Authority: High Court for the State of Telangana at Hyderabad

Order Date: 10 July 2026

Case Overview

  • Applicants: Safe Super Speciality Hospitals and two others (lessees)
  • Respondents: Syed Amer Mohiuddin and another (lessors)
  • Lease Deed dated 18 August 2021 for premises at Medak, containing Arbitration Agreement in Clause 16.
  • Dispute arose over alleged non‑payment of rent arrears of Rs 60 lakhs; respondents issued a legal notice on 1 August 2024 demanding payment and vacating the premises.
  • Applicants claim they did not receive the notice and contend the notice is unsigned and lacks proof of service.
  • Applicants sent a notice invoking arbitration on 26 May 2025, which was delivered to respondents; respondents replied on 24 June 2025, acknowledging breach of lease but stating no dispute over lease terms.
  • Respondents objected to appointment of arbitrator, arguing the arbitration agreement terminated in 2024 due to rent default and that no live dispute existed.

Court Reasoning

  • Court held that respondents themselves raised the rent arrears issue in their 1 August 2024 notice and demanded cancellation of the lease, indicating a live dispute.
  • Respondents’ 24 June 2025 reply admits breach of lease and refers to the subsisting lease, contradicting their claim of no dispute.
  • Applicants also allege that respondents failed to complete construction and essential works, delaying hospital setup, and that applicants have invested approximately Rs 1,12,81,556/- crores.
  • Court concluded that a live dispute exists as of the arbitration notice date and that the arbitration agreement in Clause 16 is subsisting, warranting appointment of an arbitrator.

Final Outcome

  • Arbitration Application No. 129 of 2025 is disposed of by appointing S. Veda Vidyanatha Reddy, Retired District Judge, as the sole arbitrator.
  • Parties must appear before the arbitrator on 20 July 2026 at 11:00 A.M. with a copy of the order.
  • The arbitrator will conduct proceedings in accordance with law; parties may raise all contentious issues.
  • Arbitrator’s fee and other terms to be settled by the parties in consultation with the arbitrator.

Topics: Arbitration, Lease Dispute