Arbitration clauses in contracts ensure dispute resolution through appointed Arbitrators as per established rules.

O R D E R

Petitioner executed an agreement for lease and licence with the respondent on 17.11.2022. The agreement was for operating a modified scrapped bus body as a stall “shop on wheels” at the KSRTC bus station. The licence was initially for a period of one year, extendable upto 4 years subject to the satisfaction of the licensor. According to the petitioner, he paid agreed licence fee and remitted interest free security deposit inclusive of EMD strictly in accordance with the contractual terms. Clause 36 of Annexure A1 provides for arbitration in case of disputes arising between the parties.

2. Disputes later arose between the parties and Annexure A2 notice was issued by the respondent to the petitioner on 03.10.2025 raising certain demands. According to the petitioner, the demands are unsustainable and contrary to to the terms of the agreement. Therefore the petitioner issued Annexure A3 on 21.10.2025 invoking the arbitration clause. As there was no response, this arbitration request was filed.

3. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondent Corporation.

4. On hearing the parties, I am of the view that serious disputes have been arisen between them pertaining to the terms of Annexure A1 agreement. There is no dispute that Annexure A1 contains a valid arbitration clause. Both sides submitted that the arbitration may be conducted at Thiruvananthapuram.

5. Therefore I am of the view that this arbitration request can be allowed. In the result, the following directions are issued:

1. The Kerala High Court Arbitration Centre is directed to nominate an Arbitrator from Panel-V, preferably from Thiruvananthapuram, as the sole Arbitrator to resolve the disputes that have arisen between the petitioner and the respondents under Annexure A1 Agreement.

2. The learned Arbitrator may entertain all issues between the parties in connection with the said Agreements, including questions of jurisdiction and limitation, if any, raised by the parties. All contentions of the parties are left open and they are at liberty to raise their claims and counterclaims, if any, before the learned Arbitrator, in accordance with law.

3. The Registry shall communicate the substance of this order to the Kerala High Court Arbitration Centre within ten days and the Centre shall inform the learned Arbitrator within a further period of one week and shall obtain duly signed Form 3 as required under Rule 20(4) of the Kerala High Court (Arbitration Centre) Rules, 2025 and forward the same to this Court.

4. Upon receipt of the Form 3, the Registry shall issue a certified copy of this order with a copy of the Form 3 appended to the Kerala High Court Arbitration Centre. The original of the Disclosure Statement shall be retained by the Kerala High Court Arbitration Centre.

5. The fees of the learned Arbitrator of the Kerala High Court Arbitration Centre shall be governed by Rule 28 of the Kerala High Court (Arbitration Centre) Rules, 2025. The manner in which the fees and costs payable by the parties shall be governed by Rule 27 of the Kerala High Court (Arbitration Centre)

Rules, 2025.

6. If the learned Arbitrator needs the assistance of an expert, then he is at liberty to seek such assistance in the course of the arbitration proceedings.

Sd/-