IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATU FRIDAY, THE FOURTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT HON’BLE SRI JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE ARBITRATION APPLICATION No.15 of 2024 Between: M/s Resins and Allied Products, Rep by its Administrative In charge (FIR), Vadde Chandra Sekhar, R/o. Plot No. 176/2A, D.No.13-2, Nidamanuru, Vijayawada, NTR District. ...APPLICANT AND 1. The Union of India, Rep by its Secretary, Ministry of Defence, DRDO Bhawan, RajajiMarg, New Delhi, 100003. 2. The Chairman, Defence Research and Development Organization DRDO, DRDO Bhawan, RajajiMarg, New Delhi, 100003. The Director, Advanced Naval Systems Programme, Ministry of Defense, Post Box No.1, Vignyanakancha Post, Hyderabad - 500 069. The Programme Director, Advanced Naval System Programme, Ministry of Defense, Post Box No. 1, Vignyanakancha Post, Hyderabad- 500 069. 3. 4. ...RESPONDENTS Application filed under Section 11 (5) & (6) of the Arbitration and Conciliation Act, 1996. To appoint Independent Sole Arbitrator to adjudicate the Claims and Disputes between the Applicant and the Respondent arising out of the Contract Agreement No.DRDL/21/15(LV)/2017/0061/0044 dated 19.1.2018. ii) To award the costs of the Application. i) Counsel for the Petitioner : SMT MARELLA RADHA Counsel for the Respondents : SRI Y V ANIL KUMAR (CENTRAL GOVERNMENT COUNSEL) The Court made the following: APHC010241072024 Bench Sr.No:-6 [3441] IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI ARBITRATION APPLICATION NO: 15 of 2024 M/s. Resins And Allied Products ...Applicant Vs. The Union of India and others ...Respondents ********** Advocate for Applicant: Advocate for Respondents: Ms. Marella Radha Mr. Y. V. Anil Kumar (Central Government Counsel) CORAM :THE CHIEF JUSTICEDHIRAJ SINGH THAKUR : 4*'’ April, 2025. DATE PC : This is an application filed under Section 11 of the Arbitration and Conciliation Act, 1996, seeking reference of the disputes arising out of and in connection with Agreement, dated 19.01.2018, for adjudication, to arbitrator. an 2. The petitioner claims that disputes having arisen between the parties in connection with the Agreement in question, a resolution was sought in terms of the arbitration Clause 18 of the Agreement. 3. It is stated that a Notice, dated 25.01.2024, was sent by Registered Post with Acknowledgment Due invoking the arbitration Clause which was 2 HCJ^ ARBAPPL 15 2024 refused as per the report of the Postal Department. The applicant further claims that emails were sent to the respondents, invoking the arbitration clause, which were not responded to by the respondents. Learned counsel for the respondents has not denied the averments 4. made in the application regarding the factum of emails having been sent to the respondents invoking the arbitration clause as also the factum of refusal of the notice in their counter-affidavit. On the other hand, counsel for Union of India made a statement that they would be appointing a retired Judge of this Court as an arbitrator to adjudicate upon the disputes in terms of the arbitration agreement. 5. At this stage, it may be worthwhile to reproduce the arbitration Clause 18 of the Agreement: "CLAUSE 18 ARBITRATION 18.1 If any dispute shall arise concerning interpretation of the agreement of the performance of any provision of this agreement or any question relating there to, including any question as to whether this agreement a has been properly terminated by either party, as to which the parties cannot agree, such disputes shall be referred to Ministry of Defence, Department of Defence R&D_and the Chairman and Managing Director of the contractor for joint resolution. Any unresolved disputes will be settled in accordance with the Government instructions regarding resolution of disputes between government Departments and public Sector Enterprises.” 6. Reading of the aforementioned clause would make it clear that the same is not a very happily worded clause in the agreement. However, the fact that Clause 18.1 is figuring under the heading Arbitration and the fact that the respondents have not denied in their counter-affidavit that there did not exist 3 HCJ ARBAPPL_15 2024 any arbitration clause in the agreement, also the fact that the counsel for the Union of India has made a statement that they would appoint a retired Judge as an arbitrator to adjudicate upon the disputes between the parties goes to show that the respondents in fact admit the existence of the arbitration clause as also the existence of the disputes. 7. All that is stated in the counter-affidavit primarily is with regard to non existence of the agreement between the deponent, Vadde Chandra Sekhar, who it is stated was not a signatory to the Agreement. However, it can be seen that the agreement came to be executed was between M/s.Resins and allied products, on the one hand and the respondents. The deponent in the present application is the Administrative-In-Charge (HR) of the petitioner M/s.Resins and allied products and therefore, it cannot be said that there no agreement between the parties. was 8. Be that as it may, the present arbitration 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 Agreement, dated 19.01.2018, 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. 4 HCJ } ARBAPPL 15 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/- S.V.S.R.MURTHY JOINT REGISTRAR K //TRUE COPY// SECTION OFFICER To 1) Sri Justice A.V.Sesha Sai, former Judge of the High Court of Andhra Pradesh, R/o.Villa No.C-31,. Rain Tree Villas, Opp. Nagarjuna University Road, Namburu, Guntur District, Andhra Pradesh-522510 . Ph: 8331010693 (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 Smt Marella Radha, Advocate [OPUC] One CC to Sri Y V Anil Kumar (Central Government Counsel), Advocate [OPUC] 2) 3) 4) 5) The Union of India, Rep by its Secretary, Ministry of Defence, DRDO Bhawan, RajajiMarg, New Delhi, 100003. The Chairman, Defence Research and Development Organization DRDO, DRDO Bhawan, RajajiMarg, New Delhi, 100003. The Director, Advanced Naval Systems Programme, Ministry of Defense, Post Box No.1, Vignyanakancha Post, Hyderabad - 500 069. The Programme Director, Advanced Naval System Programme, Ministry of Defense, Post Box No. 1, Vignyanakancha Post, Hyderabad-500 069. The Section Officer, OS Section, High Court of Andhra Pradesh at Amaravathi. 6) 7) 8) 9) 10) Three CD Copies TK TAC . HIGH COURT DATED:04/04/2025 ORDER ARBAPPL.No.15 of 2024 f 2 2 MAY 2125 ALLOWING THE ARBITRATION APPLICATION