Allowed

V B Medicare Private Limited v. M/S Chemmannur Polymer Products

Karnataka HC10 Oct 2023CMP/137/2023

Case brief

AI extract

What is this about?

Civil Miscellaneous Petition under Section 11 of the Arbitration and Conciliation Act, 1996 filed to appoint an arbitrator. The court appointed the petitioner's nominee as a sole arbitrator despite the agreement for three, considering the nature and cost of the dispute.

What did the court decide?

The petition is allowed. Hon'ble Sri. Justice P Krishna Bhat is appointed as the Sole Arbitrator.

V B Medicare Private Limited Vs M/S Chemmannur Polymer Products — Arbitration | Karnataka HC (2023)

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10^TH DAY OF OCTOBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 137 OF 2023

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BETWEEN:

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V B MEDICARE PRIVATE LIMITED A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT BHAVANAM KOTESWARRY HOUSE NO.10-283/2, OPP HIG 91 NEAR LAHARY APARTMENT BHARAT NAGAR COLONY RANGAREDDI, HYDERABAD-500018.

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Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA

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ALSO HAVING ITS INDUSTRY AT PLOT NO.59, 61, 62, 63, 66A AND 67 SIPCOT INDL.AREA PHASE II KRISHNAGIRI ROAD HOSUR-635109 REPERSENTED BY ITS DIRECTOR MR AVS GANESAN.

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…PETITIONER

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(BY Smt. YOVINI RAJESH ROHRA.,ADVOCATE)

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AND:

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M/S CHEMMANNUR POLYMER PRODUCTS A PROPRIETARY CONCERN

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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HAVING ITS OFFICE AT THIROOR PO MULAMKUNNATHUKAVU, THRISSUR KERALA-680581 REPRESENTED BY ITS PROPRIETOR MR JOLLY LONNAPPAN.

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…RESPONDENT

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(BY SRI. SUBRAHMANYA KAUSHIK R S.,ADVOCATE AND SMT. AISHWARYA PRASAD, ADVOCATE)

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THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11 (5) AND (6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT AN ARBITRATOR FOR AND ON BEHALF OF THE RESPONDENT IN TERMS OF CLAUSE 21 OF THE PURCHASE AGREEMENT DATED 10.10.2020 (ANNEXURE A) FROM THE PANEL OF ARBITRATORS ON THE ARBITRATION AND CONCILIATION CENTREBANGALORE (DOMESTIC AND INTERNATIONAL) 3^RD FLOOR, EAST WING, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560001; B. FURTHER DIRECT THE ARBITRATOR NOMINATED BY THE PETITIONER NAMELY HONBLE MR. JUSTICE. KRISHNA BHAT, HONBLE FORMER JUDGE HIGH COURT OF KARNATAKA BE ALSO APPOINTED AND DIRECT THAT BOTH THE ARBITRATORS HEREBY SO APPOINTED TO CHOOSE/NOMINATE THE THIRD ARBITRATOR/ CHAIRMAN OF THE ARBITRAL PANEL, AS REQUIRED BY THE CLAUSE 21 OF THE PURCHASE AGREEMENT DATED 10.10.2020.

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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

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ORDER

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This petition is filed for constitution of an Arbitral Tribunal as contemplated under Section 11[6] of the Arbitration and Conciliation Act, 1996. Smt. Yovini Rajesh Rohra and Sri Subrahmanya Kaushik R, the learned counsel for the parties, submit that the parties do not dispute the agreement for arbitration or the existence of an arbitral dispute but the difference, at this stage, would be whether there must be a Tribunal of three Arbitrators or a sole Arbitrator . The agreement for arbitration reads as under:

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“Any dispute, controversy or claim arising out of or in relation to this Agreement which cannot be settled amicably between the parties, the validity, invalidity, breach or termination thereof, shall be settled by arbitration in accordance with The Arbitration and Conciliation Act 1996 of India, the seat of arbitration shall be Bangalore, the number of arbitrators shall be three (3) with each party nominating one arbitrator and the third arbitrator

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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who will be Chairman of the panel will be chosen by the arbitrators nominated by the parties. The arbitration award will be made by the majority vote of the three (3) arbitrators and it will be final and binding on both parties. The costs of arbitration excluding traveling expenses of either party associated with such submission shall be shared equally by the Parties and the prevailing party shall be entitled to recover all court costs, reasonable expenses and reasonable attorney fees from the losing party. The language of Arbitration shall be English.”

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Smt. Yovini Rajesh Rohra submits that the petitioner, a pharmaceutical company, has entered into a Purchase Agreement dated 10.10.2020 sharing the moulds for manufacture of medicine bottles, and though the contractual period was ending, the respondent has issued Invoice for a sum of Rs.2,86,037/-, and therefore, the petitioner has called for return of the moulds. She submits that the respondent, notwithstanding the circumstances as above, has raised a claim of Rs.33,24,91,000/- on untenable grounds, and as such, the petitioner would

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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be keen on an Arbitral Tribunal with three Arbitrators an agreed. Sri Subrahmanya Kaushik R submits precisely in the aforesaid circumstances, the respondent would request for appointment of a sole Arbitrator.

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The agreement between the petitioner and the respondent indeed contemplates resolution of disputes by an Arbitral Tribunal comprising of three arbitrators, but given the reasons for the dispute, the respondent’s claim, the cost that will have to be borne if there is an Arbitral Tribunal of three Arbitrators, and the reasons Sri Subrahmanya Kaushik R emphasizes, this Court is of the considered view that, notwithstanding the party autonomy that could be relied upon , a former Judge of this Court must be appointed as a sole Arbitrator. The petitioner has suggested the name of Hon’ble Sri. Justice P Krishna Bhat, a former Judge of this Court, as its nominee Arbitrator, and Sri Subrahmanya

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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Kaushik R is categorical that the petitioner’s nominee could be appointed as the sole Arbitrator. In the light

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of the above, the following:

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ORDER

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[a] The petition is allowed, and Hon'ble Sri.

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Justice P Krishna Bhat, a former Judge of

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the High Court of Karnataka, 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 Rules governing the Centre.

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[b] The Registry is directed to communicate this order [through E-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and Hon'ble Sri. Justice P Krishna Bhat, a former Judge, High Court of Karnataka,

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NC: 2023:KHC:36693 CMP No. 137 of 2023

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Address: “Vasishta”, No.41, Near Ganesh

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Emerald, Judicial Layout 3^rd Phase, Hejjala, Bidadi, Bengaluru-562 109[Email [email protected]] as required under the Appointment of Arbitrators by the Chief Justice of

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Karnataka High Court Scheme, 1996.

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Sd/JUDGE

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AN/-

V B Medicare Private Limited v. M/S Chemmannur Polymer Products

Case brief

What is this about?

What did the court decide?

V B Medicare Private Limited v. M/S Chemmannur Polymer Products

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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