M/s. Green City Constructions vs M/s. GKB Optolab Private Limited

A.N. Venugopala Gowda

In this petition filed u/s 11(6) of the Arbitration and Conciliation Act, 1996 (for short the Act), the petitioner has prayed to appoint a sole arbitrator to adjudicate the dispute between the parties.

The petitioner and the respondent have entered into an agreement of lease, a supplemental agreement, an arbitration agreement and an agreement to deposit the amount. The petitioner alleged that, the respondent committed default in the matter of performing the contractual obligation in terms of agreement of lease. A notice was issued by the petitioner demanding the respondent to pay the accumulated arrears and vacate the premises. According to the petitioner, the respondent vacated the premises on 12.02.2011. The petitioner contends that, the arrears notified in the notice dated 07.01.2011 was not paid by the respondent and there is a dispute, which is required to be resolved by having recourse to arbitration, as has been specifically agreed to between'' the parties under the registered agreement of lease and also the arbitration agreement. The petitioner has contended that, the respondent did not respond to the notice and hence, it was compelled to file this petition.

Despite service of notice, the respondent has not appeared.

Heard Sri K. Chandranath Ariga, learned counsel appearing for the petitioner and perused the petition.

The petition averments has remained unrebutted. The averments made in the petition are supported by the documents annexed to the petition. Sub-section (6) of Section 11 of the Act provides that, when the parties fail to reach to an agreement as regards the appointment of the arbitrator, they can request the Chief Justice or any person or institution designated by him, to come to the rescue of the parties. Since the respondent has not consented for appointment of a sole arbitrator, the petitioner has filed this petition and sought appointment of an arbitrator to resolve the dispute, which has arisen pursuant to the registered agreement of lease dated 21.02.2008.

The petition and the documents annexed would demonstrate that there is a dispute between the parties with regard to the payment of certain amounts in respect of lease and there is failure on the part of the respondent in according consent for appointment of the arbitrator for resolving the dispute in accordance with the covenants of the lease agreement and the arbitration agreement. Hence, the petitioner is entitled to the relief prayed for.

In the result, the petition is allowed and the dispute between the parties relating to and arising out of the lease agreement dated 21.02.2008, supplemental agreement dated 22.02.2008, are referred to the sole arbitrator Mr. Justice R.G. Vaidyanatha (Retd.), who is free to fix his fee and charges and the ratio in which the same shall be paid by the parties.

The Registry is directed to forward a copy of this order along with a copy of the petition to Mr. justice R.G. Vaidyanatha (Retd.), No. 23, 4th Cross, T Block Jayanagar, Bangalore - 560 011, for information and necessary action.