THE HON’BLE SRI JUSTICE K. LAKSHMAN

ARBITRATION APPLICATION No. 263 of 2024

ORDER:

Heard Sri K. Vijaya Bhaskar Reddy, learned counsel for

applicant and Sri G. Shashidhar Reddy, learned counsel

appearing for respondents.

2. This application is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’), to appoint sole arbitrator for the purpose of adjudication of

disputes between the applicant and respondents.

3. According to the applicant, herself and respondent No.2 have entered into partnership deed dated 02.12.2009 on specific terms and conditions mentioned therein in the name and style of respondent No.1, M/s. Om Sai Vijetha Builders, for doing real estate business. Both the applicant and respondent No.2 are Managing Partners of respondent No.1 firm. Respondent No.2 is not settling the accounts. Thus, there

are disputes between the applicant and respondent No.2 with regard to the constitution of respondent No.1 firm. The same are arbitrable disputes. Therefore, invoking arbitration clause in the partnership deed dated 02.12.2009, she got issued a legal notice dated 13.07.2024 to the respondents with a request to settle the disputes relating to the constitution of respondent No.1 firm and its business activities, or else, she will initiate proceedings under Section 11(6) of the Act. Despite receiving and acknowledging the said notice, respondents did not respond to it. Therefore, she has filed the present Arbitration Application.

4. Whereas, respondents filed counter contending that the present Arbitration Application is barred by limitation. According to them, the applicant got issued a legal notice dated 15.07.2013 to the respondents and others proposing Sri Justice V. Bhasker Rao as sole arbitrator. The respondents have already got issued reply to the said legal notice on 27.07.2013. Thereafter, the applicant has got issued one more notice on 05.09.2013 and the respondents have got issued rejoinder to the said notice also on 23.09.2013. She has waited for 11 long years and got issued a legal notice dated 13.07.2024 to the respondents. The same was sent to the old address of 2^nd respondent. Therefore, the said notice was not served on him.

5. It is further contended by them that respondent No.1 firm has entered into four agreements of sale with regard to certain properties in favour of third parties and they have filed Consumer Complaints, C.C.Nos.128, 129 and 130 of 2015, before the Telangana State Consumer Disputes Redressal Commission, Hyderabad, under Section 17(1)(a)(i) of the Consumer Protection Act, 1986. Vide common order dated 01.05.2023, the Telangana State Consumer Disputes Redressal Commission partly allowed the above said Consumer Complaints. Against the said common order, the applicant herein preferred appeals before the National Consumer Disputes Redressal Commission and the same are pending. She has also filed a suit in O.S.No.2729 of 2019 against the respondents to declare the agreements of sale dated

19.05.2011; 19.03.2011 & 25.06.2011 as void and unenforceable and also for perpetual injunction, and the said suit is posted for trial.

6. Learned counsel for the respondents, on instructions, would submit that the agreements of sale holders have deposited the balance sale consideration as per the aforesaid common order dated 01.05.2023 passed by the Telangana State Consumer Disputes Redressal Commission in the aforesaid Consumer Complaints and to get over from the said order passed by the State Commission, the applicant got issued a legal notice dated 13.07.2024 to the respondents. Therefore, the same is barred by limitation.

7. As discussed supra, the applicant and the respondents entered into a partnership deed dated 02.12.2009 on the specific terms and conditions to do real estate business. 1^st respondent has entered into four (4) agreements of sale with third parties. It has received the advance sale consideration. It failed to receive the balance sale consideration and complete