The Court will appoint a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, when a valid arbitration agreement exists and a clear dispute has been raised between the parties.

ORDER :

The instant Arbitration Application has been filed by the applicant under Section 11(5) & (6) read with 15(2) of the Arbitration and Conciliation Act, 1996 and Rules framed under praying the Court to appoint a sole arbitrator as per the arbitration clause contained in the Warehousing Service Agreement dated 13.05.2018 entered into between the applicant and respondent to resolve the dispute / difference that had arisen between applicant and respondent.

2. Heard Mr. G.V.B. Santosh Kumar, learned counsel for the applicant; and Mr. Vijay B. Paropakari, learned counsel for the respondent.

3. The brief facts leading to filing of instant arbitration application by the applicants is that the applicant-Company is engaged in the business of providing logistics services / solutions in the form of services, viz., express distribution, supply chain solutions, air freight, warehousing and multi-modal transport operations; the respondent, with an intention of availing specialized warehousing services provided by the applicant, had approached the applicant for storage of inventory of goods for monthly compensation payable by the respondent to the applicant- Company; after thorough negotiations, a Warehousing Service Agreement dated 13.05.2018 was entered into between applicant and respondent for a period of two years staring from 13.05.2018 to 13.04.2020.

4. Learned counsel for the applicant-Company submitted that until August, 2020 the respondent duly observe and performed terms of the agreement; thereafter, the respondent consistently delayed payments of monthly compensation from September, 2020 onwards; though several attempts have been made by the applicant-Company in pursuing the respondent to clear the outstanding dues, the respondent failed to clear the dues, thereby an amount of Rs.39,53,651/- fell due to the applicant- Company; despite acknowledging the debts due and payable by respondent, the respondent had failed and neglected to make the payments due to the applicant-Company thereby causing considerable hardship and irreparable financial loss to the applicant-Company; aggrieved, the applicant-Company was constrained to invoke the Arbitration Clause, viz., Clause 20 of the Warehousing Services Agreement dated 13.05.2018; accordingly, a notice dated 05.10.2021 was issued to the respondent to concur to the appoint of a sole arbitrator, viz., Shri G. Gopala Krishna Murthy, Retired District and Sessions Judge; however, the respondent, vide reply notice dated 20.10.2021, denied the appointment of the above Sole Arbitrator by raising false, frivolous and bogus claims.

5. Aggrieved, the instant arbitration application has been filed by the applicant.

6. On 11.03.2022, notice was ordered to the respondent, and the learned counsel appearing on behalf of respondent had entered appearance.

7. Having heard the contentions put forth on either side and on a perusal of the record, and also taking into the consideration the contents of reply notice dated 20.10.2021 given by the respondent to the legal notice dated 05.10.2021 issued by the applicant-Company, there seems to be a clear dispute raised by either parties which needs to be decided in the course of arbitration proceedings by invoking Arbitration Clause (20) contained in the Warehousing Service Agreement dated 13.05.2018 that has been entered into between applicant and respondent. Accordingly, the instant arbitration application stands allowed.

8. Accordingly, this Court appoints Sri M. Rajender, retired District Judge, resident of Villa No.142, Keerthi Richmond Villa, Suncity, Hyderabad – 500 086, as the sole Arbitrator to resolve the dispute between the parties.

9. Needless to state that both parties are at liberty to raise all claims and counter claims before the sole arbitrator who in turn shall conduct the arbitration proceedings in accordance with provisions of the Act. The venue of arbitration shall be decided mutually by the parties subject to consultation and agreement of