Allowed

United Breweries Limited v. Snj Distilleries Pvt. Ltd.

Karnataka HC10 Nov 2023CMP/520/2021

Case brief

AI extract

What is this about?

This Civil Misc. Petition sought the appointment of a sole arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, based on a Brewing and Distribution Agreement. The Court allowed the petition and appointed a former Judge as the sole arbitrator.

What did the court decide?

Appointment of Hon'ble Mr. Justice H. G. Ramesh as the sole Arbitrator to conduct proceedings at the Arbitration and Conciliation Centre, Bengaluru.

United Breweries Limited Vs Snj Distilleries Pvt. Ltd. — Arbitration | Karnataka HC (2023)

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NC: 2023:KHC:40356 CMP No. 520 of 2021

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

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 520 OF 2021

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BETWEEN:

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UNITED BREWERIES LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 WITH ITS REGISTERED OFFICE ADDRESS AT UB TOWER, UB CITY VITTAL MALLYA ROAD BANGALORE - 560001.

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…PETITIONER

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(BY MS. ARCHANA NANI, ADVOCATE FOR SRI. AJITH A SHETTY.,ADVOCATE)

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AND:

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Digitally signed by SNJ DISTILLERIES PVT LTD NARASIMHA OLD NO 47 MURTHY VANAMALA NEW NO 99 CANAL BANK ROAD Location: C I T NAGAR NANDANAM HIGH COURT OF CHENNAI - 600035 KARNATAKA TAMILNADU BY ITS MANAGING DIRECTOR / INCUMBENT OFFICER

…RESPONDENT

(RESPONDENT SERVED)

NC: 2023:KHC:40356 CMP No. 520 of 2021

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THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT AN INDIVIDUAL AS ARBITRATOR, WHO IN THE OPINION OF THIS COURT WOULD BE EQUIPPED TO ADJUDICATE THE DISPUTE/S BETWEEN THE PARTIES HEREIN BY ARBITRATION AS PER BREWING AND DISTRIBUTION AGREEMENT DATED 12/03/2018 VIDE DOCUMENT NO.1.

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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 appointment of a sole Arbitrator relying upon the agreement for arbitration as contained in the Brewing and Distribution Agreement dated 12.03.2018 which reads as under:

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“19 Arbitration:

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19.1 In the event of any dispute arising under this agreement, the same shall be referred to a sole Arbitrator to be appointed mutually by the parties. The Arbitrator shall be an independent person and the arbitration proceedings shall be conducted in accordance with

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NC: 2023:KHC:40356 CMP No. 520 of 2021

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the provisions of the Arbitration & Conciliation Act, 1996.

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19.2 The place of arbitration shall be at Bangalore and the civil courts at Bangalore shall have the jurisdiction with regard to the disputes arising under this agreement.

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19.3 As far as possible, the arbitration shall be based only on documents and the parties shall endeavour to complete all proceedings within a maximum period of six months from the date of commencement of the arbitration.”

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The learned counsel for the petitioner submits that the petitioner, because of certain circumstances, had to terminate the Brewing and Distribution Agreement in the month of January 2020; that there is reconciliation with the petitioner and the respondent signing the Reconciliation Agreement dated 27.11.2020. The petitioner has caused legal notice raising demand for the amount paid under this agreement; that the petitioner has also mentioned

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NC: 2023:KHC:40356 CMP No. 520 of 2021

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about the arbitration agreement in the legal notice dated 05.08.2021, but there is no response.

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The aforesaid submissions are not controverted inasmuch as the respondent though served has remained absent. This Court is of the considered opinion that necessary circumstances for exercise of jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996 are made out. Hence the following:

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ORDER

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[a] The petition is allowed, and the Hon’ble Mr.

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Justice H. G. Ramesh, a former Judge of this Court, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and respondent and conduct the

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proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the Arbitration and

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NC: 2023:KHC:40356 CMP No. 520 of 2021

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Conciliation Centre (Domestic and

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International), Bengaluru.

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[b] The Registry is directed to communicate this order [also by email] to the Arbitration and Conciliation Centre and Hon’ble Mr. Justice H. G. Ramesh, a former Judge of this Court, Address: No.342A, 10th Main, Sector 7, HSR Layout, Bengaluru-560 102 [Email:[email protected]] 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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AN/-

United Breweries Limited v. Snj Distilleries Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

United Breweries Limited v. Snj Distilleries Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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