- 1 - NC: 2025:KHC:10967 CMP No. 169 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 169 OF 2024 BETWEEN: M/S NCL VEKA PVT. LTD. (ERSTWHILE NCL WINTECH INDIA LIMITED) HAVING ITS REGISTERED OFFICE AT 1ST FLOOR DOOR NO 1-18/HIE NR- 2 HOLIDAY INN EXPRESS AND SUITS (FAIRFIELD BY MARRIOTT), GACHIBOWLI, NANAKRAMGUDA, HYDERABAD – 500032, TELANGANA, REPRESENTED BY ITS GENERAL MANAGER,MR M.V.S. NARSIMHA RAJU …PETITIONER (BY SRI. POORNA CHANDRA B PATTAR, ADVOCATE) AND: M/S MFAR CONSTRUCTIONS PRIVATE LIMITED NO 8 AND 8A, AVS COMPOUND, 80 FEET ROAD, KORAMANGALA 4TH BLOCK, BENGALURU - 560034 REPRESENTED BY ITS CEO MR FAYAZ KAMALUDDDIN …RESPONDENT (BY SRI. PATTABI C. RAMAN, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO APPOINT MR. VISHWANATH V. ANGADI, RETD. PRINCIPAL CITY CIVIL AND SESSIONS JUDGE AS THE SOLE ARBITRATOR ON BEHALF OF THE PETITIONER AND THE RESPONDENT AND ALLOW THE SAID ARBITRATOR TO ENTER UPON THE REFERENCE AND ADJUDICATE UPON ALL THE PENDING DISPUTES AND DIFFERENCES BETWEEN THE PARTIES ARISING OUT OF THE ARTICLE OF AGREEMENT DATED 22.02.2017 AT ANNEXURE E. AS PER CLAUSE 44. Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:10967 CMP No. 169 of 2024 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 appoint an Arbitrator to resolve the disputes between the petitioner and the respondent, in terms of Clause 44 of the Articles of Agreement dated 22.02.2017, vide Annexure-E. 2. The brief facts, leading rise to the filing of this petition are as follows: The petitioner and respondent had executed an Article of Agreement dated 22.02.2017 to provide any UPVC casement windows at various projects around Bangalore. In furtherance to the said Works, the Petitioner has raised invoices total amounting to Rs.53,00,099/-(Rupees Fifty Three lakh and Ninety Nine Only). The same remains unpaid despite repeated reminders to the respondent. - 3 - NC: 2025:KHC:10967 CMP No. 169 of 2024 2.1. The petitioner sought confirmation of the respondent's outstanding amounts for Audit; however, the respondent wrongly endorsed a lower amount of Rs.19,78,670/- (Rupees Nineteen Lakhs Seventy Eight Thousand Six Hundred and Seventy Only). Thus, a dispute arose between the petitioner and the respondent. 2.2. The petitioner, therefore, invoked the Arbitration Clause in terms of Article of the Agreement and issued a notice dated 29.05.2023 to the respondent proposing Sri.Vishwanath V.Angadi, retired District Judge, to act as the sole Arbitrator to adjudicate the dispute. 2.3. The notice was received by the respondent on 31.05.2023. The respondent replied to the arbitration notice on 23.06.2023 expressing their intent to resolve the dispute amicably and sought a statement of accounts from the petitioner. The petitioner issued a response dated 06.08.2023 along with the - 4 - NC: 2025:KHC:10967 CMP No. 169 of 2024 statement of accounts. However, there was no response from the respondent. Hence, the petitioner filed this petition. 3. The respondent has not filed a statement of objections. 4. Heard the arguments of the learned counsels for the petitioner and the respondent. 5. Learned counsel for the petitioner submits that the petitioner and the respondent executed an Article of Agreement dated 22.02.2017. The petitioner has raised invoices total amounting to Rs.53,00,099/- (Rupees Fifty Three lakh and Ninety Nine Only), and requested the respondent to pay the outstanding amount. The same remained unpaid despite repeated reminders to the respondent. The petitioner invoked the arbitration clause by issuing a notice and proposing the name of Sri.Vishwanath V.Angadi, retired District Judge, to act as the sole arbitrator to adjudicate the dispute. The respondent replied to the legal notice stating that the respondent did not - 5 - NC: 2025:KHC:10967 CMP No. 169 of 2024 consent to the appointment of an Arbitrator as the differences needs to be resolved through reconciliation, pursuant to the letter dated 23.6.2023. The petitioner sent Communication dated 6.8.2023 along with the statement of accounts. However, there was no response from the respondent. Hence, he prays to allow the petition. 