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2025 DAILYLAW 11523 (AP)

GUNTI NAGESWARA RAO v. KALPATARUVU CHITS

ARBAPPL/25/2023 · 2025-01-10

Dhiraj Singh Thakur

body2025

Judgment text

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JT IN THE HIGH COURT OF ANDHRA the tenth day of JANUARY TWO THOUSAND AND TWENTY present PRADESH AT AA/IAR FIVE HON’BLE SRI JUSTICE DHIRAJ ARBITRATION APPLICATinKj SINGH THAKUR, CHIEF JUSTICE No.25 of 20?.-^ Between: 1. Gunti Nageswara Rao, S/o. Sadaslvaiah, aged about 63 Pal ° H ^"^"V^napuram Palnadu District. years, resident of Chilakaluripet, 2. Hima Sailusha, W/o. Abdul Razak USA Rep. by her sister years, resident of H.No. aged 36 years Dr. Bindu Madhuri, W/o. presently residing in Dr. Goli Rajesh, aged 34 M 5-269/2, OR Colony Main Narayanapuram, Chilakaluripet, Palnadu District, 3. Dr. Bindu Madhuri, W/o. 5-269/2, OR Colony Main Palnadu District. Road, MV Dr. Goli Rajesh, aged 34 Road, MV years, resident of H.No. Narayanapuram, Chilakaluripet, -Applicants AND 1. Kalpataruvu Chits, Narasaraopet Rep. by its Managing Partner aghu Ram, Reddy, D.No. 7-2-66, Old Police Station 2. Lanka Raghu Rami Reddy, R/o. 9-473/2, CR Colony 2’ Cell No.9246487502. Lanka Road, Narasaraopet. S/o. L. Lakshma Reddy, Managing Partner, lane, Chilakaluripet. Palnadu nd District-522616. 3. Rattan Jaffar Khan, S/o. Khasimm Khan, Managing Partner, R/o. 13-52, Gurrala Chavadi, Chilakaluripet, Palnadu District. 4. Lanka Rajanikantha Reddy, S/o. L Adinarayana Reddy, R/o. 9-473/1 CR Colony, 2"^^ Lane, Chilakaluripet, Palnadu District. 5. Sankati Srinivasa Reddy, S/o. S. Pedda Venkata Reddy, Kalpataruvu Chits D.No.6-9-24, 3'^^ floor, Kalpataruvu House building 9/2, Arundelpet, Guntur, Andhra Pradesh. 6. Sankati Siva Parvathi, W/o Sankati Subba Reddy, Managing Partner, R/o. 9-473/3,CR Colony 2"^^ lane, Chilakaluripet, Palnadu District. 7. Talla Venugopala Reddy, S/o. Talla Radha Krishna Reddy, R/o. D.No. 7-2- 66, Old Police Station Road, Narasaraopet, Palnadu District 8. Ippala Dana Reddy, S/o. Raghava Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District. 9. Chirra Krishna Reddy, S/o. Anji Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District 10.Ippala Pitchamma, W/o. Dana Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District. 11.Talla Radha Krishna Reddy, S/o. Venkata Rami Reddy, R/o. D.No. 7-2-66 Old Police Station Road, Narasaraopet, Palnadu District. 12.Talla Rajasekhara Reddy, S/o. Talla Radha Krishna Reddy, R/o. D.No. 7- 2-66, Old Police Station Road, Narasaraopet, Palnadu District. ...Respondents Application filed under Sub-Section (5) of Section 11 of the Arbitration and Conciliation Act, 1996 R/w para (3)(i)(c) of Scheme for appointment of Arbitrators, 2006 for the aforesaid reasons stated in the accompanying affidavit the applicant therefore prays that this Honourable Court may be pleased to appoint an arbitrator for settlement of disputes between applicants on one hand and respondents on the other hand in respect of Kalpataravu Chits, Narasaraopet. Counsel for the Petitioners : Dr Sastry Jandhyala Counsel for the Respondents: Sri P.Prabhakar for Sri Ghanta Sridhar The Court made the following: APHC010133612023 Bench Sr.No:-9 [3441] !N THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI “> 0? ARBITRATION APPLICATION NO: 25 of 2023 Gunti Nageswara Rao and others ...Applicants Vs. Kalpataruvu Chits and others ...Respondents Advocate for Applicants Advocate for Respondents Dr. Sastry Jandhyala Mr. P. Prabhakar for Mr. Ghanta Sridhar CORAM :THE CHIEF JUSTICE DHIRAJ SINGH THAKUR DATE : 10th January 2026 P C : The present Arbitration Application has been filed under Section 11(5) of the Arbitrators and Conciliation Act, 1996, for appointment of an Arbitrator to adjudicate upon the disputes arising out of and in connection with the Partnership Deed, dated 01.04.2004, The disputes are stated to have arisen between the partners which are sought to be resolved through the mechanism of arbitration as was envisaged in terms of dau.se 18 of the Partnership Deed, which reads as 2. under: Referring of Disputes to Arbitrators: That all disputes and differences relating to the partnership or its dissolution or arising out of this deed betvreen the parties to this deed, or between their legal 18. 