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2018 (11) TMI 1688

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..... m of the remaining three societies contained a clause for reference of disputes between the owners and the society to an arbitrator. The Court below has rightly declined to refer the dispute raised by respondent No.1 to Arbitral Tribunal - Appeal dismissed. - C.M.A. Nos. 1257, 1379 And 1380 of 2017 - - - Dated:- 22-11-2018 - SRI JUSTICE C.V. NAGARJUNA REDDY AND SRI JUSTICE T.AMARNATH GOUD For the Appellant : Mr. P.Veera Reddy, senior counsel, Mr.N.Sri Hari For the Respondent : Mr.D.Prakash Reddy, senior counsel, for Mrs. Varalakshmi Tadepalli for R1, Mrs.P.V.Aruna Kumari for R2, Mr.G.Subhash, Mrs. A.Anasuya for R1 to R3 Common Judgment: (Per the Hon ble Sri Justice C.V.Nagarjuna Reddy .....

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..... resolving the dispute among the parties. Respondent No.1 resisted the said applications on the ground that there is no provision for settling the disputes between it and the owners through arbitration. The court below accepted the plea of respondent No. 1 and dismissed the I.A.s. 5. The core issue, which engaged the attention of the lower court and which arises before this Court, is whether Clause-19 of the Addendum to the Supplemental Development Agreement, encompasses a dispute between appellant No.1, which is a society, and the owners, within the meaning of the said agreement. For proper appreciation, Clause-19 is reproduced herein: The owners agree that any dispute between the Owners, including the dispute relating .....

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..... shall be from the office bearers of their respective Societies and the two or more arbitrators so appointed shall appoint a presiding arbitrator, who shall be one of the office bearers of the Hitech City-2 Owners Welfare Association (HOWA) and the Chairman of the arbitral tribunal; and the venue of arbitration shall be in Hyderabad, India. (e) I the event of any dispute which involves two or more Owners of the space in the same building, the arbitral tribunal shall comprise of the sole arbitrator. In such a situation, each party to the dispute shall refer the matter to the office bearers of their respective Society which shall be the arbitral tribunal; and the venue of arbitration shall be in Hyderabad, India. (f) The Pa .....

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..... he agreement. Thus, the second limb is not a self contained one in order to know as to the nature of disputes and the parties among whom such disputes have to be referred to arbitration. To know the same, one has to necessarily fall back on Subclauses-( a) to (g). Under Sub-clause-(e), on which the learned senior counsel for the appellants placed heavy reliance, any dispute which involves two or more owners of the space in the same building shall be referred to an Arbitral Tribunal comprising the sole arbitrator. The expression owner is applied to eight individuals falling under first part. Admittedly, appellant No.1 falls under third part and is described as co-developer . Thus, Sub-clause-(e) does not cover the disputes betwe .....

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