Karnataka High Court
M/S Indo German Plantation Machinery ... vs M/S Bluecat Paper on 24 January, 2025
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NC: 2025:KHC:3131
CMP No. 208 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 24TH DAY OF JANUARY, 2025
BEFORE
THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
CIVIL MISC. PETITION NO. 208 OF 2023
BETWEEN:
M/S INDO GERMAN PLANTATION MACHINERY
COMPANY PRIVATE LIMITED
HAVING ITS REGISTERED OFFICE AT NO.302, TULIP,
ESTEEM GARDENIA APARTMENTS,
SAHAKARA NAGAR, BANGALORE- 560 092
REPRESENTED BY ITS DIRECTOR
MRS. USHA VIJAY KUMAR
(A COMPANY INCORPORATED UNDER COMPANIES
ACT, 1956 AND SUBSISTING UNDER COMPANIES
ACT 2013)
Digitally signed ...PETITIONER
by B VEENA (BY SRI. VENUGOPAL M S., DVOCATE)
KUMARI
Location: AND:
HIGH COURT
OF
KARNATAKA M/S BLUECAT PAPER,
REPRESENTED BY ITS SOLE PROPRIETOR
MS. KAVYA MADAPA
W/O MR. NIKHIL REDDY
RESIDING AT CHAMUNDESHWARI NAGAR,
MADIKERI, KODAGU DISTRICT- 571201
ALSO AT
M/S BLUECAT PAPER,
HAVING ITS UNIT AT SHED NO.22 A IN PEENYA,
1ST PHASE, PEENYA INDUSTRIAL AREA,
SITUATED IN SY.NO.41 OF PEENYA VILLAGE,
YESHWANTHPURA HOBLI,
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NC: 2025:KHC:3131
CMP No. 208 of 2023
BANGALORE
REPRESENTED BY ITS SOLE PROPRIETOR
MS. KAVYA MADAPPA
W/O MR. NIKHIL REDDY
...RESPONDENT
(BY SRI. DINESH SOLANKI., ADVOCATE)
THIS CMP IS FILED UNDER SEC.11 (6) (A) OF THE
ARBITRATION AND CONCILIATION ACT, 1996, PRAYING THAT
THIS HON'BLE COURT BE PLEASED TO APPOINT AN
ARBITRATOR TO RESOLVE THE EXISTING DISPUTE BETWEEN
THE PARTIES HEREIN IN TERMS OF THE ARBITRATION CLAUSE
CONTAINED IN CLAUSE 11 OF THE LEASE DEED 01/09/2017
(ANNEXURE A) AND GRANT SUCH OTHER AND FURTHER
RELIEFS IN THE ENDS OF JUSTICE AND EQUITY.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
ORAL ORDER
This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act' for short) seeking appointment of Sole Arbitrator and to resolve the dispute between the parties in terms of the lease agreement dated 01.09.2017.
2. The petitioner, acting as the landlord, claims that a lease deed was executed with the respondent, -3- NC: 2025:KHC:3131 CMP No. 208 of 2023 which included an arbitration clause for resolving disputes arising from the lease agreement. Alleging a default in rent payments by the respondent, the petitioner terminated the lease and issued a notice demanding payment of the arrears. In response to the petitioner's notice, the respondent disputed the claims, prompting the petitioner to issue another notice dated 11.04.2023. In this notice, the petitioner invoked the arbitration clause contained in the lease deed and proposed the appointment of an arbitrator to resolve the dispute. As the respondent failed to comply with the demands made in the notice, the petitioner filed the present Civil Miscellaneous Petition under Section 11(5) of the Arbitration and Conciliation Act, seeking the appointment of a Sole Arbitrator.
3. The respondent was duly served with notice of this petition and is represented by learned counsel.
4. The respondent's primary contention is that the arbitration clause within the lease deed loses its enforceability due to the determination of the lease period. -4-
NC: 2025:KHC:3131 CMP No. 208 of 2023 On this basis, the respondent argues that the petitioner could not validly invoke the arbitration clause, rendering the petition under Section 11(5) of the Act untenable.
5. Considering the rival submissions, this Court is of the opinion that the objections raised by the respondent, including the maintainability of the arbitration clause in light of the lease's termination, are issues that require adjudication by the arbitrator. Consequently, all such objections, including those related to the enforceability of the arbitration clause post-termination of the lease, should be addressed in arbitration proceedings.
6. It is recorded that the respondent tenant has handed over possession of the premises by returning the keys on 19.02.2024.
7. After thorough review of petition, annexures and supporting documents, this Court is satisfied that the petitioner has appropriately invoked this clause and has met all the procedural prerequisites as outlined under -5- NC: 2025:KHC:3131 CMP No. 208 of 2023 Section 11(5) of the Arbitration and Conciliation Act, 1996. Accordingly, this Court is satisfied that the petitioner is entitled to seek the appointment of an arbitrator for the adjudication of the dispute.
8. In the light of the aforesaid clause of arbitration and the contentions advanced by the petitioner, this Court proceeds to pass the following:
ORDER
(i) The Civil Miscellaneous Petition is allowed appointing Shri. Gangadhara A.G., Former Retired District and Sessions Judge as the sole Arbitrator to enter reference of the disputes between the petitioner and the respondent and conduct proceedings at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru, according to the Rules governing the said Arbitration Centre. -6-
NC: 2025:KHC:3131 CMP No. 208 of 2023
(ii) All contentions inter se parties are left open for adjudication in the arbitration proceedings.
(iii) The Office is directed to communicate this order to the Arbitration and Conciliation Centre and to Shri. Gangadhara A.G., Former Retired District and Sessions Judge, as required under the Arbitration and Conciliation Centre Rules, 2012.
SD/-
(SACHIN SHANKAR MAGADUM) JUDGE BVK List No.: 3 Sl No.: 5