Karnataka High Court
Rekha S vs Mac Precitec India on 10 October, 2023
Author: B M Shyam Prasad
Bench: B M Shyam Prasad
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NC: 2023:KHC:36740
CMP No. 268 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 10TH DAY OF OCTOBER, 2023
BEFORE
THE HON'BLE MR JUSTICE B M SHYAM PRASAD
CIVIL MISC. PETITION NO. 268 OF 2023
BETWEEN:
1. REKHA S
W/O LATE SHRILAKSHMIPATHI,
AGED ABOUT 47 YEARS,
RESIDING AT NO 5/3, 24TH CROSS,
JAYANAGARA 6TH BLOCK,
BSK 3RD STAGE,
BENGALURU 560007.
2. VEDANTH L
S/O LATE SHRILAKSHMIPATHI,
AGED ABOUT 47 YEARS,
RESIDING AT NO 5/3, 24TH CROSS,
JAYANAGARA 6TH BLOCK,
BSK 3RD STAGE,
BENGALURU 560007
REPRESENTED BY NATURAL GAURDIAN
Digitally
SMT REKHA S.
signed by
NARASIMHA
MURTHY 3. VEDITH L
VANAMALA
Location: S/O LATE SHRILAKSHMIPATHI,
HIGH AGED ABOUT 47 YEARS,
COURT OF
KARNATAKA RESIDING AT NO 5/3, 24TH CROSS,
JAYANAGARA 6TH BLOCK, BSK 3RD STAGE,
BENGALURU 560007
REPRESENTED BY NATURAL GAURDIAN
SMT REKHA S.
...PETITIONERS
(BY SRI. RAKESH B BHATT, ADVOCATE)
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CMP No. 268 of 2023
AND:
1. MAC PRECITEC INDIA
A REGISTERED PARTNERSHIP FIRM
SITUATED AT NO B 291(A) 7TH MAIN
PEENYA 2ND STAGE,
PEENYA INDUSTRIAL AREA,
BANGALURU 560058
REP BY ITS PARTNERS.
2. H S SHIVAKUMAR
S/O SUBBAIAH
AGED ABOUT 57 YEARS,
RESIDING AT NO E454, 8TH BLOCK,
VISHWESHWARAIAH LAYOUT,
NEAR KEMPEGOWDA CIRCLE,
MUDDAIAHANAPALYA VISWANEEDAM
BANGALORE 560091.
3. GEETHA C GOWRISHANKAR
W/O GOWRISHANKAR,
AGED ABOUT 46 YEARS,
RESIDING AT NO 18, GANGAMMA GARDEN,
MALGALA MAIN ROAD,
NAGARABHAVI 2ND STAGE,
VISHWANDEEDAM POST
BANGALORE 560091.
4. SUDHIR B NAGALEEKAR
S/O BASAVARAJABASAPPA,
AGED ABOUT 48 YEARS,
RESIDING NO 40 AVYUKTHA 3RD MAIN
KAHADHI LAYOUT,
KATHRIGUPPE MAIN ROAD,
NEAR GANESH TEMPLE,
VIVEKANANDA NAGAR,
BANASHANKARI 3RD STAGE,
BANGALORE 560085.
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CMP No. 268 of 2023
5. RAMACHANDRA N
S/O NARAYANAPPA NAGARAJU,
AGED ABOUT 44 YEARS,
RESIDING AT NO 79, 12TH CROSS,
BOVIPALYA MAHALAKSHMIPURAM,
BANGALORE 560086.
6. ROHINI G KULKARNI
W/O GURURAJ,
AGED ABOUT 45 YEARS,
RESIDING AT NO 3, 1ST FLOOR,
PRAJWAL MINI APRATMENT,
6TH CROSS, NEAR VASKHAVNOOR EXTENSION,
NAGASANDRA
BANGALORE 560073.
