ARBAPPL/229/2024 of Jupudi Amareswara Rao, Vs ELLAR DEVELOPERS, on 13 April 2026

ORDER:

Heard Mr. V.R. Avula, learned Senior Counsel appearing on behalf of Mr. Rama Rao Kochiri, leamed counsel fbr the applicants; and Mr. Ashutosh B.Joshi, learned counsel fbr the respotrdents'

2. The instant Arbitration Apptication under Section I t (5) & (6) of the Arbitration and Conciliation Act, 1996 (fbr short the 'Act') has been filed by the applicants seeking for appointment of an Arbitrator to adjudicate upon the disputes that have arisen between the applicants and I'agc 2 ol' (r thc respondents pursuant to the Development Agreen'r rt-cum-Ceneral Power of Attorney dated 19.03.2019.

3. It is the case of the applicants that they are thc bsolute owners and possessors of land admeasuring Ac. 3.03 guntas in I urvey No.23316 located at Medipally P.M. Village, Ramagundanr N'lrr Ldal, Peddapatti District (hereinaflter referred to as the 'subject prope. "). In order to dcvelop the subject propefty, the applicants offered th, rcspondents to construct thc subject properry" into a gated residential r r lony taking into consideration their experience in construction work du r lbllowing the rules and regr.rlations. The said proposal was acceptcc and respondent No.l entercd into a Development Agreement-cum-( i neral Power of Attorney, dated I 9 03.20 I 9, witl-r the applicants and . r pudi Jayasimha, who owns Ac. 0.24 guntas in the subject property.

4. lt is thc further case ofthe applicants that the res; rndents pursuant to the development agreement dated 19.03.2019 oi: ained neccssary approvals ttom the authorities concemed and devel ,ped the sub-ject property by dividing the same into 99 plots providLr g arnenities and f.ry7 Page 3 ol'6 constructed houses above 50 plots. However, according to the development agreement the respondents are required to enter into a supplementary agreement of sharing of the houscs after obtaining necessary permissions and started alienating houses in lavour oF some third parties without prior consent of the applicants and when the applicants tried to contract the respondents, they avoided meeting for some rcason or the other.

5. lt is the lurther case of the appticants that left with no other option they filed Arb. O.P.No.23 of 2023. on the frle of the ChielJudge, City Civil Courts at Hyderabad. The Chief Judge, City Civil Court, vrde interim order dated 17.02.2023, directed both the parties to maintain status-quo till 13.03.2023 which was extended lrom time to time Thereafter, the applicants sent a [ega[ notice dated 08'07 202'1 to the respondents stating to comply with the claims raised within 30 days failing which Mr. S.Amarendar Reddy, Adovocate, would be appointed as an Arbitrator to adjudicate upon the disputes between the applicants and respondents.

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6. (ln the other hand, the respondents submit thet they havc fulty complied with the dcvelopment agreement dated l9.l i.20 l9 and they have obtained all thc necessary approvals from the colt,t med authorities. T'he respondents furthel subnrit that in view ofArb. () pNo.23 of2023 already being filed before the Chief Judge, Cit,\, livil Couns ar Hlderabad. the instant application under Section I I (5) & ((r) ol the Acr befbre this Court is not rnaintainable.

7. Undisputedly therc is an arbitration clause in he developntent asreement dated 19.01.20 l9 to resolve any disputes a .isine out ol' the agreement bv way o1-arbitration. It would be trite at thi .juncture to take note of thc arbitration clause i.c. clause (l) of the devel ) )ntcnt agreelnent datcd 19.01.20 l9 which for ready relerence is repro uced hercunder, vtt., '' ln cu.sr: ttf uttr ,li.spute ' dispute .t or conlrove r$, ari.\u: : oll of or rclotin,! to lhis ugreenant .thull be settlcd by arbitratit.r to bc held ul flylcrubatl u:' per the prutvi.sions of the Ar\ trutiott & Conc'iliution .,1ct. 1996 b), an arhin'al tribunal consi, ttg of ona orhitkrtor apytintad h_y- auch porl.t ond the third arbit., tor chosctt bt' lha ltto orbitrulors ' I I I I l I i li Il, l I I I I

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8. A plain reading ol the aforesaid clause makes it amply clear that any disputes arising out the development agreement have to be resolved by way of appointment of an Arbitrator in accordance with the provisions of the Act. Further, att the objections that the respondents havc can be raiscd 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.

9. 'fherefore, in the given factual circumstances of the case, this Court is inctined to appoint an arbitrator r'r'ho shall in turn decide the grievances and the claims raised by the applicants. In the course of the deliberation, leamed counsel for the parties accepted the suggestion of Hon'ble Sri Justice B.Prakash Rao, former Judge ol this High Court to be appointed as an Arbitrator and adjudicate the claim raised by the applicants. Accordingty, this Court appoints [{on'ble Sri Justice B.Prakash Rao, former Judge of this High Court Flat No.l00], l0'r' floor, Pegasus-A, Meenakshi Sky Launge, Khanamet, Hitech Exhibition Road, Hyderabad 500 084, Mobile No.9440760966) to act as an Arbitrator and to pass appropriate award in terms of the provisions of the Act' -fhe I'agc (; ol' (r venuc of the arbitration shall be decided mutually by tl' : parties sub.lcct to the consultation and agreernent of the learned Arbilr Ltor. The lees of the learned Arbih'ator also be decided mutuallv by th: parties again in consultation and agrecnrent with thc leamed Arb trator and the arbitration proceedings shall be govcmed in accc r lance with the provisions of the Act

10. The instarrt Arbitration Application accordingly st nds allowed Il. As a scquel. rnisccllancous petitions pending il any. shall stand closed. Lloir,evcr. there shall bc no order as to costs. S D/- B.SATYAVATHI JOINT REGISTRAR /TTRUE COPY// SECTION OFFICER SriB.PrakashRao,formerJudgeofHighCourtFlatllo1003,lOthfloor' Pegasus-A,MeenakshiskyLaunge,Khanamet'tlit:;hExhibitionRoad' Hyierabad - 500 084, Mobile No.9440760966) (By :ipecial Messenger) (Along with a Copy of affidavit and material papers) One CC to SRI RAMA RAO KOCHIRI' Advocate [OPUI) One CC to SRI ASHUTOSH B JOSHI, Advocate [OPU(] Two CD Copies (,-- To,

WADK'KA

HIGH COURT DATED: 1310412026

ORDER

ARBAPPL.No.229 ot 2024 ALLOWING THE ARBAPPL ( ot r{f 5 tfit 2026

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