Allowed

We Work India Management Private Limited v. Consultadd Services Private Limited

Karnataka HC8 Sept 2021CMP/185/2021

Case brief

AI extract

What is this about?

The High Court of Karnataka, dealing with cross Civil Miscellaneous Petitions filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 by two companies, appointed a retired Judicial Member as the sole arbitrator due to their disagreement in appointing one, allowing the petitions.

What did the court decide?

Appointment of Sri M. Nagarajan as sole arbitrator to adjudicate disputes between the parties at the Arbitration and Conciliation Centre, Bengaluru.

We Work India Management Private Limited Vs Consultadd… — Arbitration | Karnataka HC (2021)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 08^TH DAY OF SEPTEMBER, 2021

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BEFORE

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THE HON'BLE MR. JUSTICE M. NAGAPRASANNA

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CIVIL MISCELLANEOUS PETITION No.185/2021

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C/W

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CIVIL MISCELLANEOUS PETITION No.204/2021

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IN CIVIL MISCELLANEOUS PETITION No.185/2021

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BETWEEN

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WE WORK INDIA MANAGEMENT PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT 1^ST FLOOR EMBASSY POINT, 150 INFANTRY ROAD BENGALURU – 560 001 REPRESENTED BY ITS AUTHORIZED SIGNATORY HIRANMAI RALLABANDI.

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... PETITIONER

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(BY MS. DHRITI VISHWANATH, ADVOCATE FOR SRI.SUNDARA RAMAN M.V., ADVOCATE (VIDEO CONFERENCING))

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AND

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CONSULTADD SERVICES PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 2013

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HAVING ITS REGISTERED OFFICE AT OLD NO.53, NEW NO.45/1 RAVINDRA NAGAR, KHARGONE MADHYA PRADESH – 451 001 REPRESENTED BY ITS MANAGING DIRECTOR.

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... RESPONDENT

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(BY SRI DINESH RAO N., ADVOCATE (VIDEO CONFERENCING))

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THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO

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A. APPOINT AN ARBITRATOR AS THIS HON'BLE COURT MAY DEEM FIT AND REFER THE DISPUTES RAISED BY THE PETITIONER TO ARBITRATION AS PROVIDED IN CLAUSE 8 OF ANNEXURE B DATED 31/08/2019. B. DIRECT THE RESPONDENTS TO PAY THE COSTS OF THESE PROCEEDINGS.

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C. GRANT SUCH RELIEF AS THIS HON'BLE COURT MAY DEEM FIT IN THE INTEREST OF JUSTICE AND EQUITY.

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IN CIVIL MISCELLANEOUS PETITION No.204/2021

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BETWEEN

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M/S CONSULTADD SERVICES PVT. LTD., REPRESENTED BY ITS CHIEF OPERATING OFFICER SRI SIDDHARTH GAWSHINDE S/O GIRISH GAWSHINDE, AGED ABOUT 44 YEARS HAVING REGISTERED OFFICE AT OLD-53, NEW 45/1, RAVINDRANAGAR, KHARGONE, MADHYA PRADESH – 451 001.

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... PETITIONER

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(BY SRI DINESH RAO N., ADVOCATE (VIDEO CONFERENCING))

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AND

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M/S WEWORK INDIA MANAGEMENT PRIVATE LIMITED REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER HAVING REGISTERED OFFICE AT HIGH GROUNDS 150, INFANTRY ROAD, SAMPANGIRAMA NAGARA, BASANTH NAGAR, BENGALURU – 560 001.

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ALSO AT 36 INFANTRY ROAD, BENGALURU – 560 001.

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... RESPONDENT

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(BY MS. DHRITI VISHWANATH, ADVOCATE FOR SRI.SUNDARA RAMAN M.V., ADVOCATE (VIDEO CONFERENCING))

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THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO

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i. APPOINT SRI. SUBHASH B. ADI, FORMER JUDGE OF HIGH COURT OF KARNATAKA, AS ARBITRATOR, OR ANY OTHER ADVOCATE OR PERSONS AS SOLE ARBITRATOR TO ADJUDICATE ALL THE DISPUTES THAT HAVE ARISEN BETWEEN THE PARTIES IN TERMS OF CLAUSE 8 OF WEWORK MEMBERSHIP AGREEMENT DATED 31/08/2019, COPY OF WHICH IS PRODUCED AS ANNEXURE-D.

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ii. PASS SUCH AD INTERIM ORDERS.