...RESPONDENTS
(BY SRI. CHANDRASHEKAR H B.,ADVOCATE FOR R1 TO
R6)
THIS CIVIL MISC. PETITION IS FILED UNDER
SEC.11(6) OF THE ARBITRATION AND CONCILIATION
ACT 1996, PRAYING TO APPOINT SHRI B J MAHESH,
ADVOCATE BENGALURU OR ANY OTHER PERSON THAT
THIS HONBLE COURT MAY DEEM FIT AS THE SOLE
ARBITRATOR TO ADJUDICATE THE DISPUTES THAT
HAVE ARISEN BETWEEN THE PARTIES ARISE OUT OF
THE PARTNERSHIP DEED DATED 08/08/2014,
ANNEXURE-B (CLAUSE 21).
THIS PETITION, COMING ON FOR ADMISSION,
THIS DAY, THE COURT MADE THE FOLLOWING:
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CMP No. 268 of 2023
ORDER
This petition is for appointment of a sole Arbitrator and the petitioners, who admittedly are the legal heirs of Sri. Lakshmipathi S/o Siddappa T N, rely upon the following circumstances to justify the petition for appointment of a sole Arbitrator, and the agreement for arbitration in one of the Reconstitution Deed which reads as under:
"During the continuance of the partnership or at any time thereafter, any dispute or difference relating to the partnership or it's business, which may arise between the partners or their respective heirs, the same shall be decided in accordance with the provisions of the Indian Arbitration and Conciliation Act, 1996 as amended from time to time. The award of the arbitrator shall be final and binding on the partners and their legal representatives."
2. The petitioners rely upon the fact that a Partnership Firm under the name and style 'M/s. Mac Precitec India' is constituted with Sri. Lakshmipathi as a Partner on 29.10.2013 and that this Partnership -5- NC: 2023:KHC:36740 CMP No. 268 of 2023 is reconstituted on 08.08.2014 and 01.04.2019 [the agreement for arbitration is in the first of the aforesaid Reconstitution Deeds dated 08.08.2014]. The petitioners also contend that Sri Lakshmipathi has died leaving behind them as his legal heirs and they are entitled for a share in the firm's value as of the date of the agreement, but the respondents, who have continued the firm, have offered only a sum of Rs.45,00,000/- in settlement of the dues.
3. Sri Rakesh B Bhatt, the learned counsel for the petitioners, relies upon these circumstances, and Sri Chandrashekar H B, the learned counsel for the respondents, on the other hand, submits that there is no dispute inasmuch as the respondents, in paying Rs.45,00,000/- to the petitioners, have settled all their claims and the respondents' consistent stand has been that the petitioners would only be entitled to such amount. Sri Chandrashekar H B also submits that after the petition is filed, the nature of -6- NC: 2023:KHC:36740 CMP No. 268 of 2023 the firm has undergone a change, and it is now incorporated as a 'Private Limited Company', and he proposes to rely upon a Certificate in this regard.
4. The merits of the petitioners' claim for the appoint of a sole arbitrator is examined in the light of the opposition as aforesaid. This Court is of the considered view that with the agreement for arbitration being undisputed and the petitioners contesting that the value of Sri. Lakshmipathi's share in the assets of the firm as on the date of his demise was Rs.45,00,000/- only, there is an arbitrable dispute, and the merits of this dispute will have to be decided in the Arbitral Tribunal. Therefore, the following:
ORDER [a] The petition is allowed, and Hon'ble Sri. Justice H G Ramesh, a former Judge of the High Court of Karnataka, is appointed as the Sole Arbitrator to enter reference of the -7- NC: 2023:KHC:36740 CMP No. 268 of 2023 dispute between the petitioner and the respondents and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the Centre.
[b] The Registry is directed to communicate this order [through E-mail] to the Arbitration and Conciliation Centre (Domestic and International) Bengaluru and Hon'ble Sri. Justice H G Ramesh, a former Judge, High Court of Karnataka, Address: No.342A, 10th Main, Sector 7, HSR Layout, Bengaluru-560 102 [E-mail [email protected]] as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996.
Sd/-
JUDGE AN/-