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2025 DAILYLAW 22435 (KAR)

SMT. B.S. SUSHEELA RAMAMURTHY v. M/S MAANGALYA VENTURES PVT LTD

CMP/177/2023 · 2025-01-17

Sachin Shankar Magadum

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Judgment text

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- 1 - NC: 2025:KHC:1996 CMP No. 177 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO. 177 OF 2023 BETWEEN: SMT. B.S. SUSHEELA RAMAMURTHY, W/O B. RAMAMURTHY, AGED ABOUT 64 YEARS, RESIDING AT NO. 433/D, RED TREE GRAND, 2ND FLOOR, 7TH B MAIN ROAD, 9TH CROSS ROAD, NARAYANANAGAR III BLOCK, DODDAKALLASANDRA POST, BENGALURU - 560 062, REPRESENTED BY HER POWER OF ATTORNEY HOLDER MR. PRABHAKAR S. …PETITIONER (BY MR. JASLEEN KAUR, ADVOCATE FOR SRI. SANJAY KRISHNA, ADVOCATE) AND: 1. M/S. MAANGALYA VENTURES PVT. LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT APARTMENT NO.F-1, REDTREE CLASSIC NO.433/C, 7TH B MAIN, 9TH CROSS, NARAYANANAGAR, III BLOCK, DODDAKALLASANDRA POST, OFF KANAKAPURA ROAD, Digitally signed by KAVYA R Location: High Court of Karnataka - 2 - NC: 2025:KHC:1996 CMP No. 177 of 2023 BENGALURU - 560062, REPRESENTED BY ITS DIRECTORS i. SRI. SANJAY SURYANARAYANA AND ii. SMT. SUMA SRINIVAS. 2. SRI. SANJAY SURYANARAYANA, S/O SRI. SURYANARAYANA, AGED ABOUT 50 YEARS, RESIDING AT APARTMENT NO.F-1 7TH B MAIN, 9TH CROSS, NARAYANANAGAR, III BLOCK, DODDAKALLASANDRA POST, OFF KANAKAPURA ROAD, BENGALURU - 560 062. 3. SRI. AZGHAR AHMED, S/O SRI. A. HAJEE BASHA, AGED ABOUT 46 YEARS, RESIDING AT NO.254, ZAIBA S. MANSION, 7TH MAIN, 4TH CROSS, J P NAGAR, 4TH PHASE, BENGALURU - 560 078. …RESPONDENTS (BY MS. ANISHA SHERVEGAR, ADVOCATE FOR MS. C. APARNA RAMESH, ADVOCATE FOR R3; MS. S. ASFIYA KAUNIAN, ADVOCATE FOR R2; VIDE ORDER DATED 19.12.2024, SERVICE OF NOTICE TO R1 IS HELD SUFFICIENT) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11 (5) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT A SOLE ARBITRATOR AS PER CLAUSE 15 OF THE JOINT DEVELOPMENT AGREEMENT DATED 04.07.2019 (ANNEXURE-A) AND PASS SUCH OTHER ORDER/S AS THIS HONBLE COURT DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE ENDS OF JUSTICE AND EQUITY. - 3 - NC: 2025:KHC:1996 CMP No. 177 of 2023 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 Section 11(5) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator to resolve the dispute and differences between the parties herein in terms of Clause 15 of the Joint Development Agreement (for short, 'JDA') dated 04.07.2019 as per Annexure-A. 2. The petitioner approaches this Court based on a registered Joint Development Agreement (JDA) dated 04.07.2019. The petitioner asserts that the respondents have failed to deliver the petitioner’s entitled share of the proportionate super built-up area in the apartment buildings to be constructed on the scheduled property, despite the lapse of the agreed term of 33 months, as outlined in the JDA. Additionally, the respondents have not consented to the appointment of an arbitrator, as required under the agreement. In response to this, the petitioner - 4 - NC: 2025:KHC:1996 CMP No. 177 of 2023 issued a legal notice on 02.02.2023, invoking the arbitration clause under Clause 15 of the JDA, seeking the appointment of a sole arbitrator to resolve the dispute. 3. Following the issuance of the legal notice, the respondents appeared through their counsels. However, Respondent No. 1, a company, has been placed ex parte, and there is a lack of context regarding its participation in the proceedings. 4. Upon reviewing the annexures submitted alongside the memorandum of the Civil Miscellaneous Petition, this Court is satisfied that the petitioner has fulfilled the necessary requirements under Section 11(5) of the Arbitration and Conciliation Act. 5. In the light of the aforesaid clause of arbitration and the contentions advanced by the petitioner, this court passes the following: - 5 - NC: 2025:KHC:1996 CMP No. 177 of 2023 ORDER (a) The petition is allowed appointing Justice Shri. Subhash B. Adi, former judge, High Court of Karnataka as the sole arbitrator to enter reference of the disputes between the petitioner and the respondents and conduct proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the said Arbitration Centre. (b) All contentions inter se parties are left open for adjudication in the arbitration proceedings. (c) The office is directed to communicate this order to the Arbitration and Conciliation Centre and to Justice Shri. Subhash B. Adi, former judge, High Court of Karnataka, as required under the - 6 - NC: 2025:KHC:1996 CMP No. 177 of 2023 Arbitration and Conciliation Centre Rules, 2012. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK CT: BHK