Allowed

Mr.Mandadi Raghavendar Reddy v. M/s. Anish Educational Society (Aes)

Telangana HC18 Oct 2024ARBAPPL/190/2024

Case brief

AI extract

What is this about?

Applicant sought appointment of a sole arbitrator for disputes over a Rs.3 crore loan under a 2019 agreement with an educational society, invoking the arbitration clause after unpaid dues. Respondent did not appear despite service; the court allowed the application and appointed a former High Court judge as arbitrator.

What did the court decide?

Sri Justice Samudrala Govinda Rajulu appointed sole Arbitrator to adjudicate disputes and pass award in accordance with law.

Mr.Mandadi Raghavendar Reddy Vs M/s. Anish Educational Society… — Arbitration | Telangana HC (2024)

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[³¹⁸³ ]

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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

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FRIDAY, THE EIGHTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SRI JUSTICE B.VIJAYSEN REDDY

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ARBITRATI ONA PPLICATION NO: 190 OF 2024

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Between:

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Mr. Maldadi Raghavendar. Reddy-, -S/o M Lakshmi Reddy, aged about 43 years, Occ. Advocate , Resident o'f :0, eSX CrusCent, Wii'.rf"i, +f S+, OLO, Australia

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Represented by his Generar power of Attorney horder Mr. s. venkateshwara R-eddy, S/o Bai Ready, Aged about oz v.rir,bii,'Advocate, R/o. H.No.B_2_ 68414118, Banjara Hiils, Ro;d tto.tZ, ffyderaO"JSOObIa

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...Applicant /^petitioner

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AND

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M/s. Anish Educational Society (AES) .l-1-31tA, Saket lvlain Road, ECIL Kapra (M)_, Medchat Diskict, HyrieraUaO - SOOOIiZ, nEgn rrto t-gt) orZOOS, Rep. by Mr. Thakur Anil Kumar

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...Respondent

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Application under section 1 1 (6) of the Arbitration and conciliation Act, .1996 r/w scheme for Appointment of Arbitrator, 1996, the Hon'bre court may be preased to

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Appoint a sole Arbitrator to adjudicate and resorve the disputes between the Applicant and Respondent that pertain to the violation of the Memorandum of Agreement dated 16/01t2019:

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Award costs for the application;

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Counsel for the Applicant : Sri Kailash Nath^p S S

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Counsel for the Respondent :

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The Court made the following Order :

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THE HONOURABLE SRIJUSTICE B. VIJ,AYSEN REDDY ARBITRATION APPLICATION No.190 OF 2024

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ORDER

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This application is filed under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short'Act 1996') for appointment of Sole Arbitrator to adjudicate the disputes betweren the applicant and the respondent arising out of l\4emorandum of Agreement dated 16.01 .2019.

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The case of the applicant is that the respondent has obtained loan of Rs.3,00,00,0001 from him for the pu-pose of Educational lnstitution. The terms and conditions agreed upon between the parties have been reduced into writing under agreement dated 16.01 .2019. The applicant paid loan amount to the respondent in instalments between February, 2019 to September, 2019, totalling to Rs.3,00,00,0001 through bank transfer.

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lt is submitted that as per terms of the agreement, the respondent was under obligation to appoint the applicant as the VicePresident of the lnstitution and pay interest on loian amount at the rate of 6% per annum or profit at the rate of 50% afterr tax deduction, on a periodical basis.

I I i \

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lt is submitted that the respondent did not adhere to the terms and conditions of the agreement. At the request of the applicant, the respondent convened meeting of its Executive Committee on 20.03.2023, wherein they undertook to repay the loan amount within three months. However, the loan amount was not repaid.

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lt is stated that on 30.12.2023, the applicant issued arbitration notice through his counsel under Section 21 o'f Act^'1996, requesting the respondent to give consent for appointing Sri Justice C.V. Ramulu, Former Judge of erstwhile High Court of Andhra Pradesh, as Arbitrator. The respondent issued reply notice dated 19.01 .2024 seeking extension of time until February, 2024,'for repayment of loan amount. However, the respondent did not abide by such terms. ln the circumstances, the applicant invoked Clause No.1 1 of the agreement which provides for arbitration.

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Personal notice taken out to the respondent was served. Memo of proof of service^yrde USR No.93176 of 2024 was filed on 25.09.2024. But there is no appearance on their side.

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As there is no contest from the respondent, the arbitration application is allowed appointing Sri Justice Samudrala Govinda Rajulu, Former Judge of erstwhile High Court of Andhra Pradesh,

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r/o. D.No.'1 1-5-451, Flat No.502, paramountApartments, sth Floor, Red Hills, Hyderabad-4, as Arbitrator to adjudicate tht: claims and disputes between the parties and to pass an award in acccrdance with raw.

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The learned Arbitrator is entitled to fees as per the rates specified in the Fourth Schedure to Act 1g96, inserted by Act 3 0f 2016 with effect from 23.10.2015, which shall be borne by both parties in equal shares

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As a sequel thereto, miscellaneous applical.ions, if any, pending in this arbrtration application stand closed.

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Sd/- C.V. MALLIKARJUNA VARMA JOINT REGISf,RAR

//TRUE COPY//

\ SECTION OFFICER

To,

Sri Justice Samudrala Govlnda Rajulu, S$ Former Judge of erstwhile High Court of Andhra Pradesh, R/o. D.No. 11-5-45lLFlat No. 502, paramount" Apartments. 5'h Floor. Red Hills. Hyderabad .^{- ''}

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( By Special Messenger )

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One CC to Sri Kailash Nath P S S, Advocate [OPUC]

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3 Two CD Copies

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Vtugh

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(Along with a copy of affidavit and material papers)

HIGH COURT

DATED:1811012024

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ORDER

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ARBAPPL.No.190 ot 2024

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ALLOWING THE ARBAPPL

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a.dA
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Mr.Mandadi Raghavendar Reddy v. M/s. Anish Educational Society (Aes)

Case brief

What is this about?

What did the court decide?

Mr.Mandadi Raghavendar Reddy v. M/s. Anish Educational Society (Aes)

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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