HONOURABLE SRI JUSTICE B. VIJAYSEN REDDY ARBITRATION APPLICATION No.306 OF 2024 ORDER : (ORAL)

This application is filed seeking to appoint a sole arbitrator for resolving the disputes between the applicant and the respondent arising out of the Development Agreement-cum-General Power of Attorney (DAGPA) dated 04.03.2006.

2. It is claimed that the applicant is the owner of the plot admeasuring 2843 square yards in Survey No.70, situated at Lingampally Village, Ranga Reddy District. The respondent is involved in real estate business and entered into the development agreement dated 04.03.2006 with the applicant on the pretext of developing the subject property. The parties agreed for various terms and conditions under the DAGPA. The case of the applicant is that even after seventeen (17) years from the date of DAGPA, the respondent has not taken any steps to develop the subject property. The respondent has not obtained necessary permission and clearances from the various authorities and has not acted upon the DAGPA. Thus, the said agreement is deemed to be cancelled, as such, the applicant issued notice dated 18.09.2018 to the respondent to cancel the DAGPA. The said notice was served on the respondent through registered post on 24.09.2018; the respondent did not give any reply to the said notice. Thereafter, the applicant filed a suit in O.S. No.1449 of 2018 before the learned XV Additional District and Sessions Judge-cum-XV Additional Metropolitan Sessions Judge- cum-II Additional Family Judge, Ranga Reddy District, at Kukatpally (for short ‘trial Court’) for declaration of the DAGPA as null and void. Respondent filed an application under Order VII Rule 11 of the C.P.C. before the trial Court for rejecting the plaint filed by the applicant as the DAGPA contains arbitration clause; the plaint filed by the applicant was rejected.

3. It is stated that due to COVID-19 pandemic, the applicant did not take immediate steps to issue arbitration notice to the respondent. Later, after COVID-19 period ended, the applicant issued legal notice dated 17.08.2023 to the respondent for appointment of an arbitrator in terms of Clause 19(a) of the DAGPA. As there was no response from the respondent, the instant application is filed.

4. On perusal of the material on record, Mr. V. Naga Narsimha, learned counsel, informed this Court on 09.04.2025 that he has instructions to file Vakalat on behalf of the respondent, however, no Vakalat has been filed and there is no appearance on behalf of the respondent.

5. As there is no contest from respondent, this application is allowed appointing Sri K. Sanga Reddy, District Judge (Retired), H.No.1-112/SY-63/RAE/711, Rasun - Ace Elysian, Hanuman Nagar, Raghavendra Colony, Kondapur, Rangareddy District, Hyderabad - Telangana – 500084, as Arbitrator to adjudicate the claims and disputes between the parties and to pass an award in accordance with law. The parties are at liberty to raise all factual and legal grounds in support of their respective claims. The learned Arbitrator is entitled to fees as per the rates specified in the Fourth Schedule to the Act 1996 inserted by the Arbitration and Conciliation (Amendment) Act 2015, No.3 of 2016, with effect from 23.10.2015, which shall be borne by both parties in equal shares.

As a sequel thereto, miscellaneous applications, if any, pending in this application stand closed.

______________________ B. VIJAYSEN REDDY, J April 23, 2025 RRK