SURENDER SINGH BAJAJ S O LATE SARDAR PREM SINGH C O FERRO INSULATION PRIVATE LIMITED HYDERABAD SECUNDERABAD Vs. HARMEET SINGH SETHI

JUDGEMENT

(1.) Invoking the jurisdiction of this Court under Section 11 (5) of the Arbitration and Conciliation Act, 1996 the applicant has filed this application praying for appointment of an Arbitrator for resolution of the disputes between the applicant and the respondents.

(2.) The applicant claims to have purchased an extent of Ac.2.02 guntas and Ac.2.24 guntas of land, comprised in Sy.Nos.396 and 399 respectively of Medchal Taluk, Attavalli village, Ranga Reddy District, benami in the names of respondent Nos.1 and 2, under registered sale deeds. Respondent Nos.1 and 2 are closely related to the applicant, respondent No.2 being his sister and respondent No.1 being the daughter-in-law of respondent No.2. In order to safeguard the interest of the applicant, an agreement acknowledging the real ownership of the property was executed by the parties on 6-2-1990 which according to the applicant reveals the real ownership of the applicant and the intention of the parties about the entire sale transaction. The said agreement contains an arbitration clause in Clause 8, which lays down the course of action to be taken by the parties in case any disputes arise amongst them, and names one Sardar Bhupender Singh to be appointed as Arbitrator, who unfortunately died on 25-4-1999.

(3.) The applicant submits that the respondents with a dishonest intention to grab the properties purchased by the applicant in their names benami filed a complaint against the applicant on the file of the V Metropolitan Magistrate, Nampally, stating that their signatures were taken on blank papers to make wrongful loss to them. On the complaint being referred to Banjara Hills Police Station, the police registered the same as FIR No.556/2001, dt. 21-10-2001 under Section 379, 420, 467, 468 and 471 I.P.C. The applicant states that when he made an application to the Economic Offences Court, Nampally, for withdrawal of the surety given by him to Mr. H.S. Sethi, who is none other than the son of respondent No.2 and husband of respondent No.1, Mr. H.S. Sethi filed two suits against the applicant for recovery of certain monies, and on such suit being O.S.No.21 of 2002 on the file of the III Additional Chief Judge, City Civil Court. Hyderabad, was withdrawn by Mr. H.S. Sethi on 10-4-2002 on the applicant filing his written statement. The applicant submits that Mr. H.S. Sethi is holding a number of non-judicial stamp papers bearing the signatures of the applicant and misusing the same. The applicant submits that earlier he filed application A.A.No.57 of 2002 for appointment of Arbitrator, which he withdrew on 19-2-2003 reserving himself liberty to file fresh application in terms of Section 11 of the Arbitration and Conciliation Act, 1996. Thereafter, the applicant invoking the arbitration clause in Clause 8 of the agreement dated 6-2-1990, got issued legal notice dated 20-2-2002 to the respondents, calling upon them to appoint an Arbitrator for resolution of the disputes between the parties, and when there was no response from the respondents in spite of receipt of the said legal notice, the applicant moved the present Arbitration Application seeking appointment of an Arbitrator.