THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH ARBITRATION APPLICATION No. 73 of 2025

ORDER:

Mr. M. Naga Deepak, learned counsel appears for applicant.

2. By order dated 24.10.2025, this Court proposed to appoint Sri M. Santha Raju, a former District Judge, as an independent Arbitrator to adjudicate the dispute between the parties. The said order dated 24.10.2025 is extracted hereunder for easy reference:

“Heard Sri M. Naga Deepak, learned counsel appears for the applicant.

Despite service of notice on the respondents, as mentioned in the proof of service memo dated 19.05.2025, the respondents have not entered appearance.

The applicant has invoked the arbitration clause under the Memorandum Of Understanding (MOU) dated 28.07.2016 entered with the respondents whereunder the respondents undertook to provide multi screen facility for use of cinema exhibition, cafe, fine dining, kitchens, food & beverage counters, advertisement, marketing, promotional activities etc., for consideration of Rs.25,00,000/-. However, the respondents failed to fulfill the contractual obligation and kept extending of promises and assurances to do so. The applicant invoked the arbitration clause provided under MOU vide notice dated 22.10.2025 proposing the name of a sole arbitrator to adjudicate the dispute between the parties. However, no reply was furnished. Therefore, the applicant invoked the jurisdiction of this Court under Section 11 (5) & (6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) for appointment of an independent arbitrator.

Learned counsel for the applicant submits that MOU has been entered for consideration which provides for dispute resolution through arbitration at Hyderabad.

Since the respondents have failed to fulfill the obligations under MOU, the applicant has been left with no other option except to invoke the arbitration clause for appointment of a sole arbitrator to decide the dispute between the parties. It is submitted that the respondents neither replied to their notice nor appeared before this Court despite valid service of notice on them. Therefore, this Court may proceed with the appointment of a sole arbitrator to decide the dispute between the parties.

I have considered the submissions of the learned counsel for the applicant. In view of MOU entered between the parties for setting up multi screen facility for use of cinema exhibition, promotional activities etc., and since the respondents have allegedly failed to perform their contractual obligation, the arbitration clause has been invoked by the applicant for adjudication of the disputes between the parties. Therefore, I am satisfied that the applicant has made out a case for appointment of a sole arbitrator.

Accordingly, this Court is proposed to appoint Sri M. Santha Raju, retired District Judge (Resident of Plot No.32/39, A & B, Anu Sri Heights, Flat No.101, Sardar Patel Nagar, Kukatpally, Hyderabad, Mobile No: 9676677229 & Phone No:040 40061886) as sole arbitrator to adjudicate the dispute between the parties. The proposed Arbitrator is requested to submit his consent and a declaration in terms of Section 12(1) of the Act read with Schedule VI of the Act.

Registry is directed to communicate this order to the proposed Arbitrator.

The matter be listed after three (3) weeks with the response, if any, of the proposed Arbitrator.”

3. The proposed Arbitrator has submitted his consent along with a declaration under Section 12(1) read with Schedule VI of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’), vide letter dated 10.11.2025.

4. Learned counsel for the applicant, therefore, submits that appointment of the proposed Arbitrator may be confirmed.

5. In that view of the matter, I hereby appoint Sri M. Santha Raju, retired District Judge (Resident of Plot No.32/39, A & B, Anu Sri Heights, Flat No.101, Sardar Patel Nagar, Kukatpally, Hyderabad, Mobile No: 9676677229 & Phone No:040 40061886), to act as an independent Arbitrator in respect of t