Allowed

Church of South India Trust Association v. Aurora Educational Society

Telangana HC26 Sept 2022ARBAPPL/77/2021

Case brief

AI extract

What is this about?

Application for appointment of sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. Court appointed Sri G. Bhoopathi Reddy as sole arbitrator to resolve disputes arising from a registered lease deed regarding non-payment of rent.

What did the court decide?

Sole arbitrator Sri G. Bhoopathi Reddy was appointed; parties directed to bear costs equally; proceedings to be completed within six months.

Church of South India Trust Association Vs Aurora Educational… — Arbitration | Telangana HC (2022)

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[³¹⁶⁷¹

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IN THE HIGH COURT FOR^{THE STATE OF TELANGANA} AT HYDERABAD

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MONDAY, THE TWENTY^{SIXTH DAY OF SEPTEMBER} TWO THOUSAND AND^{TWENTY TWO}

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PRESENT

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THE HONOURABLE SRI JUSTICE^{A.ABHISHEKREDDY}

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ARBITRATION APPLIC^{ATION NO: 77 OF 2021}

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Between:

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Church of South lndia^{TrustAssociation,(Medak Diocese), a Company} inCoroorated under the Companies^{Act, havingits registeredoffice at CSI} Centi", No.S, Whites^{Road, Royapettah, Chennai- 600 0J4:} [ep.by^{its Hon} Treasurer / Presbyter^{(i/c) and 'authorized signatory.Rev.Dr.U. Daniel,having} its office at¹ 0-3-165, Dloiesan^{Office,Secunderabad.}

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...APPLICANT

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AND

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Aurora Educational^{Society,A Society registered under the AndhraPradesh} ' (Telanqana Area) Public - societies 'Registration Act, 1350 Fasli bearing i'fo.ZOfif SaS, hav'ing its^{Registeredoffice at H'No.1-B-168/2/1, Street No'12,} CtriktaOpatty, Hyde-rabad, iep.^{by its General SecretarySri Raja Babu} Nimmatoori.

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The General Secretary,^{Aurora Educational Society,Fl/o 1-8-168/2/1, Street} No. 1 2, ChikkadPallY, HYderabad.

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...RESPONDENTS {e+l^{u'il's e<k"Ytr (z )} Apptication under section^{11 (5) & (6) of the Arbitration and conciliationAct,} 1996 and scheme of^{Appointment of Arbitrators,2006 praying that in the} circumstances stated in the^{affidavit filed therewith, the High court may be} pleased to Appoint sole arbitrator as^per the^{Arbitration clause in the registered} lease/rental deed^{dt.11to2t2o1gbearing Doc.No.616/2019,between the} applicant and the^{respondentsherein and refer for arbitrationto resolvethe} disputesand/ordifferencesthathavearisenbetweentheapplicantandthe respondent No.1^herein.

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This Application coming on for hearing, upon perusing the Application and affidavit filed in support thereof and upon hearing the arguments of Sri J.Prabhakar, Advocate for the Applicant and of Sri Tarun G.Reddy, Advocate for Respondents.

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The Court made the following: ORDER

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THE HON'BLE SRI IUSTICE^{A. ABHISHEKREDDY}

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ARBITRATION APPLICATION^{No.77 0F 202L}

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ORDER:

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This application is filed^{under Section11 (5) and (6) r/w Section L5} (2) of the Arbitration and Conciliation^{Act, 1996 (for short 'the Act'),} seeking appointment of an^Arbitrator.

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It is the case of the applicant-Church^{of South India Trust} Association that it is the absolute^{owner and possessorof the subject} property bearing Municipal^{No.5-8-660, situated atNampally,} Hyderabad. The subject premises^{was taken on rent by the respondents} under a registered rental^{deed dated 11.02.2019. As per the terms of the} said lease, the respondents have to^{pay gross monthly rentals of} Rs.10,50,000/- w.e.f.,0L.07.2019^{and thereafter the rent will be enhanced} @^g% per annum for every^{three years on the existingrent subjectto} certain other conditions including^{a lock-in period of nineyears. Though} the tenancyfleasecame into^{force w.e.f. 01,.07.2019,the respondents have} not paid the rents for the^{months of} July,^{August and September, 2019,} aggregating to Rs.31,50,000/-.Further,^{the respondentshave paid the} rents from October,^{2019 to April, 2020 i.e., only for a period of seven} months at the^{rate of Rs.4,50,000/- per monthas againstthe agreed} rentals of^{Rs.L0,5O,OOO/-per month. Thus, the respondents are due and}

