Court Confirms Appointment of Independent Arbitrator After Parties Consent Under Arbitration and Conciliation Act, 1996
In a significant move, the Telangana High Court has appointed a former Acting Chief Justice, Sri Justice P. Naveen Rao, as an independent arbitrator to resolve a dispute between Cinepolis India Private Limited and Sree Thirumala Infra Private Limited. This decision comes after both parties consented to the appointment under Section 11(6) of the Arbitration and Conciliation Act, 1996, which allows for the appointment of an arbitrator by the court when parties are unable to mutually agree on one.
The conflict arises from a Memorandum of Understanding dated September 23, 2024, which contained an arbitration clause. Following a notice issued by Cinepolis on January 9, 2026, the respondent, Sree Thirumala, acknowledged the dispute but suggested a different arbitrator. Consequently, Cinepolis approached the court, leading to the current proceedings.
During a hearing on April 17, 2026, Mr. Aparesh Kumar Singh, Chief Justice of the Telangana High Court, proposed the appointment of Justice P. Naveen Rao, a former Acting Chief Justice of the court, as the arbitrator. The respondent’s counsel, on receiving instructions, consented to this proposal, paving the way for the appointment.
Justice Naveen Rao subsequently submitted his consent and a declaration as required under Section 12(1) of the Act, which mandates disclosure by the arbitrator regarding any potential conflicts of interest. The court, satisfied with the compliance, confirmed his appointment.
In delivering the order, Chief Justice Singh emphasized the need for the appointed arbitrator to adhere to the fee structure outlined in Schedule IV of the Act and to respect the time frame stipulated under Section 29A, ensuring a timely resolution to the dispute.
This decision underscores the court's role in facilitating arbitration processes and highlights the importance of adhering to statutory provisions to ensure impartiality and efficiency in resolving commercial disputes.
Bottom line:-
Arbitration - Appointment of an independent arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996 - Consent of parties obtained - Appointment of former Acting Chief Justice as arbitrator confirmed.
Statutory provision(s): Arbitration and Conciliation Act, 1996, Sections 11(6), 12(1), Schedule IV, Schedule VI, Section 29A
