Sri M Krishna Vs Colife Advisory Private Limited

COLIFE ADVISORY PRIVATE LIMITED A COMPANY INCORPORATED UNDER COMPANIES ACT, HAVING ITS REGISTERED OFFICE AT SUMMIT NO.13, 1ST "A" CROSS, ANANTHARAM REDDY LAYOUT, CHINNAPPANAHALLI, OUTER RING ROAD, MARATHAHALLI, BENGALURU - 450 037. ACTING THROUGH ITS AUTHORISED OFFICER SRI. SATISH KUMAR

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…RESPONDENT

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(RESPONDENT SERVED)

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THIS CIVIL MISC. PETITION UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT,

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NC: 2025:KHC:24579 CMP No. 438 of 2023

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HC-KAR

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1996, PRAYING TO APPOINT MR. PRADEEP NAIK, AND PROCEEDINGS AT HIS OFFICE AT NO. 201/16, M.N. PLAZ, HEPPINGS ROAD, SHIVAJINAGAR, BANGALORE 01 AS INDICATED IN THE NOTICE DATED 14.10.2023 TO RESOLVE DISPUTE BETWEEN THE WITHIN NAMED PARTIES PURSUANT TO THE OPERATOR AGREEMENT DATED 04/06/2019 AT ANNEXURE A, AS PER CLAUSE 10(g) OF AGREEMENT OR IN THE ALTERNATIVE, APPOINT ANY OTHER PERSON AS SOLE ARBITRATOR, AS THIS HONBLE COURT DEEM FIT TO APPOINT, IN THE INTEREST OF JUSTICE AND EQUITY.

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THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,

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ORDER WAS MADE THEREIN AS UNDER:

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

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ORAL ORDER

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This Civil Miscellaneous Petition is filed by the petitioner under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘the Act, 1996’ for brevity) for the appointment of an Arbitrator to resolve the dispute between the parties to the petition in terms of Claus 10 of the Operator Agreement dated 04.06.2019 vide Annexure-A.

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NC: 2025:KHC:24579 CMP No. 438 of 2023

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HC-KAR

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Brief facts, leading rise to the filing of this

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petition are as follows:

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The petitioner is the owner of the scheduled property and the respondent is the tenant under the petitioner. The petitioner and the respondent have entered into a Operator Agreement dated 04.06.2019 on a monthly rent of Rs.3,70,000/-. The duration of the lease is for 3 years. The respondent paid a refundable security deposit of Rs.14,00,000/- to the petitioner. The respondent did not regularly paid the rent to the petitioner. The petitioner has terminated the operator agreement by issuing a legal notice on 19.12.2021 and called respondent to pay the arrears of rent. The respondent did not fulfill the said demand. The petitioner filed a suit in O.S.No.7591/2022 for ejectment and recovery of rent money. In the said suit, the respondent herein filed an application for rejection of the plaint on the grounds that there is an arbitration clause in the operator agreement dated 04.06.2019, and the petitioner withdrawn the said suit, to present the same

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NC: 2025:KHC:24579 CMP No. 438 of 2023

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HC-KAR

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before the arbitrator. The said suit was dismissed as withdrawn vide order dated 28.02.2023. After withdrawing the said suit, the petitioner issued an arbitration notice invoking the arbitration clause on 14.10.2023 vide Annexure-F. The notice was served to the respondent. Despite service of notice, the respondent did not reply to the arbitration notice. Hence, this petition.

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Notice was served to the respondent. Despite

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service of notice, the respondent remained unrepresented.

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Heard the arguments of the learned counsel for the petitioner.

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Learned counsel for the petitioner submits that the petitioner and the respondent have executed an operator agreement on 04.06.2019. He submits that the respondent has failed to pay the arrears of rent. He submits that the petitioner demanded arrears of rent. The respondent is a defaulter. The petitioner filed a suit in O.S.No.7591/2022, and the respondent filed an application

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HC-KAR

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under Order VII Rule 11 of CPC to reject the plaint as the lease agreement contains an arbitration clause and the dispute has to be resolved before the sole arbitrator. He submits that after disposal of the suit, the petitioner issued an arbitration notice on 14.10.2023. He submits

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that the respondent did not reply. Hence, he submits that there is an arbitral dispute between the parties and the same has to be resolved through arbitration. Hence, on these grounds, he prays to allow the petition.

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Perused the records and considered the

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submissions of the learned counsel for the petitioner.

