Allowed

M/S Sai Surya Distributors v. M/S Pepe Jeans Innerfashion Private Limited

Karnataka HC27 Nov 2023CMP/759/2022

Case brief

AI extract

What is this about?

The High Court of Karnataka allowed a civil miscellaneous petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, appointing a sole arbitrator since the respondent failed to exercise its right to appoint one after receiving demand notices.

What did the court decide?

Appointment of Sri. Kukkaje Ramakrishna Bhat as the sole Arbitrator to adjudicate the dispute between the parties.

M/S Sai Surya Distributors Vs M/S Pepe Jeans Innerfashion… — Arbitration | Karnataka HC (2023)

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NC: 2023:KHC:42670 CMP No. 759 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 27^TH DAY OF NOVEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD

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CIVIL MISC. PETITION NO. 759 OF 2022

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BETWEEN:

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M/S SAI SURYA DISTRIBUTORS A PARTNERSHIP FIRM REGISTERED UNDER THE INDIAN PARTNERSHIP ACT 1932, NO.10 SHREYAS MANSION 8^TH B MAIN, 4^TH BLOCK JAYANAGAR, BENGALURU-560011 REPRESENTED BY ITS PARTNER MR NIKHILESH PATHI S/O MR SURESH PATHI AGED ABOUT 32 YEARS.

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…PETITIONER

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(BY SRI. S R KAMALACHARAN, ADVOCATE)

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AND:

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

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M/S PEPE JEANS INNERFASHION PRIVATE LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956 AND EXISTING THE PROVISION OF THE COMPANIES ACT 2013 HAVING ITS REGISTERED OFFICE AT NO.1210, 3^RD FLOOR FAWAAZ MANOR, 100 FEET ROAD HAL 2^ND STAGE INDIRANAGAR BENGALURU-560008

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NC: 2023:KHC:42670 CMP No. 759 of 2022

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ALSO AT

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OM TOWER 15^TH FLOOR NO.32 J L NEHRU ROAD, KOLKATA-700071 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER MR SURESH NAMBIAR.

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…RESPONDENT

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(RESPONDENT-SERVED UNREPRESENTED)

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THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO (A) APPOINT SRI. SUNDARARAMAN, ADVOCATE NO.33, 1^ST CROSS ROAD, XAVIER LAYOUT, VICTORIA LAYOUT, BENGALURU560047 AS THE SOLE ARBITRATOR TO ENTER UPON REFERENCE AND ADJUDICATE THE DISPUTES BETWEEN THE PARTIES AS PER THE ARBITRATION CLAUSE IN THE DISTRIBUTION AGREEMENT DATED 05/12/2018 (ANNEXURE-C) AND ETC.

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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, and the petitioner relies upon the Distribution Agreement dated 05.12.2018 with the respondent. The agreement for arbitration, as contained in this Distribution Agreement, stipulates that first there shall be efforts to amicably settle the

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NC: 2023:KHC:42670 CMP No. 759 of 2022

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dispute, and if for any reason, the dispute is not so settled, the respondent shall appoint a sole Arbitrator. The petitioner has caused legal notice dated 29.03.2022 raising a demand for a sum in excess of Rs.1 Crore and thereafter another legal notice dated 16.06.2022 is issued invoking the agreement for arbitration.

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Sri. S R Kamalacharan, the learned counsel for the petitioner, submits that the respondent though served with both the notices has not issued any reply, and on the agreement for arbitration, the learned counsel submits that the respondent could not retain the right to appoint the Arbitrator without the petitioner’s consensus. This Court must observe that even otherwise with the petitioner causing the legal notice dated 16.06.2022, the respondent should have exercised the right to appoint, and in the absence thereof, the petition must be allowed leaving all questions about the merits of the petitioner’s

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NC: 2023:KHC:42670 CMP No. 759 of 2022

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claim to be decided in the arbitral proceedings. In

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the light of the afore, the following:

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ORDER

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[a] The petition is allowed.

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[b] Sri. Kukkaje Ramakrishna Bhat, a retired District Judge, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and the respondent and conduct the proceeding at

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

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[c] The Registry is directed to communicate this order [by E-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru, and Sri. Kukkaje Ramakrishna Bhat, a retired District Judge, Address: No.2, 1st

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NC: 2023:KHC:42670 CMP No. 759 of 2022

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Cross, Judicial Layout, Sanjaynagar, RMV II Stage, Bengaluru – 560 094 [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/-

M/S Sai Surya Distributors v. M/S Pepe Jeans Innerfashion Private Limited

Case brief

What is this about?

What did the court decide?

M/S Sai Surya Distributors v. M/S Pepe Jeans Innerfashion Private Limited

Case brief

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What did the court decide?

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