6. Learned counsel for the respondent submits that the matter can be resolved by reconciliation between the parties. Accordingly, prays to dispose of the petition. 7. The point that arises for consideration is : “Whether the petitioner has made out the grounds to refer the dispute to the Arbitrator in terms of Clause 44 of the Articles of Agreement dated 22.02.2017. as per the provisions of Arbitration and Conciliation Act, 1996.? “ 8. There is no dispute that the petitioner and respondent had executed an Article of Agreement - 6 - NC: 2025:KHC:10967 CMP No. 169 of 2024 dated 22.02.2017 to provide and fix UPVC casement windows at various projects around Bangalore. The petitioner carried out the work and raised invoices total amounting to Rs.53,00,099/- (Rupees Fifty Three lakh and Ninety Nine Only). The same remained unpaid, despite repeated reminders to the respondent. The petitioner, therefore, invoked the Arbitration Clause in terms of the Article of Agreement and issued a notice dated 29.05.2023 vide Annexure F to the respondent proposing Sri.Vishwanath V.Angadi, retired District Judge, to act as the sole arbitrator to adjudicate the dispute. 9. The respondent replied to the legal notice stating that, the respondent did not consent to the arbitration, and for the appointment of the Arbitrator, as the differences needs to be finally resolved through reconciliation of the statement of accounts, for which the statement is being sought from the petitioner. It is stated that, this is a mutually agreeable resolution - 7 - NC: 2025:KHC:10967 CMP No. 169 of 2024 for satisfying both parties. Pursuant to the reply dated 23.6.2023 vide Annexure-H given by the respondent, the petitioner responded to the reply notice vide letter dated 6.8.2023 vide Annexure-J. The petitioner has enclosed the statement of accounts with the letter dated 06.08.2023. After receiving the notice, there is no response from the respondent. 10. Article 44 of the Articles of Agreement reads as under : “44. Dispute and Arbitration;- if any dispute arises between the two parties relating to this Agreement or any other item arising there- from, the same shall be settled in accordance with the provisions of Arbitration and Reconciliation Act, 1996. It is only the Courts of Bangalore that will have the jurisdiction to entertain any matter that may arise in respect of or under the terms of this Agreement.” Article 44 provides that in case of any dispute between the parties in relation to the articles of agreement dated 22.02.2017, such disputes shall be settled in accordance with the provisions of the - 8 - NC: 2025:KHC:10967 CMP No. 169 of 2024 Arbitration and Conciliation Act, 1996. As the dispute arose between the petitioner, and the respondent is with regard to the payment of outstanding amount. The dispute is to be resolved through Arbitration. 11. In view of the above discussion, I am of the view that, the petitioner has made out grounds to refer the dispute to the Arbitrator, and accordingly, I answer the point for consideration in the affirmative. 12. Accordingly I proceed to pass the following order : ORDER i) The Civil Miscellaneous Petition is allowed. ii) Sri. Vishwanath. V Angadi, Retired District Judge, is nominated as the sole Arbitrator to adjudicate all the pending disputes and differences between the parties to the petition arising out of the Articles of Agreement dated 22.02.2017. - 9 - NC: 2025:KHC:10967 CMP No. 169 of 2024 The Office is directed to communicate this Order to the learned Arbitrator, and the Arbitration and Conciliation Centre, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE rs