Petitioner sought appointment of an arbitrator under Section 11(6) citing a registered agreement of sale containing an arbitration clause, after respondents refused to execute the sale deed and failed to respond to arbitration notice despite service.
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NC: 2024:KHC:15126 CMP No. 169 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 2ND DAY OF AUGUST, 2024
BEFORE
THE HON'BLE MR JUSTICE ASHOK S.KINAGI
CIVIL MISC. PETITION NO.169 OF 2023
BETWEEN:
…PETITIONER
(BY SRI. M.V. SRIDHAR CHAKRAVARTHI, ADVOCATE)
AND:
Digitally signed by R DEEPA Location: HIGH COURT OF KARNATAKA
REP. BY HIS GPA HOLDER SMT. INDRAMMA W/O B.P. THAMMEGOWDA, RESPONDENT No.4
NC: 2024:KHC:15126 CMP No. 169 of 2023
4. SMT INDRAMMA
W/O B P THAMMEGOWDA, AGED ABOUT 63 YEARS
ALL ARE RESIDING AT VEERABHADRESHWARA NILAYA OPP: MAMATHA HOMEOPATHY CLINIC NEAR AIT GIRLS HOSTEL, BY PASS ROAD, KALYANA NAGARA, CHICKMAGALUR 577102
…RESPONDENTS
(R1 SERVED V/O DATED 26.07.2024 NOTICE TO R2 TO R4 H/S)
THIS CMP IS FILED UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT AN ARBITRATOR IN ACCORDANCE WITH CLAUSE 9 OF THE AGREEMENT OF SALE DATED 09.05.2018 REGISTERED AS DOCUMENT No.CKM-1-00918-2018-19 IN CD No.CKMD238 IN THE OFFICE OF THE SUB-REGISTRAR, CHIKKAMAGALURU ENTEREED INTO BETWEEN THE PARTIES TO RESOLVE THE DISPUTE THAT HAS ARISEN BETWEEN THE PARTIES, PRODUCED AT ANNEXURE-A, IN THE INTEREST OF JUSTICE AND EQUITY.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI
ORAL ORDER
This Civil Miscellaneous petition is filed under Section
11(6) of Arbitration and Conciliation Act, 1996 (for short
'the Act, 1996'), for appointment of an Arbitrator in accordance with clause 9 of the agreement of sale dated 09.05.2018 entered between the parties to resolve the dispute that has arisen between the parties vide Annexure-A.
The petitioner had entered into an agreement of sale
with the respondents. The respondents executed an agreement of sale on 09.05.2018. As per the terms and conditions of the agreement of sale, the respondents agreed to sell the schedule property for consideration of Rs.63,00,000/- and it was agreed that the respondents shall execute the registered sale deed. Out of the total consideration amount, the petitioner initially paid a sum of Rs.10,70,000/- as an advance amount and later on the respondents demanded for additional consideration amount. The petitioner had paid additional consideration amount of Rs.14,00,000/-. The petitioner requested the
respondents to execute the registered sale deed after receiving the balance consideration amount, but the respondents went on avoiding to execute the registered sale deed. The petitioner got issued a legal notice on 01.07.2022 calling upon the respondents to receive the balance consideration amount and to execute the registered sale deed. Inspite of service of notice, the respondents did not receive the balance consideration amount and executed the registered sale deed. However, the petitioner filed the Arbitration Application before the District Judge, Chikkamagaluru in A.A.No.7/2022. The District Judge has passed the order on 28.08.2023. The petitioner also got issued notice under Section 11(5) of the Act, 1996, dated 13.09.2022 to the respondents nominating Sri. R.Nagaraj, Advocate, Vijayanagar, Chikkamagaluru, as an Arbitrator. The said notice was duly served upon the respondents. In spite of service of notice, the respondents did not come forward to nominate the Arbitrator. Hence, this petition.
NC: 2024:KHC:15126 CMP No. 169 of 2023
respondents.
that the respondents have agreed to sell the suit schedule property in favour of the petitioner and executed the registered agreement of sale on 09.05.2018 for consideration of Rs.63,00,000/- and accordingly, the petitioner paid the amount of Rs.24,70,000/- on different occasions and the petitioner was ready and willing to perform his part of contract, but the respondents were not ready to perform their part of contract. The petitioner got issued a legal notice on 01.07.2022 vide Annexure-B calling upon the respondents to receive the balance consideration amount and to execute the registered sale deed. In spite of service of notice, the respondents neither came forward to receive the balance consideration amount nor executed the registered sale deed. Thereafter, the
petitioner filed an application under Section 9 of Act of 1996 in A.A.No.7/2022 on the file of District Judge, Chikkamagaluru. The learned District Judge vide order dated 28.08.2023 disposed of the said application. The petitioner by invoking arbitration clause issued notice under Section 11(5) of Act, 1996 on 13.09.2023 nominating Sri.R.Nagaraj, Advocate, Vijayanagar, Chikkamagaluru, as an arbitrator to resolve the dispute between the petitioner and respondents. In spite of service of notice, the respondents did not reply to the notice nor gave consent for appointment of an Arbitrator. Hence prayed to allow the petition.
submissions of the learned counsel for the petitioner.
i) Whether the petitioner has made out a ground to refer the matter to the arbitrator for resolving the dispute between the parties under
Section 11(6) of Arbitration and Conciliation act, 1996?
NC: 2024:KHC:15126 CMP No. 169 of 2023
a ground to refer the matter to the Arbitrator. Accordingly,
I answer point No.1 in the affirmative.
any retired District Judge may be appointed as an Arbitrator.
pass the following:
ORDER
Sd/(ASHOK S.KINAGI) JUDGE
SKS
1 issue framed by the court
Whether the petitioner made out a ground to refer the dispute between the parties to an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996?
2 provisions across 1 enactments
R Hemanth Kumar
Sri B P Thammegowda
Sri B T Vinay
Sri B T Naveen Kumar
Smt Indramma
Ashok S.Kinagi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
