M/S Aanya Electricals and Constructions Vs M/S Jain Irrigation Systems Limited

M/S. AANYA ELECTRICALS AND CONSTRUCTIONS, HAVING REGISTERED OFFICE AT NO. 17, 100 FEET RING ROAD, BTM 1ST STAGE, GURAPPANAPALYA, BENGALURU - 560 029, REPRESENTED BY ITS PARTNER MR. AKASH AANTHASWAMY (UNDER REGISTERED INDIAN PARTNERSHIP ACT 1932)

¶10

…PETITIONER

¶11

(BY SRI. CHANDAN GOWDA PATIL, ADVOCATE)

¶12

Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA

¶13

AND:

¶14

M/S. JAIN IRRIGATION SYSTEMS LIMITED, HAVING ITS REGISTERED OFFICE AT PLASTIC PARK, NH 6, BAMBHORI JALGAON, MAHARASHTRA - 425 001, REPRESENTED BY ITS MANAGING DIRECTOR. (UNDER REGISTERED COMPANIES ACT 1956)

¶15

…RESPONDENT

¶16

(RESPONDENT SERVED)

¶17

THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF ARBITRATION AND CONCILIATION ACT 1996., PRAYING TO APPOINT AN ARBITRATOR AS REFERRED IN ARBITRATION

¶18

2 - NC: 2025:KHC:23418 CMP No. 199 of 2025

¶19

HC-KAR

¶20

NOTICE DATED 13.09.2024, AS PER CLAUSE NO.19 OF THE DISPUTE RESOLUTION FORMING PARTY OF THE SUBCONTRACTOR AGREEMENT DATED 19.09.2022 AND PRODUCED AS (ANNEXURE -C) TO ADJUDICATE UPON THE DISPUTES THAT HAVE ARISEN BETWEEN THE PETITIONER AND THE RESPONDENT.

¶21

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

¶22

CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI

¶23

ORAL ORDER

¶24

This Civil Miscellaneous Petition is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking for the appointment of an Arbitrator to resolve the dispute that has arise between the parties to the petition in terms of clause 19 of the Sub-Contractor Agreement dated 19.09.2022 vide Annexure-C, as per the provisions of the Arbitration and Conciliation Act, 1996.

¶25

Brief facts, leading rise to the filing of this petition are as follows:

¶26

3 -

¶27

NC: 2025:KHC:23418 CMP No. 199 of 2025

¶28

HC-KAR

¶29

The Respondent was awarded the tender of Vishveshvaraya Jala Nigam Limited-Tarikere Lift Irrigation Scheme, Package-1/Project, for lifting water from the upper Bhadra Project Main Canal approach of the Ajjampura Tunnel. The petitioner is a registered partnership firm engaged in the business of executing various electrical and Civil works, etc. The respondent approached the petitioner to undertake the portion of the work allotted to the respondent under the Agreement and work order dated 17.03.2018. The respondent's representative, Mr.Sandeep Jain, using his official email ID, sent a draft sub-contractor agreement to the petitioner.

¶30

Both petitioner and respondent entered into a Sub-Contractor Agreement on 19.09.2022 vide Annexure-C. Pursuant to the Sub-Contractor Agreement, the petitioner undertook the work assigned to them. The respondent did not clear the outstanding dues of Rs.1,26,48,356.64/- (Rupees One Crore Twenty Six Lakhs

¶31

4 - NC: 2025:KHC:23418 CMP No. 199 of 2025

¶32

HC-KAR

¶33

Forty-Eight Thousand Three Hundred Fifty Six and Sixty

¶34

Four Paise only). The petitioner, aggrieved by the nonpayment of the outstanding dues, issued a legal notice on 20.07.2024 asking the respondent to clear the dues vide Annexure-D. Thereafter, the petitioner invoked an arbitration clause No.19 in the Sub-Contractor Agreement dated 19.09.2022, by issuing an arbitration notice dated 13.09.2024 vide Annexure-E. The respondent did not reply to the arbitration notice, and legal notice. Hence, this petition.

¶35

A Notice was issued to the respondent. Despite service of the notice, respondent remained unrepresented, and was placed ex-parte.

¶36

Heard the arguments of learned counsel for the petitioner.

