APHC010133732023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI ARBITRATION APPLICATION NO: 27 of 2023 Bench Sr.No:-20 [3441] Gunti Nageswara Rao ...Applicant Vs. Kalpataruvu Hydal Projects Private Limited and others ...Respondents ********** Advocate for Applicant: Mr. Dr. Sastry Jandhyala Advocate for Respondents: Mr. Ghanta Sridhar CORAM : THE CHIEF JUSTICE DHIRAJ SINGH THAKUR DATE : 12th September, 2025. P C : This is an application filed under Section 11 of the Arbitration and Conciliation Act, 1996, for referring the disputes to an Arbitrator in terms of Clause 32 of the Memorandum of Association, which envisages that in case of a dispute between the Company and any other Company, firm, or individual, the same is to be resolved through the mechanism of arbitration. 2. The claim of the petitioner is based on the premise that he holds 30% share in the Company and that respondents were not distributing the profits of the Company for the last 10 years, on one pretext or the other. Efforts to demand the statement of accounts also have not elicited any result. 2 HCJ ARBAPPL_27_2023 3. A notice invoking arbitration clause, dated 24.10.2022, was served upon the respondents, which was acknowledged inasmuch as a reply notice, too was served, to the said notice. 4. The stand of the respondents as is reflected from the counter-affidavit is that there is no Company existing in the name and style of Kalpataravu Hydel Projects Private Ltd. and that either the applicant or one Mr. Siva Sankar Reddy, had nothing to do with the properties, which were purchased with the funds belonging to the respondents, as alleged by the applicant by virtue of his notice dated 05.01.2023. In the response filed by the respondents, it has generally been denied that no disputes have arisen between the parties, which are otherwise required to be referred for adjudication to an Arbitrator and that the applicant has absolutely no right or interest to claim any amount from the answering respondents. 5. There is no dispute with regard to the existence of an arbitration clause and since disputes have arisen, the same are required to be resolved through the mechanism of arbitration as has been agreed to by the parties in terms of Clause 32 of the Memorandum of Association. 6. Be that as it may, the present arbitration 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 3 HCJ ARBAPPL_27_2023 Memorandum of Association 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, in this case, 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: #83310 44099 DHIRAJ SINGH THAKUR, CJ. SSN