N N CAPOOR Vs. A KOTESWARA RAO

JUDGEMENT

(1.) THIS application has been taken out by N.N. Capoor under sub-section (6) of Section 11 of the Arbitration and Conciliation Act, 1996 ('the Act', for short) seeking appointment of a Presiding Arbitrator to resolve the disputes in respect of the property covered by the Registered Development Agreement-cum-General Power of Attorney, dated 12.2.2009.

(2.) (a) The applicant-N.N. Capoor is the owner and possessor of plot bearing No.253, admeasuring 1190 square yards situated at Road No.18, Jubilee Hills Cooperative House Building Society Limited, Jubilee Hills, Hyderabad. He executed a Registered Development Agreement-cum-General Power of Attorney dated 12.2.2009 in favour of the respondents. According to him, he executed the development agreement as a collateral security for the loan of Rs.20,00,000/- availed by him from the respondents. The original title of the plot was also deposited with the respondents as a security measure. The respondents issued a notice dated 22.3.2010 calling upon the applicant to deliver vacant possession of the plot in terms of the development agreement-cum-GPA dated 12.2.2009. The applicant issued a reply dated 30.4.2010 stating that the development agreement has been executed in favour of the respondents as a security for the loan availed from them. On receiving the reply, the respondents sent a rejoinder reiterating the stand taken by them in the notice dated 22.3.2010. The applicant filed OP No.1881 of 2010 on the file of II Additional Chief Judge, City Civil Court, Hyderabad under Section 9 of the Act seeking injunction against the respondents from selling, alienating or dealing in any manner in respect of the said property and obtained interim orders in IA No.3380 of 2010. The applicant also lodged a private complaint against the respondents for various offences and thereupon, the Station House Officer, Jubilee Hills P.S., Hyderabad registered a case in Crime No.263 of 2010 and the crime is under investigation. 2. (b) The development agreement contains an arbitration clause with regard to settlement of dispute. The applicant invoked the arbitration clause in the development agreement and nominated Sri K. Venkateshwar Rao, Chartered Accountant as Arbitrator on his behalf and requested the respondents to nominate their Arbitrator. The notice sent to the respondents returned un-served. However, the respondents sent a legal notice dated 28.1.2011, nominating one Mr. T. Ravi Krishna, Legal Consultant, as the Arbitrator on their behalf. Thereupon, the applicant sent a reply dated 10.2.2011 informing the respondents of his nominating Mr. K. Venkateshwar Rao on his behalf. The Arbitrators appointed by the applicant and the respondents have to appoint a common umpire to commence the arbitration proceedings for resolution of the disputes. As on this day, no Presiding Arbitrator has been appointed by the Arbitrators chosen by the parties. Hence, this application seeking the prayer stated supra.

(3.) HEARD learned Counsel appearing for the applicant and learned Counsel appearing for the respondents.