THE HONOURABLE SRI JUSTICE P. SAM KOSHY Arbitration Application No.240 of 2024

ORDER :

Vide the order, dated 20.06.2025, this Court had ordered for paper publication so far as notice to the respondent is concerned in two local Newspapers i.e., Deccan Herald English Newspaper and Kannada Prabha Kannada Newspaper by mentioning the date of hearing of the application as 18.07.2025.

2. Learned counsel for the applicant submits that on 10.07.2025 itself the proof of service has been filed before the Court bringing on record about the paper publication, inspite of which there does not seem to be any representation made either in person or through a counsel duly engaged by the respondent.

3. In the given factual backdrop, this Court is inclined to proceed further with the matter so far as the request of appointment of an arbitrator is concerned.

4. The contention of the petitioner is that the applicant who owns a hotel by name and style ITC Hotel Kakatiya at Begumpet, Hyderabad. It is said that the respondent desires of having a premises within the Hotel and the respondent reached to the applicant for letting the said premises for running the business of the respondent insofar as selling handicrafts and upon due negotiations, a license deed was executed on 09.10.2019 for running the business in the name and style of “ARTISAN”.

5. The aforementioned license deed which includes payment of license deed as agreed upon in the deed. It is contended by the applicant that this license deed was not paid by the respondent since 2019, inspite of repeated request there is a failure on the part of the respondent in honouring monthly license payment. It was also the contention of the applicant that the applicant had waived the 50% of the deed amount in the peak Covid period. Even that was not honoured by the respondent inspite of repeated request being made.

6. Learned counsel for the applicant submits that down the line, there is an outstanding amount of Rs.16,08,226/- payable by the respondent to the applicant. Learned counsel for the applicant further referred to the clause No.17 of the license deed which refers to the arbitration clause, for ready reference the same is reproduced hereinunder:

Article XVII :ARBITRATION

17.1. In the event of any dispute or difference the matter shall be referred to the sole arbitration of the Arbitrator nominated by the Managing Director of M/s Srinivasa Resorts Limited whatever name called or any person

nominated by him in this behalf.

17.2. The award given by the Arbitrator shall be binding

upon the parties.

17.3. It is specifically agreed by the Licensee that it will have no objection to any such appointment that the Arbitrator so appointed is an employee / representative of the Licensor or he has already expressed views on, for or on any of the matters, in dispute or difference.

17.4. The Arbitrator so appointed shall have the power to extend the time from time to time for making an award. Save as above the said Arbitrator shall act under the provisions of the Arbitration & Conciliation Act 1996. 17.5. All arbitration proceedings shall be conducted at Hyderabad and the courts of Hyderabad alone shall have the jurisdiction on such arbitration."

7. Plain reading of the aforesaid provision of law would clearly spells out that the parties have agreed upon for resolution of disputes, if any, by way of arbitration under the Arbitration and Conciliation Act, 1996.

8. Inspite of the applicant having filed this application under Section 11(6) of the Arbitration and Conciliation Act, 1996 and inspite of best efforts as there was no representation on behalf of the respondent, the service could not be properly effected upon, the paper publication was also done but, even then also, there seems to be no representation on behalf of the respondent. Thus, the applicant prays for allowing of the application in terms of clause No.XVII of the license deed which deals with settlement of disputes, if any, by way of arbitration. In the absence o