- 1 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 203 OF 2025 BETWEEN: MILLENIUM EDUCATION MANAGEMENT PRIVATE LIMITED GROUND FLOOR, TOWER A, MAPLE CORPORATE PARK, SECTOR 125, NOIDA 2013 AUTHORISED REPRESENTATIVE - MS. RANI ABROL …PETITIONER (BY SRI. PRIYANKA S BHAT, ADVOCATE) AND: THE EDUCATION TRUST 802, 1 FLOOR, 7TH CROSS, 4TH BLOCK, BEL LAYOUT, VIDYARANYAPURA, BANGALORE - 560 097 THROUGH ITS MANAGING TRUSTEE/CHAIRMAN BHARAT SINGH MR. …RESPONDENT (RESPONDENT SERVED AS PER POSTAL TRACK) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF ARBITRATION AND CONCILIATION ACT 1996., PRAYING TO ISSUE ANY ORDER OR DIRECTION, DIRECTING TO APPOINT A SOLE ARBITRATOR PURSUANT TO CLAUSE NO.20 OF AGREEMENT DATED 29.03.2019 PRODUCED AT ANNEXURE - A, FOR THE ADJUDICATION OF THE DISPUTE. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 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 (hereinafter referred to as Act, 1996 for short) for the appointment of an Arbitrator to resolve the dispute between the petitioner and the respondent in terms of Clause 19 of the collaboration agreement dated 29.03.2019. 2. Brief facts leading rise to the filing of this petition are as follows: A collaboration agreement came to be executed between the petitioner and respondent on 29.03.2019 for the construction, operations management and running of a School in Kogilu main road, Yalahanka, Bengaluru. The agreement was for a period of 30 years commencing from 29.03.2019 to 31.03.2049 and as per the said agreement the petitioner granted a license to the respondent for personal, none exclusive and non-assignable right to use - 3 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 the brand name “Millannium World School” and sub- license to use curriculum under the name “Millannium Learning System” for the limited purpose of setting up, operation and management of the school established by the respondent. 3. The petitioner issued various reminders to the respondent, to clear the outstanding dues, but the respondent failed to make payment and to cure the defaults and breaches as per the terms of the agreement. The petitioner issued a notice on 08.04.2024 informing the respondent that due to the continued breaches of the respondent, the petitioner was left with no option but to initiate termination proceedings and requested to rectify the breaches. The petitioner by exercising of Clause 13.2(a) of the Collaboration Agreement, issued a notice dated 13.05.2024 for termination of the collaboration agreement and demanded to pay the outstanding dues of Rs.47,52,725/-. The respondent replied to the notice of the termination dated 20.05.2024, denying the payment of - 4 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 outstanding dues payable by the respondent to the petitioner. 4. The petitioner invoked Arbitration Clause, i.e., clause 19 of the collaborate in Agreement dated 29.03.2019 by issuing a notice dated 22.10.2024. The respondent failed to respond to the notice dated 22.10.2024. Hence, this petition. 5. Notice was issued to the respondent. Despite service of notice, there is no representation on behalf of the respondent. 6. This Court vide order dated 09.06.2025 has passed an order which reads as under: “It is seen from the records that the respondent is served on 07.05.2025 and that the petition is listed for the first time after such service. To extend another opportunity to the respondent to make appropriate arrangement for due representation but observing that if there is no representation even on the next date of hearing, the petition could be taken up for final disposal.” - 5 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 7. Heard the learned counsel for the petitioner. 8. Learned counsel for the petitioner submits that the petitioner and respondent have entered into a collaboration agreement on 29.03.2019 and the respondent committed a breach of agreement and also did not pay the outstanding dues. The petitioner issued a demand notice. The respondent replied to the said notice on untenable grounds. Hence, petitioner invoked the Arbitration Clause by issuing a notice under Section 21 of the Act, 1996. However the respondent did not reply. She submits that the dispute has arose between the parties and there is an Arbitration Clause in the Collaboration Agreement dated 29.03.2019. Hence, prays to allow the petition. 9. Perused the records and considered the submissions of the learned counsel for the petitioner. 10. The point that arises for consideration is: - 6 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 “Whether the petitioner has made out a ground to refer the dispute to the Arbitrator in terms of Clause 19 of the Collaboration Agreement dated 29.03.2019 as per the provisions of the Arbitration and Conciliation Act, 1996?” 11. There is no dispute regarding the execution of the Collaboration Agreement between the petitioner and respondent. The petitioner demanded for payment of the outstanding dues by issuing a legal notice. The respondent denied the claim made by the petitioner. The petitioner invoked the Arbitration Clause by issuing a notice under Section 21 of the Act, 1996. 12. I have perused the Collaboration Agreement. The said agreement provides for an alternative dispute resolution: “19. ALTERNATIVE DISPUTE RESOLUTION All disputes arising in connection with or arising out this Agreement will be referred to arbitration under the provisions of Arbitration and Conciliation Act, 1996. For this purpose, both the Parties hereby have to consent for the appointment of a sole arbitrator for the adjudication of the dispute. The place and seat of arbitration shall be decided by both parties and the language shall be English. The arbitration award shall be final and binding upon the Parties.” - 7 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 13. A dispute arose between the petitioner and respondent regarding payment of the outstanding dues and revocation of Collaboration Agreement. Admittedly, there exists an Arbitration Clause in the collaboration Agreement dated 29.03.2019. Therefore, the dispute between the petitioner and the respondent has to be resolved through the Arbitration. 14. In view of the above discussion, petitioner has made out a ground to refer the matter to the Arbitration. Hence, I answer the point for consideration in the Affirmative. 15. Accordingly, I proceed to pass the following: ORDER (i) The Civil Miscellaneous Petition is allowed. (ii) Hon’ble Justice Sri. N. Kumar, Former Judge, the High Court of Karnataka is nominated as a Sole Arbitrator to resolve - 8 - HC-KAR NC: 2025:KHC:20813 CMP No. 203 of 2025 the dispute in terms of Arbitration and Conciliation Act, 1996, and Rules. (iii) The Office is directed to forward the copy of this order to the learned Arbitrator, and the Arbitration and Conciliation Center, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE BVK; List No.: 1 Sl No.: 21