- 1 - NC: 2025:KHC:13709 CMP No. 64 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 64 OF 2025 BETWEEN: MRS. B.R. ASHA KUMARI W/O MR. SEELAM NARENDRA BABU AGE. 52 YEARS OCCUPATION. SERVICE REPRESENTED BY HER FATHER AND GPA HOLDER, MR. B.N. RANGASWAMY ADDRESS. R/AT NO. 250 1ST MAIN, M.E.S ROAD BENGALURU - 560 054. …PETITIONER (BY SRI. HARSHA P. BANAD, ADVOCATE) AND: M/S MM BUILDERS PARTNERSHIP FIRM OFFICE AT NO. 74, 1ST FLOOR, 3RD MAIN ROAD, NEW TIPPASANDRA POST BENGALURU - 560 075. REPRESENTED BY ITS MANAGING PARTNER MR. K. MURUGAN S/O MR. KANNAN …RESPONDENT (BY SRI. KIRAN KUMA .B.M, ADVOCATE) THIS CMP IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO EXERCISE THE POWER UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 FOR APPOINTMENT OF A SOLE ARBITRATOR AS PER CLAUSE 16 OF THE JOINT DEVELOPMENT AGREEMENT DATED 27.11.2019 WHICH IS AT ANNEXURE-B OF THE PETITION IN ORDER TO ADJUDICATE THE DISPUTE BETWEEN THE PETITIONER AND RESPONDENT IN THE INTEREST OF EQUITY AND JUSTICE. Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13709 CMP No. 64 of 2025 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(6) of the Arbitration and Conciliation Act, 1996, praying to exercise power under Section 11(6) of the Arbitration And Conciliation Act, 1996 for an appointment of the Sole Arbitrator in terms of Clause 16 of the Joint Development Agreement dated 27.11.2019 which is at Annexure-B of the petition, to adjudicate the dispute between the petitioner and the respondent. 2. The petitioner, being the owner of site no. 43, entered into an Joint Development Agreement dated 27.11.2019, and executed a GPA dated 27.11.2019 in favour of the respondent for developing the site no.43 into a residential building, and handed over all the original title deeds to the respondent. The respondent had agreed to complete the construction within 15 months from the date of plan approval with an extended period of 3 months. - 3 - NC: 2025:KHC:13709 CMP No. 64 of 2025 Subsequently, an un-registered supplementary agreement dated 27.11.2019 was entered into between the petitioner and the respondent. The respondent also promised that he was eligible to construct a store room and a penthouse on the fourth floor, which was, as per the plan. Another supplementary agreement was entered into by which the store room was allotted to the petitioner and the penthouse was allotted to the respondent. A dispute has arisen between the petitioner and respondent because the respondent has not completed the construction within the stipulated period as per the terms and conditions of Joint Development Agreement. Thus, the respondent has breached the terms and conditions of the Joint Development Agreement. The respondent has not yet completed the entire work. 2.1. The petitioner has invoked arbitration clause in accordance with the arbitration agreement by issuing a notice to the respondent dated 11.11.2024. It is stated that the respondent is illegally alienating his share of the property of flat no.A1 on the ground floor, and flat no.D1 - 4 - NC: 2025:KHC:13709 CMP No. 64 of 2025 on the third floor vide registered sale deeds dated 22.08.2023 & 05.02.2024 respectively. 2.2. The petitioner has filed an application under Section 9 of the Arbitration and Conciliation Act 1996, seeking an interim relief in Com.A.A.395/2024 on the file of LXXXV Addl. City Civil & Sessions Judge at Bengaluru (CCH-86), Commercial Court. The Commercial Court passed an order dated 18.01.2025 and partly allowed the application along with costs. The respondent has neither consented nor proposed the name of an arbitrator of his choice to resolve the dispute between the parties to the petition. Hence, this petition. 3. Heard the arguments of the learned counsel for the petitioner, and the respondent. 4. The respondent submitted no objection to allow the petition. 5. Perused the records and considered the submissions of the learned counsel for the parties. 6. The point that arises for consideration is, - 5 - NC: 2025:KHC:13709 CMP No. 64 of 2025 ‘Whether the petitioner has made out grounds to refer the dispute to the Arbitrator for resolving the dispute between the petitioner and the respondent in terms of Clause 16 of the Joint Development Agreement dated 27.11.2019 ?’ 7. Admittedly, the petitioner, entered into a Joint Development Agreement dated 27.11.2019, and executed a GPA dated 27.11.2019. There was a condition in the Joint Development Agreement that, the construction has to be completed within 15 months from the date of plan approval with an extended period of 3 months. The respondent did not complete the construction work within the stipulated period as mentioned in the Joint Development Agreement. As the respondent has breached the terms and conditions of the Joint Development Agreement, the petitioner invoked the arbitration clause by issuing a notice to the respondent dated 11.11.2024. 7.1. Before issuing the arbitration notice, the respondent had sold flat no.A1 on the ground floor, and flat no.D1 on the third floor vide registered sale deeds - 6 - NC: 2025:KHC:13709 CMP No. 64 of 2025 dated 22.08.2023 & 05.02.2024, respectively. In the event of any dispute between the parties. The dispute shall be referred to arbitration. There is an arbitration clause in the Joint Development Agreement. Clause 16 of the Joint Development Agreement reads as follows : “16.In the event of there being any dispute with regards to this agreement or under this agreement or interpretation of any of the terms and conditions of this agreement the same may be referred to arbitration of a sole Arbitrator to be appointed by the parties and such Arbitration shall be in English and as per the provisions of Arbitration and conciliation Act, 1996. The seat of such Arbitration shall be Bangalore." 7.2 From a perusal of Clause 16 of the Joint Development Agreement, it is clear that the dispute regarding the agreement or interpretation of any of the terms, and conditions of the agreement, may be referred to the sole Arbitrator. 8. Admittedly, the dispute has arose between the petitioner and the respondent, and the said dispute has to be resolved through an Arbitration, as the respondent has submitted no objection to allow the petition. - 7 - NC: 2025:KHC:13709 CMP No. 64 of 2025 9. In view of the above discussion, I answer the point for consideration in the affirmative, holding that, the petitioner has made out grounds to refer the dispute to the Solo Arbitrator. 10. Accordingly I proceed to pass the following order : ORDER i) The Civil Miscellaneous Petition is allowed. ii) Hon’ble Justice Smt. Premavati Managoli, learned retired District Judge, is nominated as an Arbitrator to resolve the dispute between the parties in terms of Clause 16 of the Joint Development Agreement dated 27.11.2019 as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules. The office is directed to communicate this Order to the learned Arbitrator, and the Arbitration and Conciliation Centre, Bengaluru. All the contentions of the parties are kept open. Sd/- (ASHOK S.KINAGI) JUDGE rs