- 1 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 60 OF 2025 BETWEEN: GLATT SYSTEMS PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT GATE NO. 321/2, 322/1, 324/1, 324/2, PUNE-AHMEDNAGAR ROAD, VILLAGE KONDHAPURI, TALUKA SHIRUR, PUNE - 412 209, MAHARASHTRA. THROUGH ITS AUTHORISED REPRESENTATIVE, MR. SHONIL BAKARE, AGE 40, OCCUPATION SERVICE. …PETITIONER (BY SRI. D.V. SHASHANK, ADVOCATE) AND: KARNATAKA ANTIBIOTICS AND PHARMACEUTICALS LIMITED, (A GOVERNMENT OF INDIA ENTERPRISE), INCORPORATED AND REGISTERED UNDER THE COMPANIES ACT, 1956, HAVING CI. NO. U24231KA1981GOI004145 AND HAVING ITS REGISTERED ADDRESS AT ARKA THE BUSINESS CENTER PLOT NO. 37, SITE NO. 34/4, PEENYA INDL AREA, 2ND PHASE, BENGALURU - 560 058, KARNATAKA, THROUGH ITS MANAGING DIRECTOR. …RESPONDENT (BY SRI. T RAJARAM, ADVOCATE) Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO APPOINT A FORMER JUDGE OF HIGH COURT OF KARNATAKA AS SOLE ARBITRATOR IN ORDER TO CONSTITUTE A TRIBUNAL TO ARBITRATE THE DISPUTE BETWEEN THAT APPLICANT AND RESPONDENT AS PER CLAUSE 30.3 OF VIDE ANNEXURE B DATED 14.06.2023 IN DOC.NO.KAPL/BDP/CG/624. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI ORAL ORDER This Civil Miscellaneous Petition is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 (‘the Act, 1996’ for brevity) for the appointment of an Arbitrator in terms of clause 30.2 of the Tender Document for Fermenter with Agitator Assembly (250 KL) dated 14.06.2023 vide Annexure-B to resolve the disputes between the petitioner and the respondent as per the provisions of the Arbitration and Conciliation Act, 1996 and Rules. - 3 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 2. Brief facts, leading rise to the filing of this petition are as follows: The respondent along with M/s. Doshi Consultant Pvt. Ltd., floated a Tender Document for supply, installation, commissioning and validation of Fermenter with Agitator Assembly (250 KL). The petitioner came across tender document and accordingly sent its enquiry letter on 19.06.2023. On the basis of the enquiry letter, the Pre-bid Minutes of the meeting and the commercial proposal given by the petitioner. The parties entered into Techno-Commercial Discussion. The respondent vide letter of intent dated 11.08.2023 informed the applicant that the respondent was pleased to accept the final offer given by the applicant against the tender document. On the basis of the document, the respondent issued purchase order dated 09.10.2023 via email. The petitioner furnished an advance bank guarantee of Rs.7,86,24,000/- dated 10.10.2023 in compliance with clause compliance with Clause 47 of the tender document. The copy of the - 4 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 advance bank guarantee was shared with the respondent on 12.10.2023. As per Clause 5 of the tender document, a performance bank guarantee dated 02.12.2023 Rs.5,24,16,000/- was executed by the applicant in favour of the respondent. The respondent made the payment of Rs.1,95,85,000/- out of total of Rs.7,86,00,000/- and substantial amount of Rs.5,90,00,000/- was outstanding and payable by the respondent. The petitioner issued several communications to the respondent for payment of outstanding dues. The respondent did not pay the outstanding dues. The petitioner invoked an arbitration clause by issuing a notice on 21.12.2024 vide Annexure-H. The respondent did not reply to the arbitration notice. Hence, this petition. 3. The respondent did not filed the statement of objections. 4. Heard the arguments of learned counsel for the petitioner and also learned counsel for the respondent. - 5 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 5. Learned counsel for the petitioner submits that the respondent is liable to pay the outstanding dues of Rs.14,62,50,146/-. He submits that despite several requests made by the petitioner, the respondent has not paid the outstanding dues. He submits that there is an arbitration clause in the document. Hence, the petitioner has invoked an arbitration clause by issuing an arbitration notice vide Annexure-H1. Hence, he prays to allow the petition. 6. Per contra, learned counsel for the respondent submits no objections to allow the petition. 7. Perused the records, and considered the submissions of the learned counsel for the petitioner. 8. The point, that arises for consideration is as follows: “Whether the petitioner made out a ground to resolve the dispute to the Arbitrator in terms of clause 30.2 of the Tender Document for Fermenter with Agitator Assembly (250 KL) dated 14.06.2023 vide Annexure-B, as per the - 6 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 provisions of the Arbitration and Conciliation Act, 1996 and the Rules?” 9. There is no dispute with regard to the execution of the Tender Document for Fermenter with Agitator Assembly (250 KL) dated 14.06.2023. Pursuant to the tender document, the petitioner has performed its obligation. The petitioner raised a bill against the respondent. The respondent has made a part payment. The respondent did not pay the remaining amount of Rs.14,62,50,146/-. The petitioner issued several notices and reminders to the respondent to clear the outstanding dues. Despite communication, the respondent did not clear the outstanding dues. The petitioner invoked an arbitration clause which read as under: Clause 30.2: If the parties fail to resolve their dispute or difference by such mutual consultation within twenty-one days of its occurrence, then, unless otherwise provided in the SCC, either the Purchaser/Consignee of the supplier may give notice to the other party of its intention to commence arbitration, as hereinafter provided the applicable arbitration procedure will be as per the Arbitration and Conciliation Act, 1996 of India. In the case of a dispute or difference arising between the - 7 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 Purchaser/Consignee and a domestic Supplier relating to any matter arising out of or connected with the contract, such dispute or difference shall be referred to the sole arbitration of the arbitrator to be appointed by the Managing Director of the employer. The award of the arbitrator shall be final and binding on the parties to the contract. 10. It provides that if the parties fail to resolve their dispute or difference by such mutual consultation, the matter shall be referred to arbitration. There is an arbitration clause in the tender document and the petitioner issued an arbitration notice dated 21.12.2024 invoking an arbitration clause suggesting the name of a learned arbitrator. The respondent did not reply to the arbitration notice. 11. Admittedly, the dispute has arose between the petitioner and the respondent and the dispute has to be resolved through an arbitrator and there exists an arbitration clause. In view of the arbitration clause, the petitioner has made out a ground to refer the dispute to arbitration. - 8 - HC-KAR NC: 2025:KHC:21838 CMP No. 60 of 2025 In view of the above discussion, I answer the point for consideration in the affirmative. 12. Accordingly, I proceed to pass the following: ORDER i. The Civil Miscellaneous Petition is allowed. ii. Hon’ble Justice Sri V.Jagannathan, Former Judge, High Court of Karnataka, is nominated as the sole Arbitrator to resolve the dispute between the parties to the petition in terms of Clause 30.2 of the tender document dated 14.06.2023 as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules. iii. The office is directed to communicate this order to the learned sole Arbitrator and the Arbitration and Conciliation Centre, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE SSB CT: BHK