Facts of the Case

This is a private commercial lease dispute, with an arbitrator being appointed under Section 11(5) of the Arbitration and Conciliation Act, 1996 — it has no connection to GST. Smt. Palaparthi Sitamahalakshmi Rao, owner of a property in Saroor Nagar, Hyderabad, had leased the first floor to M/s Food Haven India Private Limited (operator of a restaurant, 'La Saani (Riwayat)', a unit of Bade Miyan Kababs) under a lease deed dated 19.09.2018, for a monthly rent of Rs.3,45,000/-. Disputes arose regarding the tenancy, and the applicant sought appointment of a sole Arbitrator to adjudicate her claim of Rs.94,88,880/- against the respondent. The matter was decided on 25.04.2023.

Issues Involved

  1. Whether the dispute between the parties, arising from the lease deed, warranted appointment of a sole Arbitrator under Section 11(5) of the Arbitration and Conciliation Act, 1996.

Petitioner's Arguments

  • The applicant sought appointment of a sole Arbitrator to adjudicate her monetary claim against the respondent arising out of the lease deed dated 19.09.2018.

Respondent's Arguments

  • No specific opposing arguments on the appointment of an arbitrator are recorded in the order; the application appears to have proceeded largely unopposed on the question of appointment.

Court Order / Findings

  • The Telangana High Court appointed a named retired Principal District and Sessions Judge as the sole Arbitrator to adjudicate the dispute between the parties under the Arbitration and Conciliation Act, 1996, entitled to fees as per Schedule IV of the Act.
  • The Registry was directed to forward the order and relevant papers to the Arbitrator, and both parties were directed to appear before the Arbitrator and file their respective claim and written statements.
  • The Arbitration Application was disposed of, with no order as to costs.

Important Clarification

This order does not decide who is right in the underlying rent/lease dispute — it only appoints an Arbitrator to hear and decide that dispute, as is the limited scope of a Section 11 application. There is no GST question addressed in this order.

Sections Involved

  • Arbitration and Conciliation Act, 1996 — Section 11(5) (appointment of Arbitrator), Schedule IV (fee schedule)

Decision – In Favour of

Allowed to the limited extent of appointing a sole Arbitrator, as sought by the Applicant — the merits of the monetary claim were left entirely to be decided in the arbitral proceedings.

Case Details

High Court for the State of Telangana at Hyderabad | Arbitration Application No.143 of 2022 | Coram: Hon'ble Mrs. Justice Surepalli Nanda | Date: 25 April 2023.

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