Sri. Sudhir Shah, Vs M/s. Sahiti Constructions — Arbitration | Telangana HC (2025)

Sri. Sudhir Shah, Vs M/s. Sahiti Constructions — Arbitration | Telangana HC (2025)

What the court decided

AI extract

Outcome

Appointment of Sri Justice G.V. Seethapathy, former Judge of the High Court for the State of Telangana, as sole Arbitrator; office directed to communicate a copy of the order to the Arbitrator; miscellaneous petitions, if any, stand closed.

Issue for consideration

Whether, upon invocation of clause 7 of the MOU dated 29.04.2022 and the respondents' failure to respond, a sole arbitrator should be appointed under Section 11(5) of the Arbitration and Conciliation Act, 1996 to adjudicate the disputes between the applicant and the respondents in respect of the MOU.

Court's answer

The applicant, as per clause 7 of the MOU dated 29.04.2022, issued notice and the respondents did not reply; by the said clause the parties agreed that disputes be referred to an arbitrator for settlement, and the clause is binding on the parties.

Ratio / Principle

Sri Justice G.V. Seethapathy, a former Judge of this Court, is appointed as sole Arbitrator to adjudicate the disputes between the parties; the parties shall appear before the Arbitrator with a copy of the order, may raise all their contentions, and the sole arbitrator shall proceed with the arbitral proceedings in accordance with law.

Detailed headnote1 paragraphs

Arbitration and Conciliation Act, 1996 — Section 11(5) — appointment of sole arbitrator — applicant agreed to purchase flat No.505 in 'Sahiti's Kruthi Blossoms', paid Rs. 1,45,00,000/- and received original title deeds; MOU dated 29.04.2022 with respondent No.1 stipulated handover within 36 months plus 6-month grace period, which was not honoured, and respondent No.1 sold the property to respondent No.2 (doc. No.B866 of 2022, dt. 24.05.2022). Clause 7 of the MOU required disputes to be referred to arbitration under the 1996 Act; applicant's notice dated 12.08.2024 went unanswered (notice on respondent No.2 returned unclaimed). A Section 9 application (O.P.No.113 of 2023) was pending before the IX Addl. Chief Judge, City Civil Court, Hyderabad. Respondents, duly served, did not appear. Held: clause 7 bound the parties; Sri Justice G.V. Seethapathy, former Judge of the Court, appointed sole Arbitrator; parties to appear before him with a copy of the order and free to raise all contentions. Application disposed of.

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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

FRIDAY, THE TWENry FIRST DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SRI JUSTICE N.V.SHRAVAN KUMAR

ARBITRATION APPLICATION NO: 294 OF 2024

Between:

'l . Sri. Sudhir Shah S/o Sri. Madan Mohan Das, Aged about. 62 years, Occ Business, R/o. 4-6-464, Esamiya Bazar, Kothi, Hyderabad-500027, T.S.

...APPLICANT

AND

M/s. Sahiti Constructions, Principal Place of Business at Plot No. 1222, #8-22931821N12221F4, Fourth Floor, Road No.36, Jubilee Hills, Hyderabad500033, Rep.by its Partner Smt. B. Parvathi Wo. Sri. B. Lakshmi Narayana, Hyderabad-500081 .

Mls. Shalimar Super Retail Private Limited, Office at 15-1-503/4/9, Ashok Market, Siddiamber Bazar, Hyderabad, Rep. by its Direct{ Sri. Kamal Kumar Jain, S/o. Late Vijay Kumar Jain, Aged about.49^years, Occ. Business, R/o. 8-2-2931821N688, RoadNo.33, JubileeHills, Hyderabad.

...RESPONDENTS

Arbitration Application filed under Section 1 1(5) of the Arbitration and Conciliation Act of 1996, praying that this Hon'ble Court may be^pleased to allow the present application and appoint a sole Arbitrator as this Court may deem fit as per the Provisions of Arbitration and Conciliation Act,1996, to adjudicate and decide dispute as per clause 7 of Memorandum of understanding Dt. 29.04.2022 between the parties.

Counsel for the Petitioner: Sri Ashok Kumar Agarwal

Counsel for the Respondents: None Appeared

The Court made the following: ORDER

HONOURABLE SRI JUSTICE N.V.SHRAVAN KUMAR

Arbitratio nApplication No.294 of 2o24

ORDER:

This Application is filed under Section I I (5) of the Arbitration and Conciliation Act, 1996 to appoint a Sole Arbitrator for the purpose of adjudication of disputes that have arisen betu,een the applicant and respondents in respect of Memorandum of unclerstanding dated 29.O4.2022.

