Karnataka High Court
M/S. Pradeep Construction Company vs Shivamogga Smart City Ltd on 5 December, 2025
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
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NC: 2025:KHC:51538
CMP No. 27 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF DECEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
CIVIL MISC. PETITION NO. 27 OF 2025
BETWEEN:
M/S. PRADEEP CONSTRUCTION COMPANY
REPRESENTED BY ITS PARTNER
SRI JAGANNATH SHETTY
ENGINEERING'S AND CONTRACTORS,
AGED ABOUT 56 YEARS,
ADMIN OFFICE NO.4, VRINDAVAN APARTMENT,
OPP BUB COLLEGE, VIDYANAGAR
HUBLI - 580021
...PETITIONER
(BY SRI. HARISCHANDRA REDDY P, ADVOCATE)
AND:
SHIVAMOGGA SMART CITY LTD.,
REPRESENTED BY ITS
1. THE MANAGING DIRECTOR
Digitally signed SHIVAMOGGA SMART CITY LTD
by SHWETHA 1ST FLOOR, CORPORATION BUILDING BLOCK,
RAGHAVENDRA
S N MARKET, NEHRU ROAD,
Location: HIGH
COURT OF SHIVAMOGGA - 577201
KARNATAKA
2. THE EXECUTIVE ENGINEER
SHIVAMOGGA SMART CITY LTD.,
SHIVAMOGGA - 577201
3. THE INSTITUTE OF ENGINEERS
KARNATAKA STATE CENTRE,
NO 03, DR B R AMBEDKAR VEEDHI
OPP INDIAN EXPRESS BUILDING
BENGALURU, KARNATAKA - 560001
...RESPONDENTS
(BY SRI. SHOWRI H R, ADVOCATE FOR R1)
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NC: 2025:KHC:51538
CMP No. 27 of 2025
HC-KAR
THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5), (6)
(C) AND (8) R/W SEC.12 OF ARBITRATION AND CONCILIATION ACT
1996., PRAYING (i) TO PASS AN APPROPRIATE ORDER FOR
APPOINTMENT OF INDEPENDENT AND IMPARTIAL SOLE ARBITRATOR
AS PER THE PETITIONER REQUESTS UNDER THE PROVISIONS OF
SECTION 11(6) SUB-SECTION (c) OF THE ARBITRATION AND
CONCILIATION (AMENDMENT) ACT, 2019 TO ADJUDICATE THE
DISPUTES/ CLAIMS BETWEEN THE PARTIES FOR THE WORK OF
DEVELOPMENT OF CORPORATION PARK (PARK-17) IN SHIVAMOGGA
CITY AGREEMENT NO.55/9.03.2020 (ANNEXURE - C & A).
(ii) TO PASS AN APPROPRIATE ORDER AS PER THE CLAUSE NO.4.1
OF SCC AND ALSO (AMENDMENT) ACT, 2019 AS THE APPOINTING
AUTHORITY RESPONDENT NO.3, INSTITUTE OF ENGINEERS,
BANGALORE FAILED TO APPOINT SOLE ARBITRATOR, BY
APPOINTING INDEPENDENT AND IMPARTIAL SOLE ARBITRATOR
UNDER SEC.11(8) OF THE ACT FOR SETTLEMENT OF
DISPUTES/CLAIMS BETWEEN THE PARTIES AS PER THE SPECIAL
CONDITIONS OF CONTRACT.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ
ORAL ORDER
1. The petitioner is before this Court seeking for the following reliefs:
a. To pass an appropriate order for appointment of independent and impartial sole arbitrator as per the petitioner requests under the provisions of section 11(6) sub-section (c) of the arbitration and conciliation (amendment) act, 2019 to adjudicate the disputes/ claims between the parties for the work of development of corporation park (park-17) in Shivamogga city agreement no.55/9.03.2020 (Annexure - C & A).
b. To pass an appropriate order as per the clause No.4.1 of SCC and also (amendment) act, 2019 as the appointing authority respondent No.3, institute of engineers, Bangalore failed to appoint sole -3- NC: 2025:KHC:51538 CMP No. 27 of 2025 HC-KAR arbitrator, by appointing independent and impartial sole arbitrator under sec.11(8) of the act for settlement of disputes/claims between the parties as per the special conditions of contract.
c. Pass such other orders as the Hon'ble Court deems fit in the interest of justice and equity.
d. Make any further scheme for dealing with the matter as contemplated under Section 11 of the Arbitration and Conciliation (Amendment) act 2019.
2. A notice of the tender had been issued by the respondent which is governed by an arbitration Clause in terms of Clause 4.1, which is reproduced hereunder for easy reference:
"The procedure for arbitration shall be as follows:
(a) In case of dispute or difference arising between the Employer and the Contractor relating to any matter arising out of or connected with this agreement it shall be settled in accordance with the Arbitration and Conciliation Act, 1996. The disputes or differences shall be referred to a Sole Arbitrator. The Sole Arbitrator shall be appointed by agreement between the parties. If the parties fail to reach such agreement/consensus then the sole arbitrator shall be appointed by the Appointing Authority, namely, Institute of Engineers, Bangalore.
(b) Arbitration proceedings shall be held at Bangalore.
Karnataka, India.
(c) The cost and expenses of arbitration proceedings will be paid as determined by the Arbitrator. However the expenses incurred by each party in connection with the preparation, presentation, etc., shall be borne by each party itself.
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NC: 2025:KHC:51538 CMP No. 27 of 2025 HC-KAR
(d) Performance under the contract shall continue during the arbitration proceedings and payments due the Contractor by the Employer shall not be withheld, unless they are the subject matter of the arbitration proceedings.
3. A perusal of the aforesaid clause would indicate that the arbitrator has to be appointed by the Institute of Engineers, Bangalore. When this is pointed out to the counsel for the petitioner, the petitioner seeks permission to withdraw the above petition with liberty to approach the Institute of Engineers for appointment of an arbitrator by following the due procedure.
4. Reserving liberty to the petitioner to approach the Institute of Engineers, the petition stands disposed. Petitioner shall be entitled to the benefit of Section 14 of the Limitation Act for the time spent in prosecuting the above petition.
SD/-
(SURAJ GOVINDARAJ) JUDGE PRS List No.: 1 Sl No.: 51