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2025 DAILYLAW 19689 (KAR)

M/S ASHED PROPERTIES AND INVESTMENTS PVT. LTD v. SRI. DIPAK JAIN

CMP/130/2023 · 2025-02-14

Sachin Shankar Magadum

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Judgment text

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- 1 - NC: 2025:KHC:6705 CMP No. 130 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO.130 OF 2023 BETWEEN: M/S ASHED PROPERTIES AND INVESTMENTS PVT. LTD 5B REGENCY HEIGHTS 3/2-1 CLEVELAND ROAD BENGALURU - 560005 BY ITS MANAGING DIRECTOR SRI.SAMEER A KHAN …PETITIONER (BY SRI.NAGABHUSHANA S, ADVOCATE) AND: 1. SRI.DIPAK JAIN S/O AROON SINGHJI BHANDIA AGED ABOUT 57 YEARS 2. MRS.SUMAN JAIN W/O DIPAK JAIN AGED ABOUT 53 YEARS BOTH R/AT NO.7A REGENCY HEIGHTS 3/2-1 CLEVELAND ROAD BENGALURU - 560005 3. REGENCY HEIGHTS ASSOCIATION (R) NO.3/2-1, CLEVELAND ROAD BENGALURU - 560005 BY ITS PRESIDENT …RESPONDENTS (BY SRI.VENKATESH MURTHY G R, ADVOCATE FOR R.1 AND R.2; NOTICE TO R.3 IS HELD SUFFICIENT V/O/D 31.01.2025) Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:6705 CMP No. 130 of 2023 THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(4) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING THAT THIS HONBLE COURT MAY KINDLY APPOINT A RETIRED DISTRICT JUDGE AS ARBITRATOR AS PER CLAUSE NO.58 CHAPTER-X OF AMENDED BYE-LAWS THE ASSOCIATION WIDE ANNEXURE-M IN THE INTEREST OF JUSTICE AND EQUITY AND PASS SUCH ORDER OR DIRECTION THAT THIS HON'BLE COURT DEEMS FIT TO PASS UNDER THE CIRCUMSTANCES OF THE CASE AND ETC. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This Civil Miscellaneous Petition is filed under Sections 11(5) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) seeking appointment of sole Arbitrator in terms of Clause No.58 Chapter-X of the Amended Bye-Laws of Regency Heights Association, which is evidenced at Annexure-M, to resolve the dispute between the petitioner and respondents. 2. The petitioner, a Company registered under the provisions of Companies Act, is claiming to be a owner of - 3 - NC: 2025:KHC:6705 CMP No. 130 of 2023 Flat bearing B-5 and two covered car parking spaces one behind another in the basement of apartment known as Regency Heights and situated at Ward No.78 (Pulikeshinagar), Cleveland Road, Frazer Town, Bengaluru. 3. The respondents are the owners of Flat No.A-7 of Regency Heights with two car parking spaces i.e., one in the basement and one in the open space at the ground level. 4. The petitioner is alleging that the respondents, though have purchased two parking spaces one in basement and one in open space, are however falsely laying a claim over both covered car parking spaces, which is allotted to the petitioner's vendor. Therefore, a notice is issued by the petitioner thereby invoking Arbitration Clause and the petitioner has nominated an Arbitrator to resolve the dispute in terms of the Arbitration Clause provided under the Bye-Laws of the Apartment Association. - 4 - NC: 2025:KHC:6705 CMP No. 130 of 2023 5. Learned counsel appearing for the respondent Nos.1 and 2 has tried to resist this petition primarily on two grounds. Firstly, he would point out that Amended Bye-Laws is not registered and therefore, Arbitration clause cannot be invoked. Secondly, he would point out that this is a stale case and clearly barred by limitation. Respondents' counsel referring to the materials on record would point out that the petitioner's company is tracing title through the sale deed obtained in 2020. Respondent Nos.1 and 2 claim that they have been using this disputed designated parking within the basement since 2003 and the petitioner's vendor never lay a claim over this disputed parking. One more relevant point is raised by respondents that these parking slots were, in fact, allotted by the petitioner's Company as a Developer. 6. On examining the rival contentions, this Court has gone through Annexures annexed to the Civil Miscellaneous Petition. The Amended Bye-Laws of Regency Heights Association clearly provides for - 5 - NC: 2025:KHC:6705 CMP No. 130 of 2023 Resolution of Disputes by way of arbitration, the petitioner has invoked the clause by issuing a notice under Section 21 of the Act. 7. Upon a thorough examination of the petition and the supporting annexures, this Court is satisfied that the petitioner has complied with the procedural requirements outlined under Section 11(4) of the Arbitration and Conciliation Act, 1996. The arbitration clause has been duly invoked through the issuance of a legal notice and the nomination of an Arbitrator in accordance with the terms of the agreement. Given the submissions of the learned counsel for the respondents and the petitioner’s adherence to the statutory prerequisites, this Court finds merit in proceeding with the appointment of an Arbitrator for the resolution of disputes. 8. The respondents’ argument that the Amended Bye-Laws cannot be considered due to a lack of registration is a matter that falls within the purview of the Arbitrator. Similarly, the issue of limitation, as raised - 6 - NC: 2025:KHC:6705 CMP No. 130 of 2023 before this Court, is also to be adjudicated by the Arbitrator. These contentions pertain to the merits of the dispute and are not within the limited scope of this Court’s jurisdiction under Section 11(4) of the Act. 9. For the foregoing reasons, this Court proceeds to pass the following; ORDER (i) The Civil Miscellaneous Petition is allowed, appointing Sri.Radhakrishna Holla K, retired District and Sessions Judge, as the sole Arbitrator to resolve the dispute between the petitioner and respondents in terms of the Clause No.58 Chapter-X of the Amended Bye-Laws of the Association dated 06.04.2021 (Annexure-M) to the petition. (ii) All contentions are kept open for adjudication in the arbitration proceedings. (iii) The Office is directed to communicate this order to the Arbitration and - 7 - NC: 2025:KHC:6705 CMP No. 130 of 2023 Conciliation Centre and Sri.Radhakrishna Holla K, retired District and Sessions Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 3 Sl No.: 4