Research › Search › Judgment

High Court of Andhra Pradesh · body

2025 DAILYLAW 11648 (AP)

M/s City Pride Buildcon Pvt. Ltd v. Rashtriya Ispat Nigam Limited

ARBAPPL/10/2024 · 2025-06-26

Dhiraj Singh Thakur

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010135402024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI FRIDAY,THE TWENTY SEVENTH DAY OF JUNE TWO THOUSAND AND TWENTY FIVE PRESENT HON’BLE SRI JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE ARBITRATION APPLICATION NO: 10 OF 2024 Between: M/s City Pride Buildcon Pvt. Ltd, Office at- Pocket-N 250A, Sarita Vihar, New Delhi-110076 Through its Authorized Director Sh. Harish Kumar, S/o. Satbir Singh, Aged about 38 years, resident of Flat No. 155, Pocket-2, Jasola, New Friends Colony, Delhi-110025 Aadhar no- 419408314297 Mobile No- 9599915910 Email- citypride71 @gmail.com ...Applicant AND Rashtriya Ispat Nigam Limited, Regd. Off. At Main Administrative Building Vishakapatnam-530031 Through its General Manager (Project Contracts) Email hod projcont@,vizag steel.com proicont@,vizagsteel.com ...Respondent Arbitration Application under Section 11 (5) (6) of the Arbitration and Conciliation Act, 1996 R/w Section 3 (i) (d) of Scheme for appointment of Arbitrator as framed by High Court at Hyderabad, for the reasons mentioned in the accompanying affidavit, it is most humbly prayed to appoint a Sole Arbitrator under sections 11 (5) (6) of the Arbitration and Conciliation Act, 1996 for adjudicating the disputes between the Applicant and the Respondent arising out of the Agreement, dated 19.01.2019 and to award costs of this application. Counsel for the Applicant: Sri Hanumanthu Hyndhavi Counsel for the Respondent: Sri Shanmukha Teja appearing vice Sri Kiran Kumar Vadlamudi The Court made the following; APHC010135402024 IN THE HIGH COURT OF ANDHRA PRADESH Sr.No:-2 [3441] SMB AT AMARAVATI ARBITRATION APPLICATION NO; 10 of 2024 M/s. City Pride Buildcon Pvt. Ltd. ...Applicant Vs. Rashtriya Ispat Nigam Limited ...Respondent •kit'k’k-kic-kieifk Advocate for Applicant Ms. Hanumanthu Hyndhavi Advocate for Respondent Mr. M. Shanmukha Teja appearing vice Mr. Kiran Kumar Vadlamudi CORAM :THE CHIEF JUSTICE DHIRAJ SINGH THAKUR DATE : 27.06.2025 PC : This is an application filed under sub-sections (5) & (6) of Section 11 of the Arbitration and Conciliation Act, 1996, for reference of the disputes arising out of and in connection with the Agreement, dated 19.01.2019. 2. A construction contract was awarded in favour of the applicant and an agreement was executed in that regard on 19.01.2019. There was delay stated to have been caused in the execution of the contract by the applicant on account of the factors attributable by the respondents. The factors leading to the delay, inter alia, were on account of delay in handing 2 Ha A.A.No.lO of 2024 over site, delay in approval of drawings, delay in new land allocation, changes in drawings, handing over of site in piecemeal manner. 3. It is stated that the issue of delay and hindrances faced by the applicant were brought to the notice of the respondent and also that an extension was sought for the completion of the contract. It is stated that extension was granted up to 27.02.2020 and which was not as per the request of the applicant. Delay is also attributed to the Covid-19 pandemic, which the applicant claims disrupted the execution of the contract in question. 4. An extension is then stated to have been allowed vide email. dated 28.04.2021, up to 31.05.2021, without considering the impact of the second wave of Covid-19, which had gripped the nation. Finally it is stated that the applicant was served a show-cause notice giving 5 days for termination of the contract which was responded to by the applicant. However, the contract in question was terminated, which was communicated vide communication, dated 01.07.2021. 5. The applicant claims that disputes have arisen between the parties and the same were envisaged to be resolved through the mechanism of arbitration as contained in Clause 28.2 of the aforesaid agreement. A notice, dated 09.08.2023, placed on record through a Memo filed by the applicant, is stated to have been served upon the respondent invoking the arbitration clause. Proof of service of the said notice by way of acknowledgment due is also placed on record. It is stated that despite the 3 HCJ A.A.No.lO of 2024 receipt of the said notice, no action was taken to appoint the arbitrator and hence the Arbitration Application. 6. The respondent in their counter affidavit have taken a stand that the applicant had not invoked the arbitration clause and that no notice was served upon it. However, in view of the fact that the applicant has placed on 7. record, a copy of the notice, dated 09.08.2023, sent by the applicant through its counsel and served upon the respondent, the objections raised by the respondent that the arbitration clause had not been invoked, fail. Be that as it may, considering the fact that the disputes have 8. arisen, which are required to be arbitrated in terms of the aforesaid arbitration clause, this Arbitration Application is allowed. Justice T. Sunil Chowdary, 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 Agreement, dated 19.01.2019, and render the Award within the statutory period. 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. No costs. Pending miscellaneous applications, if any, shall stand closed. 4 HG A.A.No.lO of 2024 A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below: Justice T. Sunil Chowdary, Flat No.401, Amaravathi Pride Apartments, Seed Access Road, Near Thailayapalem Village Thullur Mandal, Guntur District - 522503 Ph: 9440405731. Sd/- S.V.S.R.MURTHY JOINT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. Sri Justice T.Sunil Chowdary, former Judge of the High Court of Andhra Pradesh, R/o Flat No.401, Amaravathi Pride Apartments, Seed Access Road, near Thailayapalem Village, Thullur Mandal, Guntur District- 522503, Ph; 9440405731 (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 at Amaravathi Rashtriya Ispat Nigam Limited, Regd. Off. At Main Administrative Building Vishakapatnam-530031 Through its General Manager (Project Contracts) Email hod pro]cont@,vizagteel.com proicont@, vizagsteel.com One CC to Sri. Hanumanthu Hyndhavi Advocate [OPUC] One CC to Sri. Kiran Kumar Vadlamudi Advocate [OPUC] The Section Officer, O.S Section, High Court of Andhra Pradesh at Amaravathi 2. 3. 4. 5. 6. 7. Two CD Copies Stu vna HIGH COURT DATED:27/06/2025 ORDER ARBAPPL No.10/2024 [ 0 JUL 2025 1^ A . rT»ntSectionXV> o Co ALLOWING THE ARBITRATION APPLICATION