Karnataka High Court
M/S Nishanth Electricals vs Soi Design And Crest Llp on 11 March, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2024:KHC:9899
CMP No. 446 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF MARCH, 2024
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
CIVIL MISC. PETITION NO. 446 OF 2023
BETWEEN:
M/S NISHANTH ELECTRICALS
OFFICE AT NO.215,
2ND MAIN ROAD, 5TH CROSS ,
ANNAPURNAWESHWARI NAGARA,
NEAR NAGARBHAVI BDA COMPLEX,
BENGALURU 560 091.
REP BY ITS PROPRIETOR,
MR NISHANTH K,
S/O LATE K N KITTAPPA.
...PETITIONER
(BY SRI. CHETHAN B.,ADVOCATE)
AND:
SOI DESIGN AND CREST LLP
KALA SATWA, A-120, 4TH AVENUE,
SMILEE GREENS, HUSKUR ROAD,
BENGALURU 560 099,
REP BY ITS PROPRIETOR,
Digitally signed by MR MADHAVARAJ V SIRSI.
LEELAVATHI S R
...RESPONDENT
Location: HIGH
COURT OF (BY SRI. SUSHEN S.,ADVOCATE)
KARNATAKA
THIS CIVIL MISC. PETITION UNDER SEC.11(6) OF THE
ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO A) EXERCISE
THE POWER UNDER SECTION 11(6) OF THE ARBITRATION AND
CONCILIATION ACT, 1996 FOR APPOINTMENT OF THE SOLE
ARBITRATOR AS PRAYED FOR BY THE PETITIONER IN ORDER TO
ADJUDICATE THE DISPUTE BETWEEN THE PETITIONER AND
RESPONDENT IN THE INTEREST OF EQUITY AND JUSTICE AS PER
AGREEMENT OF SERVICE DATED: 17.03.2020 CLAUSE 17 AS PER
ANNEXURE-A AND ETC.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, THE
COURT MADE THE FOLLOWING:
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NC: 2024:KHC:9899
CMP No. 446 of 2023
ORDER
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.17 in the Agreement dated 17.03.2020 entered into between the parties.
2. Clause-17 of the said Agreement, which contains an Arbitration clause, reads as under:-
17. Dispute Resolution Any dispute in respect of this Agreement may be referred to arbitration by either party. Such arbitration may be conducted by a single arbitrator appointed by mutual consent of the parties and shall be conducted in accordance with the Indian Arbitration and Conciliation Act,1996. The arbitration shall be held in Bangalore, India and shall be conducted in English. The decision of the arbitrator shall be final and binding and conclusive on the Parties and the judgment thereon may be entered into any court having jurisdiction over the parties and the subject matter thereof.
3. 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 -3- NC: 2024:KHC:9899 CMP No. 446 of 2023 petitioner invoked the aforesaid arbitration clause and issued a notice dated 22.07.2023 to the respondent putting forth various claims and contentions and nominating and appointing a sole arbitrator and calling upon the respondent to give their concurrence / consent to refer the dispute to arbitration.
4. The respondent sent a reply dated 21.08.2023 through their lawyer disputing and denying the claims and contentions of the petitioner and informing them that they do not concur with the nominee-arbitrator appointed by the petitioner. However, the respondent has not disputed the existence of arbitration agreement / clause in the contracts entered into between the parties. Subsequently, the 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, the petitioner is before this Court by way of the present petition. Even in the present petition, while the respondent has not filed its statement of objections, they have denied and disputed the various claims of the petitioner. However, the respondent does not dispute or deny the existence of arbitration agreement / clause in the Agreement entered into between the parties. -4-
NC: 2024:KHC:9899 CMP No. 446 of 2023
5. 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 Agreement 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 Sri.Ashok B.Hinchigeri, Former Judge of this Court, to act as the sole Arbitrator to resolve the dispute between the parties under the provisions of the Arbitration and Conciliation Act, 1996, as per the Rules governing the Arbitration and Conciliation Centre (Domestic & International) at Bengaluru.
6. In the result, I pass the following:-
ORDER
(i) Petition is hereby allowed.
(ii) Sri.Ashok B. Hinchigeri, Former Judge of this Court is hereby appointed as the sole Arbitrator to resolve the dispute between the parties as per the Rules governing the Arbitration and Conciliation Centre (Domestic & International) at Bengaluru.-5-
NC: 2024:KHC:9899 CMP No. 446 of 2023
(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.
(iv) A copy of this order be sent forthwith to the Arbitration and Conciliation Centre (Domestic & International), Khanija Bhavan, Bengaluru, for proceeding further and also to Sri.Ashok B.Hinchigeri, Former Judge of this Court to the address available with the said Centre.
(v) Registry is directed to return all original documents produced by any of the parties after obtaining Photostat copies of the same.
Sd/-
JUDGE Srl.