Allowed

A Mallikarjuna Rao v. Puja Megastructures Pvt. Ltd.

Karnataka HC27 Mar 2023CMP/174/2021

Case brief

AI extract

What is this about?

The High Court allowed a petition under Section 11(6) of the Arbitration Act, 1996, appointing a retired District Judge as the sole arbitrator to resolve disputes arising from a Joint Development Agreement and a Memorandum of Understanding between the petitioners and the respondent.

What did the court decide?

Appointment of Shri H.M. Nanjundaswamy, Retired District Judge, as Sole Arbitrator to resolve disputes between the parties.

A Mallikarjuna Rao Vs Puja Megastructures Pvt. Ltd. — Arbitration | Karnataka HC (2023)

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CMP No. 174 of 2021

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 27^TH DAY OF MARCH, 2023

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BEFORE

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THE HON'BLE MR JUSTICE S.G.PANDIT CIVIL MISC. PETITION NO. 174 OF 2021

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BETWEEN:

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A MALLIKARJUNA RAO S/O LATE NAGABHUSHANA M. CHETTY AGED ABOUT 61 YEARS

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MRS. A USHA RANI W/O A MALLIKARJUNA RAO AGED ABOUT 57 YEARS

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MR. DEELIP M A S/O A MALLIKARJUNA RAO AGED ABOUT 33 YEARS

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MS. DEEPIKA M A D/O A MALLIKARJUNA RAO AGED ABOUT 36 YEARS

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Digitally signed by MARIGANGAIAH PREMAKUMARI Location: High Court of Karnataka

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ALL ARE R/A 215/4, 13^TH MAIN 3^RD BLOCK RAJAJINAGAR BENGALURU-560010.

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(BY SRI. SUSHEN S., ADV.)

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AND:

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PUJA MEGASTRUCTURES PVT. LTD., (FORMERLY KNOWN AS PUJA HOUSING AND DEVELOPING CORPORATION) 408/B, 13^TH MAIN ROAD BANASHANKARI II STAGE BANGALORE-560070 REP. BY ITS MANAGING DIRECTOR MR. MOHAN BABU. (BY SMT. GOWHAR UNNISA, ADV.)

…PETITIONERS

…RESPONDENT

CMP No. 174 of 2021

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THIS PETITION IS FILED UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING THIS TO 1. APPOINT A RETIRED JUDGE OF THIS COURT AS THE SOLE ARBITRATOR TO FACILITATE RESOLVING OF ALL THE DISPUTES, BETWEEN THE PETITIONERS AND RESPONDENT AS PER CLAUSE 31 OF THE JDA DATED 20/09/2010 (ANNEXURE-A) IN ACCORDANCE WITH THE PROVISIONS OF THE INDIAN ARBITRATION ACT, 1996 AND 2. PASS SUCH OTHER FURTHER RELIEFS AS MAY DEEM FIT IN THE INTERESTS OF LAW AND JUSTICE.

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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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Heard the learned counsel Sri.Sushen.S., for petitioners and learned counsel Smt.Gowhar Unnisa for respondent. Perused the petition papers.

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Petitioners are before this Court under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short 1996 Act) praying to appoint a retired Judge as the Sole Arbitrator to resolve the disputes between petitioners and respondent in terms of Clause 31 of the Joint Development Agreement dated 20.09.2010 (Annexure-A).

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Learned counsel for the petitioners would submit that petitioners and respondent entered into Joint Development Agreement dated 20.09.2010 (Annexure-A) and invites attention of this Court to Clause 31 which

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CMP No. 174 of 2021

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provides for resolution of any dispute among the parties by Arbitration. Learned counsel would further submit that respondent failed to complete the work in terms of Joint Development Agreement and further the parties entered into a Memorandum of Understanding dated 10.04.2017. The terms and conditions of the Memorandum of Understanding is also not adhered to, by the respondent. Learned counsel for the petitioners would submit that in terms of notice at Annexure-G dated 20.03.2020, petitioners invoked Arbitration clause and nominated an Advocate as their nominee for adjudicating the dispute between the parties. It is submitted that respondent failed to reply to the notice.

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Learned counsel Smt.Gowhar Unnisa for respondent would submit that petitioners failed to comply with the terms and conditions of Memorandum of Understanding dated 10.04.2017. In that, it is submitted that respondent completed the project and therefore, she submits that there is no dispute to resolve among the parties.

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CMP No. 174 of 2021

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However, after arguing the matter for some time, both the learned counsel would submit that a retired Judge be appointed as Arbitrator to resolve the dispute between petitioners and respondent arising out of Joint Development Agreement dated 20.09.2010 as well as Memorandum of Understanding dated 04.10.2017.

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On hearing the learned counsel appearing for the parties and on perusal of petition papers, I am of the view that necessary conditions for exercise of jurisdiction under Section 11(5) and (6) of 1996 Act are satisfied. Hence, the following:

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ORDER

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(i) The petition is allowed.

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(ii) Shri H.M.Nanjundaswamy, retired District Judge, residing at No.19, 2^nd Cross Road, SuvarnaBadavane, Nagarbhavi 1^st Stage, Chandra Layout Extension, II Stage, Nagarabhavi, Bengaluru-560039 is appointed as Sole Arbitrator to enter

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5 - CMP No. 174 of 2021

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reference of the dispute between the petitioner and respondents and conduct proceedings at Arbitration and Conciliation Centre (Domestic and International) Bengaluru, according to the Rules governing Arbitration and Conciliation Centre (Domestic and International) Bengaluru.

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(iii) Registry is directed to communicate this order (by E-mail) to the Arbitration and Conciliation Centre (Domestic and International) Bengaluru and also to Shri H.M.Nanjundaswamy, retired District Judge, as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996.

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CT:bms: List No.: 1 Sl No.: 48

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Sd/JUDGE

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A Mallikarjuna Rao v. Puja Megastructures Pvt. Ltd.

Case brief

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A Mallikarjuna Rao v. Puja Megastructures Pvt. Ltd.

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