AMARAVATI, India, May 15 -- Andhra Pradesh High Court issued the following order on April 10:
1. This is an application filed under Section 11 (5) of the ArbitrationandConciliation Act, 1996 (for short, "the Act of 1996"), seeking the appointment of an arbitrator for purposes of adjudicating the disputes arising out of andinconnection with the Development Agreement-cum-Irrevocable General Powerof Attorney, entered into between the parties, dated 19.04.2021.
2. The applicant's case is that it entered into Development Agreement-cum-Irrevocable General Power of Attorney with a view to developanopenland measuring Acs.3.392 cents, situate in Survey Nos.113/2, 113/4at Gunadala Village in Krishna District to build a modern multi-storiedresidential apartment complex.
3. It is stated that the applicant undertook the development activityafterobtaining the requisite approvals from statutory bodies and completedtheproject.
4. It is stated that as per the terms and conditions of the agreement, respondents were allotted specific residential flats correspondingtotheirownership shares in the developed property.
5. It is stated that as per the terms and conditions of the Development Agreement and in particular Clause 34 thereof, the parties had agreedthat Sales Tax/V.A.T./Service Tax or G.S.T. or any statutory levies of theStateorCentral Governments, levied or to be levied in future, with respect tothedevelopment would be borne by the landlords and developers proportionatelybut through the builder only, as the builder would act as G.S.T. dealer asperthe statutory provisions.
6. It is stated that the total G.S.T. liability which has been determinedaspayable, is approximately Rs.90,37,560/- as on 29.10.2025. It is statedthat the respondents were under a contractual obligation to dischargetheirrespective liabilities through the applicant.
7. A notice, dated 20.01.2026, invoking the arbitration clause, is statedtohave been served upon the respondents, which did not elicit thedesiredresponse from the respondents, and hence the present Arbitration Application.
8. Learned counsel for the respondents, however, does not deny either theexistence of a dispute or the arbitration Clause 38 in the agreement, whichenvisages the resolution of disputes through the mechanismof arbitration.
9. Be that as it may, disputes having arisen between the parties, thesameare required to be resolved through the mechanism of arbitration, aswasagreed to between the parties. The present arbitration applicationisaccordingly allowed. Mr. L. Ravichander, Senior Advocate, is appointedasanArbitrator, who shall enter upon the reference and adjudicateuponthedisputes arising out of and in connection with the Development Agreement-cum-Irrevocable General Power of Attorney, between the parties, dated19.04.2021 and render the Award within the statutory period. The partiesshall be free to file detailed claims and counter-claims, before the learnedArbitrator.The learned Arbitrator shall also be entitled to claim the fee in consultationwith the parties. No costs. Consequently, pending miscellaneous applications, if any, shall stand closed. A copy of this order be communicated to the learned Arbitrator ontheaddress mentioned herein below: Mr. L. Ravi Chander, Senior Advocate, Road No.3, Ashok Nagar, Himayatnagar, Chikkadpally, Hyderabad - 500 020. Ph: 98480 41597
Disclaimer: Curated by HT Syndication.
