Allowed

National Agricultural Co-Op. v. M/s Sri Pattabhi Rama Traders

Telangana HC24 Apr 2013ARBAPPL/51/2012

Case brief

AI extract

What is this about?

Court allowed an application under Section 11 of the Arbitration Act to appoint an independent arbitrator. The dispute concerned payment of interest on delayed payments under a supply contract. The respondent contested arbitrability, but the court held the dispute was arbitrable under the MOU clause and appointed a retired high court judge.

What did the court decide?

Appointment of Sri Justice A. Hanumanthu as the arbitrator.

National Agricultural Co-Op. Vs M/s Sri Pattabhi Rama Traders — Arbitration | Telangana HC (2013)

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HON'BLE SRI JUSTICE N.R.L. NAGESWARA RAO

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ARBITRATION APPLICATION No. 51 of 2012

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ORDER:

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Heard both sides.

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This Arbitration Application was filed under Section 11(5) & (6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) for appointment of an arbitrator since the dispute has arisen with regard to the memorandum of understanding dated 21.3.2005 entered into between the petitioner and the respondent herein. The contract was for supply of paddy of different varieties and the dispute raised by the petitioner is with regard to the payment of interest on the delayed payment. The claim is disputed by the respondent, as the counsel for the respondent contends for the payment of interest even if there is any dispute, it is not the subject matter of the arbitration and therefore, the appointment of an arbitrator does not arise.

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As can be seen from the Clause 15 of the agreement of the memorandum of understanding, in case of any dispute with regard to the interpretation or any clause of the agreement or any subject touching the present agreement, the matter shall be referred to the arbitrator who is the Managing Director of the NAFED, New Delhi or their nominee.

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The dispute touching on the agreement is as to whether the petitioner is entitled to avail interest over the delayed payments. Consequently, the dispute is arbitrable dispute as per the memorandum of understanding and since the respondent has not accepted for arbitration and did not name the arbitrator and on the other hand, denying the arbitrable dispute, I feel it is necessary to appoint an independent arbitrator.

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In view of the above circumstances, Sri Justice A. Hanumanthu, retired Judge of the High Court of Andhra Pradesh, is appointed as an arbitrator and he shall be paid fee etc., as fixed by him.

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Accordingly, the Arbitration Application is allowed.

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_____________________________ N.R.L. NAGESWARA RAO, J

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Dated: 24.04.2013 KA

National Agricultural Co-Op. v. M/s Sri Pattabhi Rama Traders

Case brief

What is this about?

What did the court decide?

National Agricultural Co-Op. v. M/s Sri Pattabhi Rama Traders

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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