M/S Royaloak Infrastructure LLP Vs Mr Mahal Babajan — Arbitration | Andhra Pradesh HC (2025)

M/S Royaloak Infrastructure LLP Vs Mr Mahal Babajan — Arbitration | Andhra Pradesh HC (2025)

What the court decided

AI extract

Outcome

Mr. C. V. R. Rudra Prasad appointed as Arbitrator to adjudicate disputes arising out of and in connection with the lease deed dated 12.10.2021 and render the award within the statutory period; parties free to file detailed claims and counter-claims; arbitrator entitled to fee per Fourth Schedule of the Arbitration and Conciliation Act, 1996; no costs; connected miscellaneous applications closed.

Issue for consideration

Whether the disputes arising out of and in connection with the lease deed dated 12.10.2021 should be referred to an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. +1 more

Court's answer

In view of the fact that the disputes have arisen, the same are required to be resolved through the agreed terms and conditions of the lease deed; the notice invoking arbitration dated 15.12.2024 was received by the respondent and replied by notice dated 27.01.2025.

Ratio / Principle

It is not denied that disputes have arisen between the parties; the factum of the existence of the disputes is evident from the pleadings of the parties.

Key takeaways

The existence of an arbitration clause in the agreement, i.e. clause 32 of the lease agreement pertaining to dispute resolution, is not denied; it envisages resolution of disputes relating to the lease deed through arbitration by a sole arbitrator.ratio¶14
The present application is allowed and Mr. C. V. R. Rudra Prasad, learned Advocate, is appointed as Arbitrator to adjudicate the disputes arising out of and in connection with the lease deed dated 12.10.2021 and render the award within the statutory period.ratio¶19

Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 — S.11 application — lease deed dated 12.10.2021 — clause 32 arbitration clause providing for sole arbitrator — existence of disputes not denied and evident from pleadings — notice invoking arbitration dated 15.12.2024 served and replied on 27.01.2025 — Chief Justice allows application and appoints Mr. C. V. R. Rudra Prasad as Arbitrator to decide disputes and render award within statutory period — parties free to file claims and counter-claims — arbitrator's fee per Fourth Schedule — no costs.

APHC010189862025

IN THE HIGH COURT OF ANDHRA PRADESH Bench Sr.No:-23 [3441] AT AMARAVATI

ARBITRATION APPLICATION NO: 18 of 2025

M/s. Royaloak Infrastructure LLP. Vs.

...Applicant

Mr. Mahal Babajan

...Respondent

Advocate for Applicant : Mr. A. Bhuvan Sunder Reddy Advocate for Respondent : Mr. Suresh Kumar Reddy Kalava

CORAM : THE CHIEF JUSTICE DHIRAJ SINGH THAKUR

DATE : 10th October 2025

P C :

This is an application filed under Section 11 of the Arbitration and Conciliation Act, 1996, for referring the disputes arising out of and in connection with the lease deed, dated 12.10.2021, to an arbitrator for adjudication.

It is not denied that disputes have arisen between the parties. The factum of the existence of the disputes is evident from the pleadings of the parties. The existence of an arbitration clause in the agreement i.e. clause 32 of the lease agreement pertaining to dispute resolution is also not denied which envisages that in case any dispute or difference arising out of or relating to the lease deed, the same was to be resolved through the arbitration by a sole arbitrator.

From the record, it appears that a notice invoking arbitration, dated 15.12.2024, was served upon the respondent, which was not only

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received by respondent but also replied by virtue of reply notice, dated 27.01.2025. In view of the fact that the disputes have arisen, the same are required to be resolved through the agreed terms and conditions of the lease deed.

Be that as it may, the present application is allowed. Mr. C. V. R. Rudra Prasad, learned Advocate, is appointed as an Arbitrator, who shall enter upon the reference and adjudicate upon the disputes arising out of and in connection with the lease deed, dated 12.10.2021, and render the Award within the statutory period. The parties shall be free to file detailed claims and counter-claims before the learned Arbitrator. The learned Arbitrator shall be entitled to claim his fee in terms of the provisions of the Fourth Schedule of the Arbitration and Conciliation Act, 1996. No costs.

Consequently, connected pending miscellaneous applications, if any, shall stand closed.

A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below:

Mr. C. V. R. Rudra Prasad, #007, Anuraga Apartment, Vivekananda Street, Opp. Dairy Towers, Gurunanak Colony, Vijayawada, Ph. No. 98481 59643.

DHIRAJ SINGH THAKUR, CJ

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HON’BLE MR. JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE

Arbitration Application No.18 of 2025

Dt: 10.10.2025

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