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2025 DAILYLAW 14334 (AP)

SIMHADRI CONSTRUCTIONS v. PILLA VEERRAJU

ARBAPPL/12/2024 · 2025-07-17

Dhiraj Singh Thakur

Public Interest Litigationbody2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

K ‘ K APHC010176312024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI FRIDAY,THE EIGHTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI DHIRAJ SINGH THAKUR, THE CHIEF JUSTICE ARBITRATION APPLICATION NO: 12 OF 2024 Between: Simhadri Constructions, A Regd. Partnership firm. Rep. by its Managing Partner Simhadri Venkata Satti Lingam S/o.Late Bhanumurthi, Hindu aged 63 years, business, D.No.49-26-44/7, Sai Brindavan apartments Madhuranagar, Visakhapatnam-530016. ...Applicant AND 1. Pilla Veerraju, S/o.Late Krishnamurthy , Hindu, Aged 57 years. Teacher, D.No.82-20-2, A.V.A Road, Mahalakshmi Temple Street, Rajamahendravaram. 2. Pilla Veera Venkata Satyanarayana, S/o. Late Krishnamurthy, Business, Hindu, Aged 55 years. Nearest D.No.8-20-2, Flat No.B-1 and B-2, 1 st Floor, Sri Sai Krishna Kuteer, A.V.A Road, Mahalakshmi Temple Street, Rajamahendravaram. 3. Pilla Nageswara Rao, S/o. Late Krishnamurthy, Cultivation, Hindu, Aged 61 years, R/o. Post Office Street Palathodu, E.G District- 533340. Hindu, Aged 80 years. 4. Pilla Tulasamma, S/o late Krishnamurthy Housewife, Ramalayam Street, Palathodu, E.G District- 533340. / 5. Pilla Vamsi Krishna, S/o Veera Venkata Satyanarayana Hindu, Aged about 20 years. Private Employee Flat No.B-1 and B-2, 1 st Floor, Sri A.V.A Road, Mahalakshmi Temple Street, Sai Krishna Kuteer Rajamahendravaram. ...Respondents Arbitration Application filed U/s 11(5) & (6) of the Arbitration, and Conciliation Act, 1996 R/w Scheme for Appointment of Arbitrator, 2000 praying that the High Court may be pleased to appoint nominee arbitrator on behalf of the respondents under Sec 11(6)(a) of the Arbitration and Conciliation Act, 1996 read with Rules and Scheme under the Act for resolving the disputes between the parties, arising out of the registered development agreement Dt.27-03-2010 (Doc.No. 1895/2010), for constitution of a three-member arbitral tribunal and for adjudication of the claims that would be raised before the Arbitral Tribunal. Counsel for the Applicant: Sri Siva Rama Krishna Kolluru Counsel for the Respondents: Sri T V S Prabhakara Rao The Court made the following order: APHC010176312024 Bench Sr.No:-23 [3441] IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI Arbitration Application No: 12 of 2024 Simhadri Constructions ...Applicant Vs. PillaVeerraju and others ...Respondents ********** Advocate for Applicant: Advocate for Respondents; Mr. Siva Rama Krishna Kolluru Mr. T. V. S.Prabhakara Rao CORAM :THE CHIEF JUSTICE DHIRAJ SINGH THAKUR : 18“^ July, 2025. DATE P C : This is an application filed under Section 11 of the Arbitration and Conciliation Act, 1996, for referring the disputes arising out of and in connection with the Development Agreement-cum-General Power of Attorney entered into between the parties, dated 27.03.2010, to an independent arbitrator. in the event of disputes between the parties, it is stated that the same 2. were agreed to be resolved through the mechanism of arbitration, in the following manner; “If any dispute arise during the tenure of the this agreement, it shall be settled in Rajahmundry by a body of Arbitrators i.e., 3 being nominated by the Developers and the 3 being nominated by the Site Owners and the decision of the majority is final and binding on both parties. When 2 HCJ ARBAPPL_12_2024 there is a tie, both the decision put to lottery and the decision come in the said lottery, it is binding on the both parties.” It is stated that the arbitration clause was invoked by virtue of notice, 3. dated 26.12.2023, which was not only served upon the respondents, but the same was also replied vide reply-notice, dated 03.01.2024. 4. Learned counsel for the respondents does not deny existence of either the arbitration clause in the Agreement or the fact that disputes have arisen which need to be decided through the mechanism of arbitration. However with a view to reduce the arbitration expense, on the suggestion of the Court made on the previous date of hearing, upon instructions, learned counsel for the parties agree that instead of six arbitrators only a sole arbitrator be appointed. 5. Considering the fact that disputes have arisen between the parties which are required to be resolved through the mechanism of arbitration, this application is allowed. Justice A. V. Sesha Sai, 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 DAGPA, dated 27.03.2010, 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 accordance with Schedule IV of the Act. 3 HCJ ARBAPPL_12_2024 No order as to costs. Pending miscellaneous applications, if any, in this application shall stand closed. A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below; Justice A.V. Sesha Sai, Villa No:C-31, Rain Tree Villas, Opp; Nagarjuna University Road, Namburu, Guntur District, Andhra Pradesh - 522 510 Ph; 83310 10693 Sd/- E KAMESWARA RAO JOINT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. Sri Justice A.V Sesha Sai, former Judge of High Court of Andhra Pradesh, Villa No.C-31, Rain Tree Villas, Opp: Nagarjuna University Road, Namburu, Guntur District (along with a copy of Arbitration Application Affidavit and all material papers filed along with Arbitration Application) (BY SPEED POST) 2. The Registrar(Judicial), High Court of Andhra Pradesh at Amaravathi. 3. Pilla Veerraju, S/o.Late Krishnamurthy Hindu, Aged 57 years. Teacher, D.No.82-20-2, A.V.A Road, Mahalakshmi Temple Street, Rajamahendravaram. 4. Pilla Veera Venkata Satyanarayana, S/o. Late Krishnamurthy, Business, Hindu, Aged 55 years. Nearest D.No.8-20-2, Flat No.B-1 and B-2, 1 st Floor, Sri Sai Krishna Kuteer, A.V.A Road, Mahalakshmi Temple Street, Rajamahendravaram. 5. Pilla Nageswara Rao, S/o. Late Krishnamurthy, Cultivation, Hindu, Aged 61 years, R/o. Post Office Street Palathodu, E.G District- 533340. Hindu, Aged 80 years. 6. Pilla Tulasamma, S/o late Krishnamurthy, Housewife, Ramalayam Street, Palathodu, E.G District- 533340. 7. Pilla Vamsi Krishna, S/o Veera Venkata Satyanarayana Hindu, Aged about 20 years. Private Employee Flat No.B-1 and B-2, 1 st Floor, Sri Sai Krishna Kuteer Rajamahendravaram. A.V.A Road, Mahalakshmi Temple Street, 8. One CC to Sri. Siva Rama Krishna Kolluru Advocate [OPUC] 9. One CC to Sri. TVS Prabhakara Rao Advocate [OPUC] 10. The Section Officer, O.S Section, High Court of Andhra Pradesh at Amaravathi 11 .Two CD Copies Vna ••<3 - %- ■V'l HIGH COURT DATED:18/07/2025 ORDER ^ 2 f AUG 20^^ ^ ^ Current Section ARBAPPL NO. 12 OF 2024 mi) ALLOWING THE ARBITRATION APPLICATION / ■ /;> r. )l