ARBAPPL/190/2023 of M/s Classklap Private Ltd Vs M/s Swaramba Distributors on 5 May 2026

ORDER:

The instant Arbitration Application under Section ll(5) & (6) of the Arbitration and ConciliationAct, 1996 (for short the 'Act') has been filed by the applicant seeking for appointment of an Arbitrator to resolve the disputes that have arisen between the applicant and respondent in terms of the agreement dated 20.1,2.2018.

2. Heard Mr. D.Jaipal Reddy, learned counsel for the applicant. l

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3. It is the case of the applicant that it is a company dealing with supply of books and material and the respondent is a channel partner to whom the applicant supplies the books and materials. tn terms of the agreement dated 20.02.2018, the applicant used to supply books to the respondent, who in turn, supplied the same to various schools and the said supply continued without any disputes for the period starting from 27.02.2020 to 12.12.2020 amounting to Rs.89,01,260.36/-. Bills in this regard were also submitted, however only Rs.18,90,000/- was paid and books and materials worth Rs.37,52,033.94 were returned"

4. It is the further case of the applicant that after thorough scrutiny of the accounts and adjustments of returns, it was found that the respondent is still due to pay Rs.3 1,44,5661- and notice dated 29.09.2022 was served in this regard upon the respondent for payment of the aforesaid amount along with interest@ 18% from 17.11.2021. Since there was no response from the respondent's side to the said notice, the applicant issued another notice dated 25.03.2022, to which also the respondent did not respond.

5. It is the further case of the applicant that since there was no reply f,rom the respondent's side for the aforesaid two notices, finally the applicant issued notice dated 21.03.2023 invoking the arbitration clause in terms of the agreement entered into between the parties on20.02.2018 indicating the name of the Arbitrator and time of 30 days to respondent to the said notice. Yet again the respondent did not reply to the said notice or gave its consent. Therefore, left with no other option, the applicant has filed the instant Arbitration Application seeking for appointment of an Arbitrator to resolve the disputes.

6. Having heard the contentions put forth by the applicant and on perusal of records, undisputedly there is an arbitration clause in the agreement dated 20.02.2018 to resolve the disputes between the parties by way of arbitration. It would be trite at this juncture to take note of the arbitration clause which is reflected in the agreement dated 20.02.2018. For ready reference, the arbitration clause i.e. clause 19 of the agreement dated 20.02.2018 is reproduced hereunder, viz., " I 9. Dispute Resolution It shall be endeavor of the Parties inure to the benefit of this Agreement. In the course of execution of this Agreement all or any misunderstanding or dispute should ideally be settled amicably through discussion omong the Parties. In the event no such amicable settlement arrived, this Agreement sholl be interpreted acc'ording lo the laws of India and such dispute shall be re.fbrrcd to un arbilration under Indian Arbitration Act, t996."

7. A plain reading of the aforesaid clause makes it amply clear that any dispute arising out of or relating to the agreement has to be resolved by way of negotiations and still if the dispute stands unresolved, the same has to be referred to arbitration. Furthermore, aU the objections that the parties have can be raised before the Arbitrator, which the Arbitrator is expected to take note of, and decide the same after hearing both the sides in accordance with law.

8. In the given factual circumstances of the case, this Court is inclined to appoint an Arbitrator, who shall,-in tum decide the grievances and the claims raised by the applicant and respondent. [n the course of the deliberatign, learned counsel for the parties accepted the suggestion of Mr. D. Ravindra Sharma, Retired'District Judge to be appointed as an Arbitrator. Accordingly, this Court appoints Mr. D. Ravindra Sharma (Retired District Judge, Flat No.20l, Vaishnavi Apartments, H.No.l3-10- /

95, New Daddiannaram, Hyderabad - 500 060, Mobile No.9848790929) to act as an Arbitrator and to pass appropriate award in terms of the provisions ol the Act. The venue of the arbitration shall be decided mutually by the parties subject to the consultation and agreement of the Arbitrator. The fees of the learned Arbitrator also be decided mutually by the parties again in consultation and agreement with the Arbitrator and the arbitration proceedings shall be governed in accordance with the provisions ol'the Act.

9. The instant Arbitration Application accordingly stands allowed. To,

10. As a sequel, miscellaneous petitions pending if any, shall stand closed. Howcver, there shall be no order as to costs. SD'- M.VIJAYA BHASKER JOINT REGISTRAR /,TRUE COPY" SECTION OFFICER

1. Mr. D. Ravindra Sharma (Retired District Judge, Flat No.201 , Vaishnavi Apartments, H.No. 13-10- 95, New Gaddiannaram, Hyderabad - 500 060, Mobile No.9848790929) (By Special Messenger) (AIong with a Copy of affidavit and material papers)

2. One CC to SRI D JAIPAL REDDY, Advocate IOPUCI

3. Two CD Copies M ADK/KA

( HIGH COURT DATED: 05/0512026

ORDER

ARBAPPL.No.190 of 2023 ALLOWING THE ARBAPPL WITHOUT COSTS 5TA --*--.-- PAT

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