Allowed

M/S. N.D.Properties Pvt. Ltd., v. Sri.B. Narasimhaiah

Karnataka HC12 Jan 2024CMP/221/2022

Case brief

AI extract

What is this about?

A Civil Misc. Petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitrator based on the arbitration clause in a Joint Development Agreement. The Court appointed a former High Court Judge as sole arbitrator and allowed the petition, leaving merits open.

What did the court decide?

Appointment of Hon'ble Shri. Ashok B Hinchigeri as sole Arbitrator to resolve the dispute between the parties.

M/S. N.D.Properties Pvt. Ltd., Vs Sri.B. Narasimhaiah — Arbitration | Karnataka HC (2024)

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NC: 2024:KHC:3249 CMP No. 221 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12^TH DAY OF JANUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CIVIL MISC. PETITION NO.221 OF 2022

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BETWEEN:

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M/S. N.D.PROPERTIES PVT. LTD., A PRIVATE LIMTED COMPANY INCORPORATED UNDER THE COMPANIES ACT HAVING ITS OFFICE AT NO.398 2^ND FLOOR, 7^TH CROSS, MICO LAYOUT BTM 2^ND STAGE

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BANGALORE - 76 REPTD. BY ITS MANAGING DIRECTOR M.K.K. DURANI.

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…PETITIONER

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(BY SRI. RAVIKUMAR M., ADVOCATE)

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AND:

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Digitally signed by VANDANA S Location: HIGH COURT OF KARNATAKA

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SRI.B.NARASIMHAIAH S/O LATE CHANNAMARAPPA AGED ABOUT 61 YEARS

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B.N. GANGA D/O NARASIMHAIAH AGED ABOUT 34 YEARS

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B.N. SHWETHA D/O NARASIMHAIAH AGED ABOUT 30 YEARS

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B.N. SHEETHAL D/O NARASIMHAIAH AGED ABOUT 26 YEARS

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NC: 2024:KHC:3249 CMP No. 221 of 2022

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B.N. DEEPIKA D/O NARASIMHAIAH AGED ABOUT 24 YEARS.

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B.N. PREETI D/O NARASIMHAIAH AGED ABOUT 22 YEARS

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ALL ARE R/AT BABASAHEBARAPALYA KENGERI UPANAGAR KENGERI HOBLI, BANGALORE 560 060.

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…RESPONDENTS

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(BY SRI. D.L. JAGADEESH, SENIOR COUNSEL FOR SMT. RAKSHITHA D J.,ADVOCATE)

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THIS CMP IS FILED UNDER SECTION 11(6) (a) OF ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT AN ARBITRATOR TO RESOLVE THE EXISTING DISPUTE BETWEEN THE PARTIES HEREIN IN THE TERMS OF ARBITRATION CLAUSE CONTAINED IN THE JDA DATED: 24.04.2008.

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

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ORDER

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The present petition under Section 11 of the Arbitration and Conciliation Act, 1996, has been filed by the petitioner against the respondents seeking appointment of an Arbitrator in terms of the Arbitration Agreement contained at Clause No.40 in the Joint Development Agreement dated 24.04.2008 entered into between the parties.

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Clause – 40 of the said Agreement, which contains an Arbitration clause, reads as under:-

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NC: 2024:KHC:3249 CMP No. 221 of 2022

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“ In the event of any dispute or differences between the parties herein, the same shall be settled amicably through mutual discussions and conciliations, after giving due notices to the addresses given herein above by Registered Post A.D. In spite of the aforesaid if it is not possible to reach a solution in respect of mutual rights and obligations, such dispute / difference shall be referred to arbitration to a Govt. Arbitrator, as per the provisions of the Arbitration & Conciliations Act, 1996, the venue of such arbitration shall be at Bangalore. The decision of the arbitrators shall be final and binding on both the parties. ”

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The material on record discloses that since disputes arose between the parties in relation to the aforesaid Agreement containing the aforesaid arbitration agreement / clause, the petitioner invoked the aforesaid arbitration clause and issued a notice dated 13.05.2019 to the respondents putting forth various claims and contentions and nominating and appointing a sole arbitrator and calling upon the respondents to give their concurrence / consent to refer the dispute to arbitration.

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The respondents did not send any reply and have not disputed the existence of arbitration agreement / clause in the contracts entered into between the parties. Subsequently, the

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4 - NC: 2024:KHC:3249 CMP No. 221 of 2022

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parties have not only failed to resolve their disputes but they have also not reached any consensus / agreement for appointment of an arbitrator and as such, petitioner is before this Court by way of the present petition. Even in the present petition, while the respondents have not filed their statement of objections, they have disputed and denied the various claims of the petitioner. However, the respondents do not dispute or deny the existence of arbitration agreement / clause in the contracts entered into between the parties.

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In view of the aforesaid facts and circumstances, though several contentions have been urged by both sides in support of their respective claims, having regard to the undisputed fact that there exists an arbitration agreement / clause in the contracts entered into between the parties, without expressing any opinion on the merits / demerits of the rival contentions, I deem it just and appropriate to allow this petition by referring the dispute between the parties to arbitration with the consent of both sides by appointing Hon’ble Shri. Ashok B Hinchigeri, Former Judge, High Court of Karnataka, to act as the sole Arbitrator to resolve the dispute between the parties under the provisions of the

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5 - NC: 2024:KHC:3249 CMP No. 221 of 2022

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Arbitration and Conciliation Act, 1996, as per the Rules governing the Arbitration and Conciliation Centre (Domestic & International) at Bengaluru.

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6. In the result, I pass the following

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ORDER

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(i) Petition is hereby allowed.

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(ii) Hon’ble Shri. Ashok B Hinchigeri, Former Judge, High Court of Karnataka, is hereby appointed as

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the sole Arbitrator to resolve the dispute between the parties as per the Rules governing the Arbitration and Conciliation Centre (Domestic & International) at Bengaluru.

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(iii) All rival claims, contentions, etc., of both parties including contentions relating to maintainability, arbitrability, jurisdiction, limitation, stamp duty, etc., are left / kept open to be decided by the Arbitral Tribunal and no opinion is expressed on the same.

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(iv) A copy of this order be sent forthwith to the Arbitration and Conciliation Centre (Domestic &

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NC: 2024:KHC:3249 CMP No. 221 of 2022

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International), Khanija Bhavan, Bengaluru, for proceeding further and also to Hon’ble Shri. Ashok B Hinchigeri, Former Judge, High Court of Karnataka , to the address available with the said Centre.

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(v) Registry is directed to return all original documents produced by any of the parties after obtaining Photostat copies of the same.

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Sd/JUDGE

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M/S. N.D.Properties Pvt. Ltd., v. Sri.B. Narasimhaiah

Case brief

What is this about?

What did the court decide?

M/S. N.D.Properties Pvt. Ltd., v. Sri.B. Narasimhaiah

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

Parties & counsel

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