the arbitration clause, is stated to have been served upon the respondent. Failure on the part of the respondent to appoint its arbitrator, in terms of the arbitration clause, gave rise to a cause of action for the petitioner to file the present application.

4. Learned counsel for the parties are ad idem that disputes have arisen between the parties which are required to be resolved. Notwithstanding the mechanism prescribed under Clause 10 of the agreement as regards the constitution of a three-member Arbitral Tribunal, it is agreed that the reference can be made to a sole arbitrator, more so, when the amount in dispute is approximately Rupees One Crore.

5. Be that as it may, the present arbitration application is allowed. Dr. Justice V. R. K. Krupa Sagar, former Judge of the High Court of Andhra Pradesh, is appointed as an Arbitrator, who shall enter upon the reference and adjudicate upon the disputes arising out of and in connection with the insurance policy, dated 31.12.2022, and render the Award within the statutory period. The parties shall be free to file detailed claims and counter-claims, before the learned Arbitrator. The learned Arbitrator shall also be entitled to claim the fee in consultation with the parties.

No order as to costs. Pending miscellaneous applications, if any, in this application, shall stand closed.

A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below: Dr. Justice V. R. K. Krupa Sagar, D.No.4-5-3/5, Chaitanya School Backside, Navabharath Nagar, IV Line, First Cross Road, Ring Road, Guntur, Andhra Pradesh - 522006.

Phone: 98487 64234 DHIRAJ SINGH THAKUR, CJ.

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