Sri.K.M.Musthafa Vs Union of India

THIS CMP IS FILED UNDER SECTION 11 (5) OF THE OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT AN ARBITRATOR FOR RESOLVING THE DISPUTE BETWEEN THE PETITIONER AND RESPONDENT AS PER CLAUSE 16 OF THE LICENSE AGREEMENT DATED 19.01.2017 VIDE AT ANNEXURE-B.

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

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CORAM: HON'BLE MR. JUSTICE E.S.INDIRESH

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ORAL ORDER

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Heard Sri. Varun Patil, learned counsel appearing for petitioner and Sri. Madhukar M. Deshpande, learned counsel appearing for the respondents.

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In this petition, the petitioner has sought for appointment of an Arbitrator to adjudicate the disputes that have arisen between the parties in relation to the License Agreement dated 19.01.2017 in accordance with the provisions of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the

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‘Act’).

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NC: 2025:KHC:37275 CMP No. 424 of 2021

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HC-KAR

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Sri. Varun Patil, learned counsel appearing

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for the petitioner contended by referring to Clause 16 of the License Agreement dated 19.01.2017 and also refers to the notice dated 27.09.2021 (Annexure-F) sought for appointment of the Arbitrator to resolve the dispute.

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Sri. Madhukar S. Deshpande, learned

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counsel appearing for the respondent referred to letter dated 06.11.2020 (Document No.7) in IA No. 1 of 2022, and contended that, the appointment of the Arbitrator has to be made in the event of any failure of settlement between the parties and therefore, contended that, the appointment of Arbitrator does not arise unless there is an express meeting of the minds of the parties for settlement. It is also submitted by the learned counsel appearing for the respondent that, an Arbitrator has been already appointed as per letter dated 09.11.2021 (Document

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4 - NC: 2025:KHC:37275 CMP No. 424 of 2021

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HC-KAR

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No.18) and therefore, he argued that, the petition does not survive for consideration.

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Having taken note of the submissions made by the learned counsel appearing for the parties and upon perusal of Clause 16 of the License Agreement dated 19.01.2017, though the said provision provides for appointment of the Arbitrator at the instance of the respondent herein, however, the same cannot be accepted on the ground that the sole Arbitrator who has been appointed therein is a personnel of the respondent establishment. In that view of the matter, I am of the considered opinion that, an independent and impartial Arbitrator is to be appointed to adjudicate the dispute between the parties. It is also to be noted that, the appointment of Arbitrator by the respondent would affect scope and ambit of Section 12(5) of the above Act.

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HC-KAR

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Accordingly, this petition under Section 11

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(6) of the Act, 1996 is allowed . Sri.S.R. Somashekar, Retired District Judge, is appointed to enter into the said reference of Arbitration and act as the Sole Arbitrator in the present case in the Arbitration and Conciliation Centre (Domestic & International), Bengaluru, as per the Rules governing the said Arbitration Centre.

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All claims and contentions of any of the parties are left/kept open to be decided by the Arbitral Tribunal.

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A copy of this order be sent forthwith to the Arbitration and Conciliation Centre (Domestic & International), Khanija Bhavan, Bengaluru, for proceeding further in the matter.

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NC: 2025:KHC:37275 CMP No. 424 of 2021

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HC-KAR

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Registry is directed to return all original

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documents produced by any of the parties after obtaining Photostat copies of the same.

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Since the parties are represented through their learned counsel, in order to avoid further delay in the matter, the parties are directed to appear before the Arbitration and Conciliation Centre on 27.10.2025 at 11.00 am, without waiting for further notice in this regard.

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SD/(E.S.INDIRESH) JUDGE

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SB List No.: 1 Sl No.: 51

Sri.K.M.Musthafa v. Union of India

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Sri.K.M.Musthafa v. Union of India

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