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The point that arises for consideration is as

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follows:

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“Whether the petitioner made out a ground to refer the arbitral dispute to the Arbitrator in terms of clause 10 of the Operator Agreement dated 04.06.2019 vide Annexure-A as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules?”

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NC: 2025:KHC:24579 CMP No. 438 of 2023

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HC-KAR

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There is no dispute regarding the execution of the Operator Agreement on 04.06.2019. The lease period is for 3 years at a monthly rent of Rs.3,70,000/-. The respondent paid a refundable security deposit of Rs.14,00,000/-. The petitioner terminated the tenancy by issuing a legal notice on 19.12.2021 and demanded to pay the arrears of rent. The respondent did not comply with the legal notice dated 19.12.2021. The petitioner filed a suit in O.S.No.7591/2022 for the recovery of possession and arrears of rent. The respondent appeared in the said suit and filed an application under Order VII Rule 11 of CPC for rejection of the plaint on the ground that there exists an arbitration clause in the Operator Agreement dated 04.06.2019. The petitioner has filed a memo for withdrawal of the said suit with the liberty to approach the arbitrator. The memo was taken on record and trial Court permitted the petitioner to withdraw the suit with the liberty to approach the arbitrator. After disposal of the petition, the petitioner, by issuing an arbitration notice on

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NC: 2025:KHC:24579 CMP No. 438 of 2023

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HC-KAR

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14.10.2013, under Section 21 of the Act of 1996,, invoked

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an arbitration clause, which reads as follows:

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10. DISPUTE RESOLUTION

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a) If a conflict or dispute of any nature arises out of or in connection with the provisions of this Agreement, including the interpretation of this Agreement (hereinafter referred to as a “Dispute”), a Party may, by way of written notice, inform the other Party of the occurrence of a Dispute, upon the issuance of which, the Parties shall enter into discussions in good faith to resolve the Dispute, in case the Dispute is not settled within 39 (thirty) days of the date of the Dispute, it shall be referred to arbitration in accordance with the Clause 9.2 below.

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b) Any dispute which remains unresolved under Clause 9.1 above shall be referred to and finally resolved by way of arbitration, to be conducted by a sole arbitrator to be mutually appointed by the Parties.

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c) The Arbitrator shall give a reasoned decision or award in writing, including as to the costs and expenses of the arbitration. The Arbitrator’s decision or award shall be final and binding on the Parties. The Parties agree that the Arbitrator’s award may be enforced against the Parties in any competent Court of law and the Parties agree to be bound thereby and to act accordingly.

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d) The venue for the arbitration proceedings shall be Bangalore. Each party shall co-operate in good faith to expedite, to the maximum extent practicable, the conduct of any arbitral proceeding commenced under this Agreement.

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HC-KAR

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e) Each Party shall bear and pay its own costs, expenses, fees, disbursements and other charges of its counsel, in connection with the arbitration proceedings except as may be otherwise determined by the Arbitrator.

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f) Nothing contained herein above shall prejudice either Party’s right to have recourse to any Court having jurisdiction for the purpose of interim or interlocutory orders.

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g) When any Dispute occurs and is under arbitration, except for the matters under dispute, the Parties shall continue to exercise their remaining respective rights, and fulfil their remaining respective duties and obligations, under this Agreement.

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The arbitration notice was served on the respondent. Despite the service of notice, the respondent did not reply to the arbitration notice. Admittedly, there is an arbitration clause in the Operator Agreement dated 04.06.2019 and the arbitral dispute aroses between the petitioner and the respondent and the said dispute is to be resolved through arbitration. The petitioner has made out a ground to refer the dispute to the arbitrator. Hence, I answer the point for consideration in the affirmative.

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NC: 2025:KHC:24579 CMP No. 438 of 2023

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HC-KAR

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Accordingly, I proceed to pass the following:

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ORDER

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i. The Civil Miscellaneous Petition is allowed.

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ii. Hon’ble Justice Sri Ganesh B, learned District Judge (Rtd.), is nominated as an Arbitrator to resolve the dispute between the parties to the petition in terms of clause 10 of the Operator Agreement dated 04.06.2019 vide Annexure-A as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules.

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

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In view of the dismissal of the appeal, the pending

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IA’s if any, does not survive for consideration. Accordingly, disposed of.

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Sd/(ASHOK S.KINAGI) JUDGE

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SSB

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CT: BHK

Sri M Krishna v. Colife Advisory Private Limited

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Sri M Krishna v. Colife Advisory Private Limited

Case brief

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