Pratap Health And Foods (India) Pvt. Ltd. v. Hindustan Unilever Limited

\ 133741

IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD FRIDAY ,THE EIGHTH DAY OF NOVEI/IBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE THE CHIEF JUSTICE ALOK ARADHE ARBITRATION APPLICATION NO: 205 OF 2024 Between:

Pratap Health and Foods (lNDlA) Pvt. Ltd., Having its Office at 8-2-573, Road No.7 Banjara Hills, Hyderabad, Telangana Represented by its Director, Dodla Divya Reddy ...Applicant AND Hindustan Unilever Limited, Unilever House, B D Sawant Marg Chakala, Andheri East Mumbai, Maharashtra 400 099, Represented by its Authorized Representative

...Respondent

Arbitration Application filed under Section 1 1(6) of the Arbitration and Conciliation Act, 1996 R/w Scheme fo Appointment of Arbitrators, 2000 praying that this Hon'ble Court may be pleased to i. Appoint a sole arbitrator under Section 11 (6) of the Arbitration and Conciliation Act, 1996 read with para 3(c) of the Scheme of Appointment of Arbitrators, 2000 for adjudication of the claims and disputes that arose between the Applicant and Respondent under HUL Purchasing Agreement dated '19th May 2021 forming part of the Contract Documents executed between the Parties and for such other claims that may be raised before the Arbitral Tribunal compris.ing of panel of three arbitrators.

ii. Award the costs of this application in favour of the Applicant. Counsel for the Applicant : Mr. Alay H Razvi Counsel for the Respondent : Mr. S. Leo Raj The Court made the following: ORDER -"i*rdiii;3.-.

==-7/ // THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE ARBITRATION APPLICATION No.2OS of 2024 ORDER:

Mr. Alay H Razvi, learned counsel for the applicant. Mr. S.Leo Raj, learned counsel for the respondent. 2.

This application is filed under Section 1l(6) of the Arbitration ald Conciliation Act, 1996 (hereinafter referred to as "the Act"). The applicant seeks appointment of an arbitrator to resolve the dispute between the parties. 3.

The parties have entered into HUL Purchasing Agreement dated 19.05.2001. Clause 21 thereof contains an arbitration clause and the same is extracted below lbr the facility of reference:

"21. Alternate Dispute Resolution 27 .I. ln the event of any dispute that remains unresolved for a period of 30 days, the Party aggrieved shall submit the dispute for mediation to be \- administered by an independent Arbitrator appointed by mutua-l agreement who shall be a retired judge of

eminence alld repute. The arbitration proceedings shall be governed by the Arbitration and Conciliation Act 1996. The venue of arbitration shall be at Hyderabad, Telangana State. This provision shall continue in full force and effect subsequent to and notwithstanding expiration or termination of this UPA."

4 .

In a proceeding under Section 1 1 (6) of the Arbitration Act, this Court has to satisfy itself whether underlying contract contains an arbitration agreement which provides for arbitration pertaining to disputes which have a-risen between the parties. It is pertinent to note that the respondent has not disputed the execution of the HUL Purchasing Agreement dated 19.05.2001 which contains an arbitration clause. It is trite law that an arbitration clause which forms pa-rt of the contract shall be treated as an agreement independent of other terms of contract and the arbitration clause survives notwithstanding expiry of the agreement (see Reva Electric Car Company Private Limited vs.

Freen Mobill, A.Ayyasamy vs I (2012) 2 SCC 93

A.Paramasivamz and Vidya Drolia vs. Durga Trading Corporations) .

5. In the instant case, the applicant invoked the arbitration clause and sent a notice under Section 2l of the Act dated O2.O4.2O24 to the respondent and the respondent filed a reply on 12.04 .2024.

6.

The dispute that has arisen between the parties needs to be resolved in the manner agreed to by the parties under HUL Purchasing Agreement dated 19.05.2001. 7.

The parties have no objection if the sole Artritrator is appointed.

8.

In view of aforesaid submission ald taking into account the fact that admittedly an agreement namely HUL Purchasing Agreement dated 19.05.2001 exists between the parties, which has an arbitration clause, Mr. Justice Challa Kodanda Ram, a former Judge of this Court (resident ,rf plot No.68, Road No.71, Phase III, Jubitee Hills, Hyderabra.d-34; Mobile No.833101O695) is appointed as sole arbitrator to 2 (2016) tO SCC 386 i (2021) 2 SCC t

adjudicate the dispute between the parties. The parties shall appear before the Arbitrator on 23.11.2024 at 11.00 A.M. along with a copy of this order. Thereupon, the sole arbitrator shall proceed with the arbitral proceedings in accordance with law.

9.

Accordingly, the Arbitration Application 1S allowed.

Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs. Sd/- M. VIJAYA BH JOINT REGI KER TRAR //TRUE COPY// SECTION OFFICER To,

1. Mr. Justice Challa Kodanda Ram, former Judge of Telangana High Court (resident of Plot No.68, Road No. 71, Phase lll, Jubilee Hills, Hyderabad-34; Mobile No. 8331010695) (By Special messenger) (along with a copy of affidavit and material papers)

2. One CC to Mr. Alay H Razvi, Advocate [OPUC]

3. One CC to Mr. Leo Raj, Advocate [OPUC]

4. Two CD Copies Njb/gh gr

HIGH COURT DATED:0811112024 \ e s l-41 €'

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.\i-, t)rJ 18 I'IEU 2mt -l .lORDER ARBAPPL.No.205 ot 2024 ALLOWING THE ARBITRATION APPLTCATION G.sd'l\ w €.('^