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2025 DAILYLAW 9765 (AP)

M/S ENVIROCARE v. STATE OF ANDHRA PRADESH

ARBAPPL/7/2024 · 2025-03-21

Dhiraj Singh Thakur

body2025

Judgment text

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAV FRIDAY ,THE TWENTY FIRST DAY OF MARCH ( ^ TWO THOUSAND AND TWENTY FIVE PRESENT HON’BLE SRI JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE ARBITRATION APPLICATION NO: 7 OF 2024 Between: M/s Envirocare, Rep.by its Partner, Sri.Shailendra Kumar Srivatsava, S/o.Lal Bahadur Srivastav, Aged about 62 years, Occ Business, Having registered office at 701, DLF Tower-A, Jasola, New Dehli-110025, R/o.S- 485, 3rd Floor, Greater Kailash-2, New Delhi- 110048. ...Applicant AND 1. State of Andhra Pradesh, Rep. by its Principal Secretary to Government, Municipal Admnistration and Urban- Development Department, Secretariat, Velagapudi, Amaravati, Guntur Dsitrict. 2. The Vijayawada Municipal Corporation, Rep. by its Commissioner, Vijayawada City, NTR District ...Respondents Arbitration Application filed under Sub-Secs (5&6) of Section 11 of the Arbitration and Conciliation Act, 1996 read with Para 3 (i) (c) of the Scheme for appointment of Arbitrators,2006 as framed by the High Court Amaravathi praying that the High Court may be pleased to appoint Sri. Ravi Shankar Srivastava, IAS, R/o.96, Gokul Vatika, JLN Marg, Near Jawahar Circle, Jaipur, Rajasthan State-302018, as an arbitrator in terms %r' of the Arbitration Clause in the agreement dated 21.08.2018 for adjudication of the claims and disputes between the Applicant and Respondent. Counsel for the Petitioner: Sri. Naga Praveen Vankayalapati Counsel for the Respondent No.l: --- Counsel for the Respondent No.2: SRI J DILEEP KUMAR The Court made the following Order: Bench Sr.No:-34 [3441] APHC010108872024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI ARBITRATION APPLICATION NO: 7 of 2024 ...Applicant M/s Envirocare Vs. ...Respondent(s) State Of Andhra Pradesh and Others ********** Mr. Naga Praveen Vankayalapati Mr. J Dileep Kumar Advocate for Applicant: Advocate(s) for Respondent(s): CORAM :THE CHIEF JUSTICE DHIRAJ SINGH THAKUR DATE : 21®* March 2025 PC : This is an application filed under Section 11 of the Arbitration and Conciliation Act, 1996, for referring the disputes for adjudication which arise out of and in connection with the Agreement, dated 21.08.2018. 2. The applicant claims that it entered into an Agreement, dated 21.08.2018, with the respondent for preparation of a Detailed Project Report for the restoration and purification of three existing canals located within the jurisdiction of the respondent Vijayawada Municipal Corporation. It is stated that in terms of the Letter of Award, dated 14.08.2018, the work was completed as was envisaged, which was 2 HCJ Arb_Appl_7_2024 relevant to the stages of works mentioned in the Letter of Award and further that three invoices were issued for payment to the respondents. It is stated that the applicant had received only part of the amount, which was due and payable and that still an amount of Rs.54,83,023/- along with 24% interest was due and payable by the respondent. Dispute having arisen between the parties, it is stated that request was made for referring the same for adjudication in terms of the arbitration clause 3.8.3. Learned counsel lor the applicant submits that it is only on account of the failure of the respondents to follow the agreed terms of the dispute resolution clause that the present application has been filed. 3. In the counter-affidavit, the stand taken is that the arbitration clause would be applicable only if the applicant had completed the services as per the Agreement and since it had failed to do so, the 4. reference was not justified. Heard learned counsel for the parties. 5. 6. Admittedly, there is a dispute, which has arisen between the parties arising out of and in connection with the Agreement, dated 21.08.2018, which is required to be resolved through the mechanism of 3 HCJ Arb_AppL7_2024 arbitration in terms of the arbitration clause. Although the arbitration clause envisages the appointment of an Arbitrator by each of the parties, yet learned counsel for the parties agree that considering the amount involved, the dispute be referred only to a sole Arbitrator. Be that as it may, the present application is allowed. Justice R. Kantha Rao, former Judge of the erstwhile 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 21.08.2018, 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 7. 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. Pending miscellaneous applications, if any, shall stand closed. No costs. A copy of this order be communicated to the learned Arbitrator on the address mentioned herein below; Justice R. Kantha Rao Flat No. 101, 1^* Floor, Vamshi Valley View 4 HCJ Arb_AppL7_2024 Jubilee Hills, near Apollo Hospital Hyderabad - 500 033 Mobile: 94409 01082 Sd/- S.V.S.R.MURTHY JOINT REGISTRAR S^JONOFFICER //TRUE COPY// To. 1. Sri Justice R.Kantha Rao, Flat No. 101, 1®* Floor, Vamshi Valley View, Jubilee Hills, near Apollo Hospital, Hyderabad- 500 033, Mobile ; 9440901082 (along with a copy of Arbitration Application Affidavit and all material papers filed along with Arbitration Application) 2. The Registrar(Judicial), High Court of Andhra Pradesh at Amaravathi 3. The State of Andhra Pradesh, Rep. by its Principal Secretary to Government, Municipal Admnistration and Urban- Development Department, Secretariat, Velagapudi, Amaravati, Guntur Dsitrict. 4. The Commissioner, Vijayawada Municipal Corporation, Vijayawada City, NTR District 5. One CC to Sri. Naga Praveen Vankayalapati Advocate [OPUC] 6. One CC to Sri J Dileep Kumar, Advocate.[OPUC] 7. The Section Officer, OS Section, High Court of Andhra Pradesh at Amaravathi 8. Three CD Copies Stu vna HIGH COURT DATED:21/03/2025 ORDER X APR 2025 a P,^ . Current becuon ARBAPPL.No.7 of 2024 ALLOWING THE ARBITRATION APPLICATION