Karnataka High Court
M/S Spandana Housing Llp vs Mr. B Ramakrishna Rao on 6 April, 2018
Author: Vineet Kothari
Bench: Vineet Kothari
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IN THE HIGH COURT OF KARNATAKA, BENGALURU
DATED THIS THE 06TH DAY OF APRIL 2018
BEFORE
THE HON'BLE Dr.JUSTICE VINEET KOTHARI
C.M.P.No.62/2018
BETWEEN:
M/S SPANDANA HOUSING LLP
A LIMITED LIABILITY PARTNERSHIP
INCORPORATED UNDER THE PROVISIONS
OF THE LIMITED LIABILITY
PARTNERSHIP ACT 2008,
HAVING ITS REGISTERED OFFICE AT 65,
5TH CROSS, LAVELLE ROAD,
BANGALORE - 560001.
REPRESENTED BY ITS DESIGNATED
PARTNER M/S SUNLAND VENTURES PVT LTD.
THROUGH ITS DIRECTOR
MR. R. ASHOK KUMAR .
... PETITIONER
(BY SRI DHYAN CHINNAPPA, SENIOR ADV. FOR
SRI ARUN KUMAR K., ADV.)
AND:
1. MR. B. RAMAKRISHNA RAO,
SON OF LATE BYROJI ROA,
AGED ABOUT 60 YEARS
2. MRS. R. SUKANYA,
WIFE OF B. RAMAKRISHNA RAO,
AGED ABOUT 54 YEARS
3. MS. R. BHAGYASHREE,
DAUGHTER OF B. RAMAKRISHNA RAO,
AGED ABOUT 28 YEARS,
Date of Order 06-04-2018 C.M.P.No.62/2018
M/s.Spandana Housing LLP Vs. Mr.B.Ramakrishna Rao & Ors.
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4. MS. R. VIDHYASHREE,
DAUGHTER OF B. RAMAKRISHNA RAO,
AGED ABOUT 26 YEARS,
5. MS. R. DIVYASHREE,
DAUGHTER OF B RAMAKRISHNA RAO,
AGED ABOUT 24 YEARS,
ALL RESIDING NO. 397/A 22,
3RD CROSS, 4TH MAIN ROAD,
SRINAGAR, BENGALURU - 560050.
... RESPONDENTS
(BY SRI D.L. JAGADEESH, SENIOR ADV. FOR
MS. RAKSHITHA D. J., ADV.)
******
THIS C.M.P IS FILED UNDER SECTION 11(5) OF THE
ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO
APPOINT A SOLE ARBITRATOR AS THIS HON'BLE COURT MAY
DEEM FIT AND REFER THE DISPUTES RAISED BY THE
PEITIONER TO ARBITRATION IN TERMS OF THE JOINT
DEVELOPMENT AGREEMENT DATED: 06.10.2016 VIDE
ANNEXURE-A AND ETC.,
THIS C.M.P. COMING ON FOR ADMISSION THIS DAY, THE
COURT MADE THE FOLLOWING:-
ORDER
Mr.Dhyan Chinnappa, Sr.Adv. for Mr.K.Arun Kumar. Adv. for Petitioner Mr.D.L.Jagadeesh, Sr.Adv. for Ms.D.J.Rakshitha, Adv. for Respondents Date of Order 06-04-2018 C.M.P.No.62/2018 M/s.Spandana Housing LLP Vs. Mr.B.Ramakrishna Rao & Ors. 3/6
1. The present petition under Section 11 of the Arbitration and Conciliation Act, 1996, has been filed by the petitioner-M/s.Spandana Housing LLP, seeking an appointment of an Arbitrator in pursuance of Clause-22 of the Joint Development Agreement Annexure-A dated 06.10.2016 against the Respondent-Mr.B.Ramakrishna Rao and four others.
2. Clause-22 of the said Agreement, which is an Arbitration clause reads as under:-
"22. Arbitration & Governing Law 22.1 Any dispute or difference whatsoever that may arise under the terms of this Agreement including the dispute or difference on/relating to construction, meaning, operation or effect of any of the terms of this Agreement or breach or termination thereof shall be referred to and settled by arbitration by a sole arbitrator jointly appointed by both Parties in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any amendment or modification thereto as may then be in force. The Courts in Bangalore city alone to the exclusion of all other courts in India shall have jurisdiction in Date of Order 06-04-2018 C.M.P.No.62/2018 M/s.Spandana Housing LLP Vs. Mr.B.Ramakrishna Rao & Ors.4/6
respect of any/all litigation that may arise in respect of the aforesaid arbitration, subject to arbitration.
22.2 The Parties however agree that no such dispute between the Owners and the Developer shall affect in any manner whatsoever the rights of third parties and/pr the assignees of the respective parties to this Agreement.
22.3 This Agreement shall be governed by the Laws of India".
3. It is submitted that the first notice was given by the petitioner-company to the Respondents vide Annexure-G dated 01.12.2017. A reply to the notice was given by the Respondents vide Annexure-H dated 08.01.2018. Subsequently, the notices were given but the parties have somehow failed to mutually agree for the appointment of the Arbitrator in the present case.
4. However, since the Arbitration clause exists in the Agreement entered into between the parties and an arbitrable dispute also exists, this Court is of the opinion that the present petition deserves to be allowed Date of Order 06-04-2018 C.M.P.No.62/2018 M/s.Spandana Housing LLP Vs. Mr.B.Ramakrishna Rao & Ors. 5/6 u/S.11 of the Act and an independent Arbitrator deserves to be appointed.
5. Both the learned counsels have fairly agreed to the appointment of a Former Judge of this Court, namely, Hon'ble Mr.Justice Anand Byrareddy to act as an 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 Centre at Bangalore.
6. Accordingly, this petition under Section 11 of the Act,1996 is disposed of by appointing Hon'ble Mr.Justice Anand Byrareddy, a Former Judge of this Court, to enter into the said reference of Arbitration and act as an Arbitrator in the present case in the Arbitration Centre, Bengaluru, as per the Rules governing in the said Arbitration Centre.
A copy of this order be sent to the Arbitration Centre, Khanija Bhavan, Bengaluru, for proceeding Date of Order 06-04-2018 C.M.P.No.62/2018 M/s.Spandana Housing LLP Vs. Mr.B.Ramakrishna Rao & Ors. 6/6 further in the matter, on administrative side and also to Hon'ble Mr.Justice Anand Byrareddy, on the address available with the said Arbitration Centre, Bengaluru.
Sd/-
JUDGE Srl.