Allowed

Dr K N Satish v. Nagson and Co.

Karnataka HC15 Nov 2022CMP/656/2022

Case brief

AI extract

What is this about?

The Court allowed a civil miscellaneous petition filed under Section 11(5) of the Arbitration and Conciliation Act 1996 to appoint a sole arbitrator for disputes arising from partnership deeds between the petitioner and the respondents, despite reservations regarding arbitrability of outgoing partners and limitation.

What did the court decide?

Petition allowed; Mr. Justice V. Jagannathan appointed as sole arbitrator; Registry directed to communicate order.

Dr K N Satish Vs Nagson and Co. — Arbitration | Karnataka HC (2022)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 15^TH DAY OF NOVEMBER 2022 BEFORE

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THE HON’BLE MR. JUSTICE B. M. SHYAM PRASAD

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CIVIL MISCELLANEOUS PETITION NO.656/2022

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BETWEEN :

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DR K N SATISH AGED ABOUT 69 YEARS, S/O LATE K.N. NAGARAJ, RESIDING AT NO.593/3, 11^TH MAIN ROAD, MALLESHWARAM, BANGALORE-560003.

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... PETITIONER

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(BY SRI. SRINIVASA RAGHAVAN, SENIOR ADVOCATE FOR SMT. NAYANA TARA B.G., ADVOCATE)

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AND:

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NAGSON AND CO BEING A PARTNERSHIP FIRM, HAVING ITS PLACE OF BUSINESS AT NO.42, 3^RD CROSS, INDUSTRIAL SUBURB YESHWANTHPUR, BANGALORE-560022. REPRESENTED BY ITS MANAGING PARTNER, SRI.K.N. BALASUBRAMANYAM.

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SRI K N BALASUBRAMANYAM AGED ABOUT 67 YEARS, S/O LATE SRI.K.N. NAGARAJ, MANAGING PARTNER, NAGSON AND CO.

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SMT K N SUDHA AGED ABOUT 70 YEARS, D/O LATE SRI K N NAGARAJ, PARTNER NAGSON AND CO.

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SMT K N RAJALAKSHMI AGED ABOUT 65 YEARS, D/O LATE SRI K N NAGARAJ, PARTNER, NAGSON AND CO.

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RESPONDENT 2 TO 4 THEIR OFFICE AT NO.42, 3^RD CROSS, INDUSTRIAL SUBURB, YESHWANTHPUR, BANGALORE-560022.

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... RESPONDENTS

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(By SRI.MALLIKARJUN N.K., ADVOCATE FOR SRI. SAMPATH A., ADVOCATE)

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THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT A SOLE ARBITRATOR TO ADJUDICATE ALL DISPUTES BETWEEN THE PARTIES IN TERMS OF THE ARBITRATION CLAUSE CONTAINED IN PARTNERSHIP DEED DATED 21/10/1975, FIRST RECONSTITUTED DEED DATED 01/01/1983, SECOND RECONSTITUTION DEED DATED 21/12/2009 AND THIRD RECONSTITUTION DEED DATED 01/12/2016 PRODUCED AT ANNEXURE-A TO ANNEXURE-D RESPECTIVELY.

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

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O R D E R

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Sri Srinivasan Raghavan, the learned Senior

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counsel who appears for Smt. Nayana Tara B.G. who is on record for the petitioner, and Sri.Mallikarjun N.K., learned counsel who appears for Sri A.Sampath who is on record for the respondents, are heard.

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The respondents do not dispute that they are parties to the subject partnership deeds but propose to oppose the petition contending that the petitioner's claim is not arbitrable because an " outgoing/retiring partner " would not be a " partner " as contemplated in the arbitration clause that is part of the partnership deeds and the petitioner's claim is bared by limitation. However, it is not canvassed that the petitioner's claim could be called " a deadwood" at this stage.

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In the aforesaid circumstances, this Court is of the considered view that the petition must be allowed appointing the sole arbitrator to enter reference of the dispute leaving all the contentions open to be urged before the sole arbitrator. As such, the following:

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ORDER

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a] The petition is allowed;

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[b] Hon'ble Mr. Justice V Jagannathan, a former Judge of this Court, Address: PRIDE ENCHANTA, No.003, Ground Floor, 4th Block, Opposite to BHEL Main Gate, Mysore Road, Bengaluru - 560026, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and the respondents and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the

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Rules governing the Arbitration and Conciliation Centre (Domestic and

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International), Bengaluru;

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[c] The Registry is directed to

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communicate this order [by E-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and also to Hon'ble Mr. Justice V Jagannathan, a former Judge of this Court, as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996.

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Sd/JUDGE

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SA/-

Dr K N Satish v. Nagson and Co.

Case brief

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Dr K N Satish v. Nagson and Co.

Case brief

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