2 HO A.A.No,25 of 2023 representatives, or between any of them and their respective legal representatives; whether during the subsistence of partnership or at any time thereafter, shall be referred to arbitration in accordance with the provisions of Indian Arbitration Act, 1940 or if any modifications therein and the decision or award given by the arbitrators shall be binding on all the parties hereto. ” It is stated that a notice, dated 24.10.2022, was served upon the respondents invoking the arbitration clause and proposed the name of Mr. A. Radha Krishna, Retired District Judge, to settle the disputes and differences between the parties which, however, was not agreed to by the respondents, who, in turn, suggested the name of Mr. Gabbiti Sivarama Krishna Prasad an Arbitrator, which too was not acceptable to the applicants. 3. as 4. Having failed to arrive at a consensus in regard to the choice of the arbitrator, the present application has been filed seeking the appointment of an Arbitrator to resolve the disputes. 5. Learned counsel for the respondents does not dispute the existence of the arbitration clause in the agreement and only seeks that their rights be reserved to raise all possible objections to the claims / counter claims before the learned Arbitrator. 6. Be that as it may, the present application is allowed. Justice G. Shyam Prasad, former Judge of the High Court of Andhra Pradesh, is appointed as an Arbitrator, who shall enter upon the reference and adjudicate upon the disputes arising out of and in connection with the Partnership Deed, HQ 'IT' A.A.No.25of 2023 dated 01.04.2004, and render the Award within the statutory period. The question of arbitrability of the claims is left open to be decided by the learned Arbitrator. The parties shall be free to file detailed claims and counter-claims, before the learned Arbitrator. The learned Arbitrator shall also be entitled to claim the fee in consultation with the parties, keeping in view the provisions of the Fourth Schedule of the Arbitration and Conciliation Act, 1996. No costs. Pending miscellaneous applications, if any, shall stand closed. A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below; Justice G. Shyam Prasad, TEAK, Flat No.604, Raintree Apartments, Nambur, Guntur, Andhra Pradesh. Ph# 8331044099 Sd/- E. KAMESWARA RAO JOINT REGISTRAR //TRUE COPY// ' SECTION OFFICER To 1. Sri Justice G.Shyam Prasad, former Judge of the High Court of Andhra Pradesh, R/o.TEAK, Flat No.604, Raintree Apartments, Nambur, Guntur District, Andhra Pradesh. Mobile No:8331044099. (along with a copy of Arbitration Application Affidavit and all material papers filed along with Arbitration Application) The Registrar (Judicial), High Court of Andhra Pradesh, Amaravathi. One CC to Dr Sastry Jandhyala, Advocate [OPUC] One CC to Sri Ghanta Sridhar, Advocate [OPUC] Kalpataruvu Chits, Narasaraopet Rep. by its Managing Partner Lanka Raghu Rami Reddy, D.No. 7-2-66, Old Police Station Road, Narasaraopet. Lanka Raghu Rami Reddy, S/o. L. Lakshma Reddy, Managing Partner, R/o. 9-473/2, CR Colony 2"’'' lane, Chilakaluripet, Palnadu District-522616, Cell No.9246487502. 2. 3. 4. 5. 6. 7. Rattan Jaffar Khan, S/o. Khasimm Khan, Managing Partner, R/o. 13-52, Gurrala Chavadi, Chilakaluripet, Palnadu District. 8. Lanka Rajanikantha Reddy, S/o. L Adinarayana Reddy, R/o. 9-473/1 CR Colony, 2"^^ Lane, Chilakaluripet, Palnadu District. 9. Sankati Srinivasa Reddy, S/o. S. Pedda Venkata Reddy, Kalpataruvu Chits D.No.6-9-24, 3'^ floor, Kalpataruvu House building 9/2, Arundelpet, Guntur, Andhra Pradesh. 10.Sankati Siva Parvathi, W/o Sankati Subba Reddy, Managing Partner, R/o. 9-473/3,CR Colony 2nd lane, Chilakaluripet, Palnadu District. Il.Talla Venugopala Reddy, S/o. Talla Radha Krishna Reddy, R/o. D.No. 7-2- 66, Old Police Station Road, Narasaraopet, Palnadu District 12.lppala Dana Reddy, S/o. Raghava Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District. 13.Chirra Krishna Reddy, S/o. Anji Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District 14.lppala Pitchamma, W/o. Dana Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District. 15.Talla Radha Krishna Reddy, S/o. Venkata Rami Reddy, R/o. D.No. 7-2-66, Old Police Station Road, Narasaraopet, Palnadu District. 16.Talla Rajasekhara Reddy, S/o. Talla Radha Krishna Reddy, R/o. D.No. 7- 2-66, Old Police Station Road, Narasaraopet, Palnadu District. 17.The Section Officer, O.S. Section, High Court of Andhra Pradesh at Amaravathi. 18.Three CD Copies TK Cnr HIGH COURT TK DATED:10/01/2025 ORDER ARBAPPL.No.25 of 2023 5 2 UAN 2025 ALLOWING THE ARBITRATION APPLICATION