Karnataka High Court
Sameer M vs D F Silverline Constructions on 15 July, 2022
Author: B. M. Shyam Prasad
Bench: B. M. Shyam Prasad
IN THE HIGH COURT OF KARNATAKA AT
BENGALURU
DATED THIS THE 15TH DAY OF JULY 2022
BEFORE
THE HON'BLE MR. JUSTICE B. M. SHYAM PRASAD
CIVIL MISCELLANEOUS PETITION NO.163/2022
BETWEEN :
SAMEER M
S/O KHAWAJA MOHIYDDIN,
AGED ABOUT 29 YEARS,
PRESENTLY R/AT DOOR NO 144,
1ST MAIN, MLA LAYOUT, R T NAGAR,
BENGALURU 560 032.
... PETITIONER
(By SRI. NATARAJ G., ADVOCATE)
AND :
D. F. SILVERLINE CONSTRUCTIONS
A PARTNERSHIP FIRM HAVING ITS
REGISTERED OFFICE AT 201,
BARTON CENTRE 84, M G ROAD,
BENGALURU 01, REPTD BY ITS
MANAGING PARTNER MR DANISH FAROOK.
... RESPONDENT
(By SMT.BHARATI PATIL, ADVOCATE)
THIS CIVIL MISCELLANEOUS PETITION IS FILED
UNDER SEC.11(6) OF THE ARBITRATION AND
CONCILIATION ACT 1996, PRAYING TO APPOINT AN
ARBITRATOR TO ARBITRATE THE DISPUTE THAT HAS
ARISEN BETWEEN THE PETITIONER AND RESPONDENT IN
ACCORDANCE WITH THE MOU DATED 28/02/2014 BY
2
REFERRING THE SAME TO THE ARBITRATION CENTRE,
KHANIJA BHAVAN, AT BENGALURU.
THIS PETITION COMING ON FOR ADMISSION, THIS
DAY, THE COURT MADE THE FOLLOWING:
ORDER
The parties to the proceedings have signed a series of documents including the Memorandum of Understanding dated 28.02.2014 and the subsequent Sale Deed dated 04.03.2014. The agreement for resolution of dispute by arbitration is contained in the Memorandum of Understanding dated 28.02.2014, and the agreement is for arbitration by a sole Arbitrator in accordance with the provisions of the Arbitration and Conciliation Act, 1996.
The petitioner vide the Reply Notice dated 16.06.2016, responding to the legal notice dated 03.06.2016 issued on behalf of the respondent, has asserted that the Memorandum of Understanding could not have been terminated and he is entitled to recover certain monies. This exchange of notice is during the 3 year 2016. The petitioner has again issued notice in the month of June 2019 raising dispute contending that he is entitled to receive a sum of Rs.1 Crore and invoking the arbitration clause for the commencement of the arbitration proceedings. On behalf of the respondent, the exchange of the two sets of notices is not contested, and it is also not contested that the respondent has not responded to the last of the notices.
The learned counsel for the respondent submits that because the Memorandum of Understanding is terminated with the issuance of the legal Notice dated 03.06.2016, the petitioner's claim for money, and therefore, the commencement of the arbitration proceedings, would be time barred. As such this Court must reject the petition.
This Court, on perusal of the statements in the legal notice issued on behalf of the petitioner in the months of June 2016 and September 2019, is of the 4 considered view that leaving all the contentions open to be decided in the arbitration proceedings, a sole Arbitrator must be appointed to enter reference of the dispute. The petitioner has caused notice for appointment of a retired District Judge to enter reference of the dispute and conduct the arbitration proceedings at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru. In the light of afore, the following:
ORDER [a] The petition is allowed; [b] Sri. S.N. Navalgund, retired District Judge, No.2083, 4th Cross, Judicial Layout, GKVK Post, Yelahanka, Bengaluru - 560 065, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and the respondent and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and 5 International), Bengaluru according to the Rules governing the Arbitration and Conciliation Centre (Domestic and International), Bengaluru;
[c] The Registry is directed to communicate this order to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru, and Sri. S.N. Navalgund, retired District Judge, No.2083, 4th Cross, Judicial Layout, GKVK Post, Yelahanka, Bengaluru - 560 065, as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996.
Sd/-
JUDGE AN/-