PARSAM HOMES Vs. ANIL SAHAI

JUDGEMENT

(1.) This petition is filed seeking the appointment of the arbitrator under Section 11(4)(a) of the Arbitration and Conciliation Act, 1996 ('the said Act' for short).

(2.) Sri Christopher. E, the learned counsel for the petitioners submits that the petitioner No.1 and the respondent Nos.1 and 2 herein have entered into Joint Development Agreement, dated 11.10.2006 (Annexure-B). He read out clause 25 of the said agreement providing for arbitration. It is as follows:

(3.) He submits that the respondents terminated the said agreement vide legal notice, dated 21.1.2013 (Annexure-C). He submits that the petitioners caused the issuance of the legal notice, dated 22.8.2013 (Annexure-G) proposing to appoint Sri S.R. Ashok, Senior Advocate, High Court of Andhra Pradesh as the arbitrator and calling upon the respondents to nominate their arbitrator. The respondents caused the issuance of the reply, dated 6.9.2013 (Annexure-H) to the legal notice. The sum and substance of the reply is that as the agreement itself is terminated, there is no dispute warranting the appointment of the arbitrator and that the respondents have already filed O.S.No.2045/2013 for the relief of perpetual injunction. Thereafter, the first petitioner filed Arbitration Application No.141/2013 in the High Court of Judicature at Hyderabad. The said High Court, by its order, dated 11.7.2014 dismissed the said application holding that no cause of action for filing it has arisen within its territorial jurisdiction.