Arbitrator is not equal to a court: High Court

 The Hyderabad High Court has held that an arbitrator is not equal to a court and does not have all the powers that are vested in a civil court.

While allowing a civil revision petition, the High Court said “this court is of the opinion that the lower court committed an error in referring the parties to arbitration, when a third party is included as a defendant in the suit.”A division bench comprising Justice C.V. Nagarjuna Reddy and Jus-tice D.V.S.S. Somayajulu was allowing a civil revision petition by D. Muralidhar Rao questioning the order of the XV Additional District Judge, Ranga Reddy district at Miyapur, referring the parties to arbitration

The petitioner Murali-dhar Rao entered into an agreement with builder D. Papa Rao to develop 1,136.20 square yards in Madhapur on August 17, 2007. They entered into another agreement on June 28, 2009 with Mr Papa Rao’s firm Srini-vasa Constructions for the same. After the building was constructed, it was given on rent to Suyosha Health Care  (the third defendant). Later, the petitioner filed a suit in the lower court contending that his  agreements with Mr Papa Rao and his firm and also the lease deed in favour of Suyosha Health Care as invalid as they  are  not  properly  stamped or registered.

He urged the court to declare Suyosha as  his tenant  and as a result direct it to  pay him rent along with arrears  with  effect  from  October 1, 2015 to April 30, 2016.He also sought a permanent    injunction  restrai-ning Mr Papa Rao or his firm  in matters relating to the said building.After hearing both the parties, the bench said when alll operations and obligations are spelt out again in the new agreement and when the third party entered into the dispute, it is for the civil court to decide the suit on merits.