Facts gii,ing rise to file this application are that. the applicant agreed to purchase a semi-finished flat bearing No.505 in the 5,r. floor of ,,Sahiti,s Kruthi Blossoms, with built f up area of 24lO Square leet, rvith an undivided share of land to an extent of 57 square yards u,ith common areas along with 2 car parklng, srtuated at plot No.22_C and 23_C, 3OB/ll4 and 3OC/24C, at Sy.Nos.78, g0 to g4 of partika Nagar, Madhapur Village, Sherilingampally Mandal, Ranga Reddy District, Telangana The applicant had paid an amount of Rs. 1,45,00,000/ (Rupees One Crore Forty Five lakh only) and the respondent No.1 has l-randed over all the orrginal title deeds to the applicant. On 29.04.2022, Lhe applicant and respondent No_ I have entered into an Memorandum of Understanding, u.herein the respondent No.l undertook to

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handover the subject property to the applicant within 36 months, with a grace perioC of 6 months. however, the same was not handed over and respondenl. llo.1 had sold^.the subject property to respondent No.2 and the sarne was registered uide document No.B866 r:f 2022 dated 24.O5.2022

Learned counsel for the applicant hels drawn attention of this Court to the clause '7' of the Memorandum of Understanding dated 29.0.1.2022, for refcrence the samc is extracted hereunder:-

"ln case of any dispute aise between the^parties, haue^to settle amicable in the euent of ang failure^tol, settle^the dispute of difference shall be referred to the arbitrator^and. the orbitration proceedings utill be conducted according to the prouision of the Inciian Arbitrotion artd Conciliation Act 1996. The arbitration award uill be bindin.g upon tte^both the parties and final. The- place of the arbitration u.till^{be at} Ilgderabad at'Ld proceedings tttill be in En^gLish."

Learned counsel for the applicant submits that^the applicant, under Section 9 of Arbitration^{and Conciliation Act,} had filed O.P.No.113 of 2023, seeking^{tempora-ryinjunction} against the respondents from alienating^{the subject property} and the same is still^pending before^{the IX Addl.ChiefJudge,} City Civil Court, Hyderabad.

Learned counsel for the applicant further^{submitsthat in} view of the disputes between the parties, the applicant^{as per}

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clause '7' of the^{MOUdated 29.O4-2O22,issued notice dated} 12.O8.2024, and the^{same was served on respondent No'1 and} notice to respondent^{No.2was returned as 1-rnclaimed''It is} further submitted that^{inspiteof receiving notice, respondent} No.1 did not reply to^{the legal notice dated 12'08'2024, for} invocation of arbitration^{and forappointment ofsole} arbitrator. Hence,^{the applicantfited the presentapplication'}

This Court on 29.11.2024'^{issued notice tothe} respondents and^{permitted the applicant to take out peisonal} notice on respondents.^{Learned counsel for applicant filed} memo dated 03.01.2025, stating^{that notice to re(pondents is} served.

Heard learned counsel for the^{applicant and none} appeared for respondents.

II

B. Admittedly, the applicant as^{per clause '7'of the MOU} dated 29.O4.2O22, issued^{noticeand respondents did not reply} to the same and as^per the^{said clause, the parties, in case of} an disputes agreed to refer the disputes^{to Arbitrator for} settlement ald the same is binding^{on the parties.}

Recording the above submissions, this Arbitration Application is disposed ol and Sri Justice G.V.Seethapathy, a

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former Judge of this Courr (resident of H.No.5-8-3O/24, Govardhanpuri Gardens, Yapral, Sec'bad-S7; Mobile No. 9989968686), is appointed as an Arbitrator to adjudicate the disputes between the parties, The parties shall appear before the Arbitrator, along wittr a copy of this order. It is open to the parties to raise zrll their contentions before the Arbitrator, and thereafter, the sole arbitrator shall proceed with the arbitral proceedings in accordance u,ith law.

1O. Accordingly, the Arbitration Application is disposed of.

1 1 . OIfice to communicatc a copy of this order to the learned

Arbitrator

Miscellaneous petitions, pending if any, stancl closed.

Sd/. M..VIJAYA BHASKER INT REGISTRAR

//TRUE COPY//

SECTION OFFICER

To,

Sri Justice G.V.Seethapathy, Former Judge, High Court for the State of Telangana, R/o H.No. 5-8-30/34, Govardhanpuri Gardens, Yapral, Sec'bad87; Mobile No. 9989968686. (By Special Messenger)^(Along with a^Copy of affidavit and material papers)

M/s. Sahiti Constructions, Principal Place of Business at Plot No. 1222,8-22g3tB2tN1222tF4, Fourth Floor, Road No.36, Jubilee^'Hills, Hyderabad500033, Rep.by its Partner Smt. B Parvathi Wo. Sri.^{B. LakshmiNarayana,} Hyderabad-500081 .

M/s. Shalimar Super Retail Private Limited,, Office at 15-1-503/4/9,^Ashok Market, Siddiamber Bazar, Hyderabad, Rep. by its Director Sri. Kamal^Kumar

' Jain, S/o. Late Vijay Kumar Jain, Aged about.49 years, Occ. Business, R/o8-2-2931 821 N688, Road No. 33, J ubileeHills,^Hyderabad.

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One CC to Sri Ashok Kumar Aganrval, Advocate [OPUC]

Two CD Copies

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HIGH COURT

DATED: 2110212025

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ORDER

ARBAPPL.No.294 of 2024

DISPOSING OF THE ARBITRATION APPEAL t0