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iii. GRANT SUCH AND FURTHER RELIEFS AS THIS HON'BLE COURT MAY DEEM FIT TO GRANT UNDER THE CIRCUMSTANCES OF THE CASE.

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THESE CIVIL MISCELLANEOUS PETITIONS COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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CMP.No.185/2021 is by M/s.Wework India Management Private Limited and CMP.No.204/2021 is by M/s.Consultadd Services Private Limited, both under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of an Arbitrator in pursuance of Clause-8 of the Agreement dated 31.08.2019.

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Heard Ms. Dhriti Vishwanath, learned counsel appearing for M/s.We Work India Management Private Limited and Sri Dinesh Rao N., learned counsel appearing for M/s.Consult Add Services Private Limited and perused the material on record.

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Clause-8 is the Arbitration clause in the said Agreement, which read as under:-

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“8. ARBITRATION:

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a. Governing Law: This Agreement and the transactions contemplated hereby shall be governed by an construed under the laws of India without regard to conflicts of laws provisions thereof and without regard to the United Nations Convention on Contracts for the International Sale of Goods. Subject to resolution of

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disputes by arbitration, courts at the place where the Main Premises is located will have exclusive supervisory jurisdiction over matters arising out of this Agreement, especially for granting interim relief and enforcing arbitral awards.

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b. Venue: Any dispute, controversy or claim arising out of or in relation to this Agreement, or at law, or the breach, termination or invalidity of this Agreement, that cannot be settled amicably by agreement of the parties to this Agreement shall be finally settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996 (as amended from time to time), by one arbitrator mutually appointed by the Parties. The seat of arbitration shall be Bangalore, India and the venue of arbitration shall be Bangalore.

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c. Proceedings; Judgment: The proceedings shall be confidential and in English. The award rendered shall be final and binding on both parties. Judgment on the award may be entered in any court of competent jurisdiction. In any action, suit or proceeding to enforce rights under this Agreement, the prevailing party shall be entitled to recover, in addition to any other relief awarded, the prevailing party’s reasonable attorneys’ fees and other fees, costs and expenses of every kind in connection with the action, suit or proceeding, any appeal or petition for review, the collection of any award or the enforcement of

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any order, as determined by the arbitrator(s) or court, as applicable. This Agreement shall be interpreted and construed in the English language, which is the language of the official text of this Agreement.”

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In terms of the afore-extracted clause with regard to resolution of dispute by way of arbitration, in the event of any dispute or difference arising out of the agreement, the same is to be referred to a sole Arbitrator, who shall conduct the proceedings in accordance with the provisions of the Act.

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It transpires that the dispute arose between the parties. Pursuant to generation of such dispute, M/s.Consult Add Services Private Limited caused a legal notice on M/s.We Work India Management Private Limited on 30.06.2020, invoking the aforesaid clause with regard to arbitration. The legal notice was replied on 07.11.2020, declining the name suggested by the respondent. Therefore, the difference of opinion is only with regard to who should be appointed as an Arbitrator to arbitrate the dispute between the parties. The relief claimed by both the parties is appointment of an Arbitrator.

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In the light of existence of arbitration clause in the

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agreement as afore-extracted and in view of the difference of opinion between the parties in appointing the Arbitrator, I deem it appropriate to pass the following:

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ORDER

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[a] The petitions are allowed, appointing Sri M. Nagarajan, a retired Judicial Member, Central Adminsitrative Tribunal, No.12, Skandha Nivas, 2^nd Cross, Gundappa Gowda Road, Ejipura Viveknagar Post, Bengaluru - 560 047, [Mobile No.9945050654],

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as the sole Arbitrator to enter reference of the disputes between the parties and conduct proceedings at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the said Arbitration Centre.

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[b] All contentions inter se parties are left open for adjudication in the arbitration proceedings.

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[c] The Office is directed to communicate this order to the Arbitration and Conciliation Centre and Sri M. Nagarajan, a retired Judicial Member, Central Adminsitrative Tribunal, No.12, Skandha Nivas, 2^nd Cross, Gundappa Gowda Road, Ejipura Viveknagar Post, Bengaluru - 560 047, [Mobile No.9945050654], as required under the Arbitration and Conciliation Centre Rules, 2012.

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Sd/JUDGE

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nvj CT:MJ

We Work India Management Private Limited v. Consultadd Services Private Limited

Case brief

What is this about?

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We Work India Management Private Limited v. Consultadd Services Private Limited

Case brief

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What did the court decide?

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