THE HONOURABLE SRI JUSTICE K. LAKSHMAN ARBITRATION APPLICATON No.216 OF 2022

ORDER

The present Arbitration Application is filed under Section 11 (5)

and (6) of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the Act’) for appointment of arbitrator to resolve the disputes between the parties.

2. Heard Ms. Pallavi, learned counsel representing Sri R.Sushanth Reddy, learned counsel for the Applicant. There is no representation on behalf of the respondent.

3. The Applicant and respondent are private limited companies.

They have entered into a Master Services Agreement dated 04.12.2019 on specific terms. As per the said agreement, the Applicant fulfilled all its obligations. Thereafter, the respondent failed to make full outstanding payment of Rs.11,54,040/- to the Applicant. The Applicant issued notice dated 13.07.2020 to the respondent demanding payment of said amount. But the respondent did not respond. The Applicant invoking Clause No.11.16 of the said agreement, had issued notice dated 22.09.2022 to the respondent for appointment of Sri D.Narender Naik as sole Arbitrator to resolve the disputes between them. The said notice was sent to the respondent through registered post with acknowledgment due. The same was returned unserved with postal endorsement ‘unclaimed’. The postal cover with an endorsement ‘unclaimed’ is filed. Therefore, the Applicant herein has filed the present application.

4. As stated supra, the Applicant herein and respondent have entered into the Master Services Agreement, dated 04.12.2019 on the specific terms and conditions. Clause No.11.16 of the said agreement deals with arbitration and the same is extracted below:-

Governing Law:- In case the issue raised or submitted to the facilitator by the Client under sub-section (a) remains unresolved or the Client is unsatisfied by the resolution provided by the facilitator, the dispute shall be resolved by the way of arbitration in accordance with the Arbitration and Conciliation Act, 1996 and the rules made thereunder, and the same shall be referred to a sole arbitrator to be appointed/nominated by Urban Dart. The Arbitration proceedings shall be conducted in English and the place and seat of arbitration shall be Hyderabad, India.

5. The Applicant has specifically mentioned the details of the invoices, dates and amounts etc., in paragraph No.5 of the notice dated 22.09.2022. Respondents refused to receive the said notice and in proof of the same, the Applicant has filed returned postal cover with an endorsement ‘Unclaimed’. The respondent even not received the notice sent by this Court and the notice sent by the learned counsel for the petitioner in the present arbitration application.

6. As discussed supra, there are disputes between the Applicant and respondent and the details of the disputes are specifically mentioned by the Applicant in the aforesaid notice. The same are to be resolved by way of appointment of the Arbitrator by this Court. Therefore, without prejudice to any defences available to the parties, this Court deems it appropriate to refer the matter to arbitration.

7. In light of the aforesaid discussion, the present arbitration application is allowed. Accordingly, Sri N. Shankaraiah, Retired District Judge, is appointed as sole Arbitrator to resolve the disputes between the parties.

As a sequel, the miscellaneous Petitions, pending if any, shall stand closed.

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K. LAKSHMAN, J Date: 20.10.2023 VVR.