Srk Powertech Private Limited Vs Avec Amor Enterprises LLP

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NC: 2025:KHC:19176 CMP No. 533 of 2024

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6^TH DAY OF JUNE, 2025

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BEFORE

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THE HON'BLE MR JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 533 OF 2024

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BETWEEN:

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SRK POWERTECH PRIVATE LIMITED REGISTERED UNDER THE COMPANIES ACT, 2013, WITH ITS REGISTERED OFFICE AT, PLOT NO 51-52, UDYOG VIHAR, PHASE IV, GURUGRAM, GURGAON- 122001, HARYANA, INDIA.

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Digitally signed by VANAMALA N

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Location: High Court of Karnataka

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ALSO AT, 2^ND FLOOR, VAISHNAVI PROPERTIES, 30/1, SILICON TERRACES, HOSUR MAIN ROAD, KORAMANGALA, ADUGODI, BENGALURU- 560095. REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR. VINAY KUMAR JULURI.

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…PETITIONER

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(BY MS. SUSHMA S.RAO., ADVOCATE)

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AND:

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AVEC AMOR ENTERPRISES LLP REGISTERED UNDER THE LIMITED LIABILITY PARTNERSHIP ACT, 2008, WITH ITS REGISTERED OFFICE AT, L-111, WINDSOR PARK, PLOT NO.-5 VAIBHAV KHAND, INDIRAPURAM, SHIPRA SUN CITY,

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NC: 2025:KHC:19176 CMP No. 533 of 2024

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HC-KAR

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GHAZIABAD, UTTAR PRADESH - 201014. REPRESENTED BY ITS DESIGNATED PARTNERS, MS. NIDHI JAIN AND MR. RAJEEV JAIN.

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…RESPONDENT

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(BY SRI. GAURAV C PATIL.,ADVOCATE)

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THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT., PRAYING TO, APPOINT SHRI.S.N.NAVALGUND, RETIRED DISTRICT JUDGE HAVING ADDRESS AT NO.1015, 8^TH MAIN, JUDICIAL LAYOUT GKVK (POST), BANGALORE, KARNATAKA 560065, AS THE SOLE ARBITRATOR IN TERMS OF CLAUSE 25.1 OF THE DISTRIBUTION AGREEMENT DATED 22.06.2023 PRODUCED AS ANNEXURE B, IN ORDER TO HELP CONSTITUTE THE ARBITRAL TRIBUNAL AND ADJUDICATE ALL DISPUTES ARISING BETWEEN THE PETITIONER AND THE RESPONDENT IN RELATION TO THE DISTRIBUTION AGREEMENT DATED 22.06.2023.

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

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CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD

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ORAL ORDER

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The petitioner has filed this petition for appointment of a sole arbitrator referring to the

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NC: 2025:KHC:19176 CMP No. 533 of 2024

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HC-KAR

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Distribution Agreement dated 22.06.2023 and the agreement for arbitration therein reads as under:

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"26.1. This Agreement and all exhibits/annexures hereto shall be governed, construed and interpreted according to the laws of India. All or any disputes arising out of or touching upon or in relation to the terms of this Agreement including the interpretation and validity of the terms thereof and the respective rights and obligations of the Parties shall be settled amicably by mutual discussion failing which the same shall be settled through arbitration. The arbitration shall be governed by the Arbitration & Conciliation Act, 1996 or any statutory amendments/modifications thereto for the time being in force. The arbitration proceedings shall be held at Bangalore by a sole arbitrator who shall be appointed by mutually by the Parties and whose decision shall be final and binding upon the Parties. Subject to the said arbitration clause, the courts at Bangalore shall have exclusive jurisdiction in relation to matters or disputes arising from this Agreement."

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It is seen from the records produced that

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the petitioner has caused legal notice dated

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NC: 2025:KHC:19176 CMP No. 533 of 2024

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HC-KAR

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28.09.2024 invoking the agreement for arbitration, but the respondent has caused no reply. The petitioner has also applied under Section 9 of the Arbitration and Conciliation Act, 1996 in Com. AA No.274/2024 in which the petitioner has the advantage of an interim order. The Commercial Court has presently allowed the application, but the petitioner has filed another application for some modification.

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Mrs. Sushma S. Rao and Mr. Gaurav C.Patil, the learned counsels for the parties, are heard. If Mrs. Sushma S. Rao relies upon the aforesaid circumstances for the appointment of a sole arbitrator, Sri Gaurav C. Patil submits that the respondent opposes the appointment of a sole arbitrator because the agreement has come about because the respondent brought the petitioner under coercion and undue influence. The learned counsel submits that the respondent can establish both

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5 - NC: 2025:KHC:19176 CMP No. 533 of 2024

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HC-KAR

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undue influence and coercion in the light of the indisputable fact that there was business between the petitioner and the respondent for over a decade on an oral arrangement and that the petitioner alone was the respondent's customer.

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This Court must appoint an arbitrator as is requested, and it will suffice for this Court to observe that the merits of this defense will have to be examined in the arbitral proceedings and the allegation will not be under the category of egregious fraud to reject the petition. Sri Gaurav C. Chavan also makes a request for reference of the petition to the mediation, but this Court is of the view that mediation could always be explored besides other private conciliation proceedings. In the light of the afore, the following:

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ORDER

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[a] The petition is allowed.

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HC-KAR

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[b] Hon'ble Mr. Justice Rajendra M Badamikar, a former Judge of this Court is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and the respondent and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and

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International), Bengaluru according to the Rules governing the Centre. All questions are left open for due consideration.

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[c] The Registry is directed to communicate this order [by E-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and also to the Hon'ble Mr. Justice Rajendra M Badamikar, a former Judge of this Court, Address: Flat No.103, 1^st Floor, Birla Apple

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HC-KAR

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Spire, Sy No.127/1, Pantarapalya, near Nayandahalli Metro Station, Mysuru main road, Bengaluru - 560 039[email:rajendrabadamikar@gmail.

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com] as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996.

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Sd/(B M SHYAM PRASAD) JUDGE

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SA ct:sr

Srk Powertech Private Limited v. Avec Amor Enterprises LLP

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Srk Powertech Private Limited v. Avec Amor Enterprises LLP

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