Dawn Projects Pvt. Ltd. Vs Government of Andhra Pradesh

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 agreement, dated 07.06.2006, to an arbitrator for adjudication.

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Despite the fact that as many as seven opportunities to file a response to the present application, the same have not been filed by the respondents.

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The disputes as alleged by the applicant in the application therefore can be stated to be existing. According to the agreement executed between the parties and in particular Clause 22 of the same, it was clearly envisaged that in the event of disputes between the parties, the same could

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be resolved by mutual efforts and discussions and in case no solution was found within 60 days of the reference to the committee, the disputes would be referred to an arbitrator.

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Apart from the fact that Clause 22 of the agreement envisages an informal dispute resolution mechanism, it also clearly envisages that in case no acceptable solution to the dispute is found, then the dispute shall be referred to arbitration by a sole arbitrator.

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The applicant claims that a notice, dated 06.07.2022, was issued and served upon respondents to constitute an arbitral tribunal comprising of the sole arbitrator. Learned counsel for the respondents does not deny the receipt of the said notice. However, since the notice did not elicit any favourable response from the respondents, the present application has been filed.

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It is stated that, since the disputes have arisen, the same are required to be resolved through the mechanism of arbitration as per the terms of the lease agreement.

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Be that as it may, the present application is allowed. Justice N. Balayogi, former Judge of the High Court of Andhra Pradesh, 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 agreement, dated 07.06.2006, and render the Award within the statutory period. The parties shall be free to file detailed claims and counter-claims before the

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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.

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

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

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Justice N. Balayogi, D.No.8-1-284/A/ME/3, Villa No.3, Plot No.3, Ward No.8, Millennium Exotica, O.U Colony, Shaikpet, Hyderabad, Telangana – 500 032.

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DHIRAJ SINGH THAKUR, CJ

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kbs

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