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2 ,q"rq,I ,7r6natin fl pp tuatim No.⁷ 7 of 2 0 Z 1

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Payable^{an amountof Rs.42,00,000/} - towards balance rental hmount for the above said period. It is stated that the officials of the applicant have approached the respondents several times for payment of rents due and vacating the subject premises, but there is no proper response from them. Therefore, the applicant got issued registered legal notice dated 25.03-2021 for final settlement meeting for resolution of the disputes, but the respondents failed to attend the said meeting. Hence, the applicant got issued legal notice dated 14.04.2021 under Section 21. of the Act. Though the respondents have received the said legal notice, they did not come forward to settle the dispute. Thereafter, the representative of the respondents met the office bearers of applican! but, an amicable settlement could not be arrived at between the parties. Hence, the applicant has filed the present Arbitration Application.

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Heard the learned counsel for the applicant and the learned counsel for the respondents. perused the record.

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A perusal of the registered rental deed bearing document No'61'6/2019, dated 11.02.2019 discloses that Clause 18 thereof contains the arbitration clause, which reads as follows:-

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"ln case of any disputes tlrc Landlord and Tenant should. discuss and. soloe tle disputus and tlds meeting is called settrenrcnt nueting. If tlrc dispute is not resoloed in tlrc settleruent nrceting then eitlrcr of tlrcru can approaclt any of the Arbitrator or Court as finnlized. during tlrc settlenrcnt nteeting.,,

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.a"e\t Adittation AryAation^{No.7 7 of 20 21}

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t \

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There is no dispute as to the existence of the arbifration^agreement between the parties. Though the applicant has suggested^{an Arbitrator, it} appears that the said nominee is not acceptable to the^respondents. However, the learned counsel for the respondents^{has fairly stated that} the respondents have no objection for the appointment^{of an Arbitrator} other than the one suggested by the applicant.

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In the aforesaid fact situation, and in view of^{Section10 of the Act,} a sole Arbitrator is required to be appointed. Since^{the parties are not in} agreement as to the identity of the Arbitrator, this^{Court has to take} requisite measure under Section 11(6) of the^{Act to makesuch} appointment.

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In the result, the Arbitration Application is ordered^appointing Sri G. Bhoopathi Reddy, a Retired District ]udge,^{as the sole Arbitratorto} arbitrate on the disputes between the applicant^{and the respondentsand} the said Arbitrator shall enter on^{referenceand proceed with, as enjoined} by the Act. However, it is^{left open to the parties to raise all legally} tenable objections as available^{to them under law before the learned} Arbitrator

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The learned Arbitrator^{shall fix his remuneration as per the} statutory provisions.^{He shall also fix the costs and expenses of the}

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A.Ac"1 flrt&ratin Jppfuatiot No. z z of 202 I

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secretarial assistance for the arbitration proceedings upon deliberation and consultation with the parties. A1l the costs and expenses of the arbitration proceedings shall be borne by both the parties in equal share. The Learned Arbitrator is requested to complete arbitration proceedings, and pass an Award at the earliest, preferably within six months from the date of corunencement of the arbitral proceedings.

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Miscellaneous Applications, if any, pendi.g in the Arbitration

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Application, shall stand closed. No order as to costs.

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Sd/. B.S.CHIRANJEEVI JOINT REG

//TRUE COPY//

SE OFFICER

To,

sri G.Bhupathi. Reddy., Retried District Judge, H.No.2-2-1 o7st22, Bagh Amberpet, Hyderabad. (By special messenger) ((Arong with a copy oi A.A, affidavit and material papers filed with A.A).

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One CC to SRI { |EABIIAKAR, Advocate. tOpUCl 3. One CC to SRI TARUN G. REDDY, Advocaie. tOpUCl Two CD Copies.Copies.

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Two CD Copies.Copies. BSK

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HIGH COURT

A/AR,J

DATED,,2610912022

ORDER

ARB.APPL.No.77 of 2021

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ORDERING THE ARBITATION^APPLICATION WITHOUT GOSTS

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Church of South India Trust Association v. Aurora Educational Society

Case brief

What is this about?

What did the court decide?

Church of South India Trust Association v. Aurora Educational Society

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

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