Allowed

Sri. Raghavendra Enterprises v. M/S Mysore Stoneware Pipes and Potteries

Karnataka HC2 Sept 2022CMP/334/2022

Case brief

AI extract

What is this about?

The Single Judge appointed a former judge as sole arbitrator to adjudicate a dispute arising from an agreement of sale dated 04.03.2021 under Section 11(5) of the Arbitration and Conciliation Act, 1996, after the respondent admitted the arbitration clause.

What did the court decide?

Sole arbitrator appointed as Hon'ble Sri. Justice H.N. Nagamohan Das, Former Judge of this Court.

Sri. Raghavendra Enterprises Vs M/S Mysore Stoneware Pipes and… — Arbitration | Karnataka HC (2022)

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CMP No. 334 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 2^ND DAY OF SEPTEMBER, 2022

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BEFORE

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THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 334 OF 2022

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BETWEEN:

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SRI. RAGHAVENDRA ENTERPRISES A REGISTERED PARTNERSHIP FIRM HAVING OFFICE AT NO.91/2 4^TH MAIN, 13^TH CROSS NEAR GOVERNMENT GIRLS SCHOOL MALLESHWARAM, BENGALURU-560100 REPRESENTED BY ITS PARTNER MR. L.S. PRABHAKAR

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…PETITIONER (BY SRI. R.K. THONTADHARYA, ADVOCATE)

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AND:

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Digitally signed by POORNIMA SHIVANNA Location: HIGH COURT OF KARNATAKA

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M/S MYSORE STONEWARE PIPES AND POTTERIES LIMITED HAVING ITS REGISTERED OFFICE AT NO.452 11^TH CROSS, 6^TH MAIN, SADASHIVANAGAR BENGALURU-560080 REPRESENTED BY; MR. RAJIV H. RAMAHALLI EXECUTIVE DIRECTOR MR. H.N. SHIVANANJAIAH EXECUTIVE DIRECTOR

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…RESPONDENT

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(BY SMT. USHA S.NAIR, ADVOCATE)

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THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO SOLE ARBITRATOR TO ADJUDICATE THE DISPUTE ARISING OUT OF THE AGREEMENT OF SALE DATED 4^TH MARCH 2021 REGISTERED AS DOCUMENT NO.BYP-1-09513 HEREWITH PRODUCED IN ANNEXURE-D IN RESPECT OF THE CLAIMS AND CONTRA THAT MAY BE RAISED BY THE PETITIONER AND RESPONDENT BEFORE THE KARNATAKA ARBITRATION CENTRE, BENGALURU.

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CMP No. 334 of 2022

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THIS CMP COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioner is before this Court seeking for the following reliefs:

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“Wherefore the Petitioner herein respectfully pray that this Hon’ble Court be pleased to appoint any retired Judge of this Hon’ble Court as Sole Arbitrator to adjudicate the dispute arising out of the Agreement of Sale dated 4^th March 2021 Registered as Document No.BYP-1-09513 Herewith produced in Annexure D in respect of the claims and contra that may be raised by the Petitioner and Respondent before the Karnataka Arbitration Centre, Bangalore to serve the interest of justice and equity” .

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The petitioner and the respondent had entered into an agreement of sale dated 04.03.2021 wherein the petitioner had agreed to purchase the property subject matter of the petition. The said agreement is governed by an arbitration wherein Clause 11 is reproduced hereunder for easy reference:-

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“11. Jurisdiction and arbitration:

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In case of any inter se dispute between the parties during the subsistence of this Agreement of Sale, the same shall be resolved through the Courts in Bengaluru only and the Bengaluru Courts only have jurisdiction to try and dispose of the said dispute”.

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CMP No. 334 of 2022

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There being certain dispute between the parties, a notice dated 29.11.2021 came to be issued by the petitioner calling upon the respondent to comply with the obligations under the aforesaid agreement. Since the same was not complied with, proceedings were initiated under Section 9 of the Arbitration and Concliation Act, 1996 in Com.A.A.No.220/2021.

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Subsequently, the arbitration clause was invoked vide notice dated 18.12.2021 and the petitioner had nominated its arbitrator. The said notice having been served on the respondent, the respondent replied vide letter dated 03.01.2022 stating that the Chairman of the respondent was unwell and had sought for one month’s time to reply to the said notice. However, the respondent had admitted the execution of the agreement of sale and the arbitration clause therein requiring the same to be resolved by way of arbitration. Since no action was

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CMP No. 334 of 2022

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taken thereafter by the respondent, the petitioner has filed the present petition.

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Sri.R.K.Thontadharya, learned counsel for the petitioner would submit that the agreement not being in dispute, there being a lis between the parties, which is required to be adjudicated by way of arbitration and arbitrator may be appointed.

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Smt.Usha S.Nair, learned counsel for the respondent seeks for an adjournment. However, the same is rejected since in the reply notice a categorical admission is made about the existence of the agreement and requirement of reference to the arbitration.

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Having perused the papers, I am of the considered opinion that the arbitrator is required to be appointed to arbitrate the dispute between the parties. Therefore, I pass the following:

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ORDER

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i. The petition is allowed.

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CMP No. 334 of 2022

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ii. Hon’ble Sri.Justice H.N.Nagamohan Das, Former Judge of this Court is appointed as a sole arbitrator to arbitrate the dispute between the parties under the aegis of the Arbitration Centre attached to this Court.

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iii. Registry is directed to forward a copy of this order to the Director, Arbitration Centre for doing the needful.

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iv. All contentions are left open.

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Sd/JUDGE

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List No.: 2 Sl No.: 2

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Prs*

Sri. Raghavendra Enterprises v. M/S Mysore Stoneware Pipes and Potteries

Case brief

What is this about?

What did the court decide?

Sri. Raghavendra Enterprises v. M/S Mysore Stoneware Pipes and Potteries

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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