¶37

Learned counsel for the petitioner submits that the petitioner and respondent have executed a SubContractor Agreement, and pursuant to the Sub-

¶38

5 - NC: 2025:KHC:23418 CMP No. 199 of 2025

¶39

HC-KAR

¶40

Contractor Agreement, the petitioner has completed the work and raised invoices, but the respondent did not pay the outstanding dues, as claimed by the petitioner. He submits that the petitioner issued a demand notice on 20.07.2024. Despite the service of a demand notice, the

¶41

respondent did not pay the outstanding dues. The petitioner invoked an arbitration clause by issuing an arbitration notice on 13.09.2024. Despite service of the arbitration notice, the respondent has not replied to the legal notice nor given concern for the appointment of an arbitrator. Hence, he prays to allow the petition.

¶42

Perused the records, and considered the

¶43

submissions of the learned counsel for the petitioner.

¶44

The point, that arises for consideration, is as

¶45

follows:

¶46

"Whether the petitioner has made out a ground to refer the dispute between the parties to the petition as per clause 19 of the Sub-Contractor Agreement dated

¶47

6 - NC: 2025:KHC:23418 CMP No. 199 of 2025

¶48

HC-KAR

¶49

19.09.2022 vide Annexure-C, as per the provisions of Arbitration and Conciliation Act, 1996 and the Rules?".

¶50

There is no dispute regarding the execution of the Sub-Contractor Agreement dated 19.09.2022, and pursuant to the agreement, the petitioner had undertaken the work, and submitted the invoices to the respondent. The respondent did not clear the outstanding to the tune Rs.1,26,48,356.64/- (Rupees One Crore Twenty Six Lakhs Forty-Eight Thousand Three Hundred Fifty Six and Sixty Four Paise only). The petitioner has issued the demand notice on 20.07.2024.

¶51

Despite the service of a demand notice, the respondent did not clear the outstanding bills. The SubContractor Agreement, provides an Arbitration clause at clause 19, which reads as follows:

¶52

"19. Dispute Resolution:

¶53

Any dispute arising out of this Agreement shall be mutually settled. However, in case the same is not possible, it shall be referred to a Sole Arbitrator appointed by both the parties as may be mutually

¶54

7 -

¶55

NC: 2025:KHC:23418 CMP No. 199 of 2025

¶56

HC-KAR

¶57

agreed. The venue for arbitration shall be Jalgaon/Bangalore and it shall be governed as per the Arbitration and conciliation Act, 1996 and subsequent amendments, if any."

¶58

From a reading of the clause 19 of the SubContractor Agreement, if any dispute arises between the parties to the petition, the same shall be referred to the sole Arbitrator. The dispute has arisen between the petitioner and respondent regarding the payment of outstanding dues. The dispute has to be resolved through an Arbitration in terms of clause 19 of the Sub-Contractor Agreement. The petitioner issued an arbitration notice proposing the name of the Arbitrator i.e., Sri.R.H.Raddi, Bengaluru, Arbitration Centre, Bengaluru. The respondent did not reply to the notice. Hence, the arbitral dispute must be resolved through arbitration. The petitioner has made out a ground to refer the arbitral dispute to the Arbitrator.

¶59

In view of the above discussion, I answer the point for consideration in the affirmative.

¶60

8 -

¶61

NC: 2025:KHC:23418 CMP No. 199 of 2025

¶62

HC-KAR

¶63

Accordingly, I proceed to pass the following:

¶64

ORDER

¶65

i. The Civil Miscellaneous petition is allowed .

¶66

ii. Hon’ble Justice Sri. P.Vishwanatha Shetty, is nominated as the sole Arbitrator to resolve the dispute between the parties to the petition, as per the provisions of the Arbitration and Conciliation Act, 1966, and the Rules.

¶67

iii. The office is directed to communicate this order to the learned sole Arbitrator and the Arbitration and Conciliation Centre, Bengaluru.

¶68

iv. Pending Application, stand disposed off.

¶69

Sd/(ASHOK S.KINAGI) JUDGE

¶70

PK

¶71

List No.: 1 Sl No.: 22 CT: BHK

M/S Aanya Electricals and Constructions v. M/S Jain Irrigation Systems Limited

Case brief

What is this about?

What did the court decide?

M/S Aanya Electricals and Constructions v. M/S Jain Irrigation Systems Limited

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

Similar cases

Bagalkot Cement and Industries Ltd. Vs Vyshali Energy Pvt. Ltd.

Sri Alwyn Steven D'Souza Vs Smt Juliana D'Souza

Shvij Floorings Vs Ithaca Estates Pvt. Ltd.

M/S Srinivas Constructions Vs M/S Tumkuru Smart Ciyt Ltd.

Sri H N Thippeswamy Vs Smt. Anitha B G

3M India Ltd. Vs M/S Im Traders