- 1 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 397 OF 2022 BETWEEN: SMART VALUE HOMES (PEENYA PROJECT) PVT LTD VAISHNAVI THE RESIDENCY NO.133/1 GROUND FLOOR RESIDENCY ROAD BENGALURU 560 025 REP BY ITS AUTHORISED SIGNATORY MR PAUL LUKACHEN . …PETITIONER (BY SRI. ASHUTHOSH RANJAN, ADVOCATE FOR SRI. SANJAY NAIR.,ADVOCATE) AND: 1. MR INDRA VIKRAM SINGH S/O SRI BHAGWAN SINGH 2. MRS URMILA SINGH W/O SRI BHAGWAN SINGH BOTH R/AT A-84, SECTOR 31 NOIDA, UTTAR PRADESH 201301. …RESPONDENTS *(R1 AND R2 ARE SERVED) *Corrected vide Chamber order dated 25.06.2025. Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT A SOLE ARBITRATOR TO ADJUDICATE THE DISPUTE WHICH HAS ARISEN BETWEEN THE PETITIONER AND RESPONDENTS, IN TERMS OF CLAUSE 15 OF THE APPLICATION FORM / GENERAL CONDITIONS OF CONTRACT DATED 24/06/2014 (ANNEXURE-B). THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners rely upon the Booking Forms/ Applications filed by the respondents to purchase an apartment in the property developed by the petitioner and the agreement therein for resolution of all disputes by arbitration by a sole arbitrator. The agreement for resolution of dispute by arbitration reads as under: "15. JURISDICTION AND ARBITRATION: 15[a] All disputes or differences relating or arising out of or in connection with the Provisional Allotment read with the - 3 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 terms and conditions contained herein, shall be mutually discussed and settled between the parties. 15[b] However, disputes which cannot be settled amicably, shall be finally decided and resolved by arbitration in accordance with provisions of the Arbitration and Conciliation Act 1996 and any subsequent amendments thereto. The matter requiring arbitration will be referred to a sole arbitrator to be appointed by SVHPP at Bengaluru only. The proceeding of the arbitration shall be conducted in English and shall be construed as domestic arbitration under the applicable laws." 2. It is seen from the records that the respondents have caused e-mail way back in March 2021 raising a claim for a sum of Rs.2,15,88,090/- alleging certain deficiencies by the petitioner in completing the construction; that the petitioner has caused reply dated 17.05.2021 with a further notice under Section 21 of the Arbitration and Conciliation - 4 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 Act, 1996 [for short, 'the Act'] calling for the respondents' consent to the appointment of a former retired District Judge as the sole Arbitrator. The respondents have caused reply to the latter Notice under Section 21 of the Act disputing the Arbitration Agreement contending that the agreement as contained in the Booking Form/Application is superseded by the subsequent Agreement dated 16.07.2014. The respondents, though served, have remained absent. 3. Sri Ashutosh Ranjan, the learned counsel for the petitioner, is categorical in asserting that a draft of a Sale Agreement was exchanged but never signed and therefore the binding agreement would be the agreement as contained in the Booking Form/Application. The learned counsel is also categorical that the respondents have not taken possession of the subject apartment and that if the petitioner's stand on cancellation the agreement - 5 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 because of the respondents’ default is vindicated, the petitioner will be entitled not only to transfer the property free of encumbrances but also to forfeit the amount received without prejudice to recover damages. 4. On a careful consideration of all circumstances, this Court is satisfied that the existence of an arbitral dispute and an agreement for arbitration are established and therefore, a Sole Arbitrator must be appointed to enter reference of the dispute leaving open all questions, without exception, to be decided in the arbitral proceedings. Hence, the following: ORDER [a] The petition is allowed, and Sri. Prakash Kumar, a retired District Judge, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and the respondents and conduct - 6 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 the proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the Centre. It would be needless to observe that, subject to just exceptions, all questions are left open to be considered in the arbitral proceedings. [b] The Registry is directed to communicate this order [by E-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and also to Sri. Prakash Kumar, a retired District Judge, Address: No.207, “Mahaveer Ridge Apartments”, Begur-Koppa Road, Yelenahalli, Off-Bannerghatta Road, Bengaluru – 560 114 [E-mail judgeprakashkumar@gmail.com] as required under the Appointment of - 7 - HC-KAR NC: 2025:KHC:18948 CMP No. 397 of 2022 Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996. Sd/- (B M SHYAM PRASAD) JUDGE AN/-