Karnataka High Court
Incor Infrastructure Private Limited vs M/S Rida Estates Private Limited on 3 October, 2023
Author: B M Shyam Prasad
Bench: B M Shyam Prasad
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NC: 2023:KHC:35547
CMP No. 167 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 3RD DAY OF OCTOBER, 2023
BEFORE
THE HON'BLE MR JUSTICE B M SHYAM PRASAD
CIVIL MISC. PETITION NO. 167 OF 2023
BETWEEN:
INCOR INFRASTRUCTURE PRIVATE LIMITED ,
REP BY ITS AUTHORIZED SIGNATORY,
MR CHAKARAVARTHY REDDY KONDA,
HAVING ITS REGISTERED OFFICE AT
PLOT NO. 69 AND 70 OPPOSITE LANE TO
MADHAPUR POLICE STATION,
KAVURI HILLS MADHAPUR,
HYDERABAD TG 500 033.
...PETITIONER
(BY SRI. ANUPAM RAGHURAMAN., ADVOCATE)
AND:
M/S RIDA ESTATES PRIVATE LIMITED
Digitally REPRESENTED BY ITS DIRECTORS
signed by
NARASIMHA NO. 37/21, SKYLARK CHAMBERS,
MURTHY USLOOR ROAD, BENGALURU -560042.
VANAMALA
Location:
HIGH AND ALSO HAVING
COURT OF
KARNATAKA ADDRESS AT NO. 34,
EGATTUR VILLAGE
THIRUPORUR TALUK,
KANCHAEEPURAM DISTRICT,
TAMIL NADU.
...RESPONDENT
(BY SRI. ARJUN A., ADVOCATE)
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NC: 2023:KHC:35547
CMP No. 167 of 2023
THIS CMP IS FILED UNDER SEC. 11(5) OF THE
ARBITRATION AND CONCILIATION ACT 1996, PRAYING
TO APPOINT AN ARBITRATOR FOR RESOLUTION OF
DISPUTES BETWEEN THE PETITIONER AND THE
RESPONDENT IN TERMS OF CLAUSE 17 OF BINDING
TERM SHEET DATED 18.08.2018 PRODUCED AT
ANNEXURE-A TO ADJUDICATE UPON AND DETERMINE
THE DISPUTES/DIFFERENCE BETWEEN THE PARTIES
ARISING UNDER THE SAID AGREEMENT.
THIS PETITION, COMING ON FOR ADMISSION,
THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
This petition is for the appointment of a sole arbitrator, and the petitioner, apart from the "Binding Term Sheet" dated 18.08.2018, relies upon certain E- mail correspondences to assert an agreement as regards construction of a residential apartment building and resolution of the dispute by arbitration. The agreement for arbitration, which is part of the Binding Term Sheet, reads as under:
"The Parties agree that if any dispute or difference arises between the Parties with respect to this Term Sheet, such dispute shall be referred to arbitration. The Parties shall mutually appoint a sole arbitrator to resolve the dispute or differences. The -3- NC: 2023:KHC:35547 CMP No. 167 of 2023 place of arbitration shall be Bangalore, India and the language of arbitration shall be English. The arbitration proceedings shall be governed by the provisions of the Arbitration and Conciliation Act, 1996."
The petitioner has caused legal notice dated 30.03.2021 raising a claim for a sum of Rs.66,00,000/- and this is followed by the notice dated 06.02.2023 as contemplated under Section 21 of the Arbitration and Conciliation Act, 1996 [for short, 'the Arbitration Act']. The respondent, though served with such notice, has not caused any reply.
If the learned counsel for the petitioner relies upon the afore to contend that all the requisites for exercise of jurisdiction under Section 11 of the Arbitration Act are established, the learned counsel for the respondent proposes to canvass that the agreement for arbitration cannot be acted upon because the Binding Term Sheet, the principal agreement, is not duly stamped. However, the -4- NC: 2023:KHC:35547 CMP No. 167 of 2023 question is about the manner in which the agreement is brought about, and the petitioner relies upon the "Term Sheet" and exchange of e-mails. These are considered in the light of the provisions of Section 7(4)(b) of the Arbitration Act.
This Court is of the considered view that because the agreement has come about with the exchange of E-mails, the petition must be allowed leaving open all the questions to be considered in arbitral proceedings. After hearing the learned counsels for the parties on who could be appointed as the sole arbitrator, Sri H.R.Deshpande, a retired District Judge, is appointed as the sole arbitrator by the following:
ORDER
a) The petition is allowed, and Shri.H.R.Deshpande, a retired District Judge, is appointed as the sole arbitrator to enter reference of the dispute between the -5- NC: 2023:KHC:35547 CMP No. 167 of 2023 petitioner and respondent and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the Arbitration and Conciliation Centre (Domestic and International), Bengaluru.
b) The Registry is directed to communicate this order [through email] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and Shri.H.R.Deshpande, a retired District Judge, Address: "Sri Kamala", HIG No.76, 3rd Main, 8th 'E' Cross, KHB Colony, (Lakamanahalli 2nd Stage), Vidyagiri, Dharwad - 580 004 [e-mail:
[email protected]] as required under the Appointment of Arbitrators by the -6- NC: 2023:KHC:35547 CMP No. 167 of 2023 Chief Justice of Karnataka High Court Scheme, 1996.
SD/-
JUDGE SA ct:sr