- 1 - NC: 2025:KHC:3270 CMP No. 199 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO. 199 OF 2024 BETWEEN: MR. PHUTANE NANJUDARAO CHANDRA SHEKAR S/O LATE P V NANJUNDA RAO AGED ABOUT 52 YEARS, R/AT NO.1, KRISHNA ROAD, BANGALORE - 560 004. …PETITIONER (BY SRI. ZAMEER PASHA, ADVOCATE) AND: 1. TRANSACT FOODS LLP INDIAN SWEET HOUSE, NO. 162, ANIL COMPLEX, 1ST MAIN ROAD, PETE CHENNAPPA INDUSTRIAL AREA, MAGADI MAIN ROAD, KAMAKASHIPALYA, BANGALORE - 560 079. 2. VENKATACHALA MURTHY VISHWANATH # 99, FLAT NO. 004, LITTLE EARTH, 5TH CROSS NEAR TO VAISHALI HOTEL, MALLESHWARAM, BANGALORE - 560 003. Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:3270 CMP No. 199 of 2024 3. SHWETHA RAJSHEKAR W/O VENKATACHALA MURTHY, #99, FLAT NO. 004, LITTLE EARTH, 5TH CROSS NEAR TO VAISHALI HOTEL, MALLESHWARAM, BANGALORE - 560 003. 4. LALITHA MEHTA DIRECTOR-TRANSACT FOODS LLP, INDIAN SWEET HOUSE, NO.162, ANIL COMPLEX, 1ST MAIN ROAD PETE CHENNAPPA INDUSTRIAL AREA, MAGADI MAIN ROAD, KAMAKASHIPALYA, BANGALORE - 560079 …RESPONDENTS (BY SRI. MURALIDHAR H.M, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6)) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO ISSUE AN ORDER APPOINTING MR.HON'BLE JUSTICE ASHOK B HINCHINGERI AS SOLE ARBITRATOR IN TERMS OF CLAUSE 23.8 OF THE LIMITED LIABILITY PARTNERSHIP AGREEMENT DATED.09.09.2020 VIDE ANNEXURE-A THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM - 3 - NC: 2025:KHC:3270 CMP No. 199 of 2024 ORAL ORDER This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of a sole arbitrator to resolve the dispute and difference between the parties herein in terms of Clause 23.8 of the Limited Liability Partnership Agreement dated 09.09.2020 as per Annexure-A. 2. Petitioner and Respondent Nos.2 to 4 formed a limited liability partnership firm 'Transact Foods LLP'/Respondent No.1. The business was involved in the manufacture and trade of sweets, savouries and other bakery products inside and outside India. Each partner contributed capital equally at 25% and the profit sharing was also determined at 25% to each partner. 3. Respondent No.2 was the authorized signatory for respondent No.1 which is forthcoming from the authorization letter evidenced at Annexure-C. 4. The petitioner has filed the captioned petition under Section 11(6) alleging respondent No.2 has misused - 4 - NC: 2025:KHC:3270 CMP No. 199 of 2024 his position and authorised signatory and has manipulated business records and misappropriated the funds. The petitioner alleges that respondent No.2 diverted Rs.2,07,60,000/- belonging to Transact Food LLP to his family owned entity Cobra Ventures. 5. The petitioner invoking arbitration clause issued legal notice on 12.04.2022 alleging that respondent has issued untenable reply, this petition is filed. 6. Respondent on receipt of notice has appeared through learned counsel, who acknowledges the existence of arbitration clause. However, counsel appearing for respondent has some reservations to arbitrator nominated in the legal notice. After thorough review of petition, annexures and supporting documents, this Court is satisfied that the petitioner has appropriately invoked this clause and has met all the procedural prerequisites as outlined under Section 11(6) of the Arbitration and Conciliation Act, 1996. - 5 - NC: 2025:KHC:3270 CMP No. 199 of 2024 7. In the light of the aforesaid clause of arbitration and the contentions advanced by the petitioner the following order is passed: ORDER (a) The petition is allowed appointing Sri.S.R.Somashekar, Former District and Sessions Judge, 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 - 6 - NC: 2025:KHC:3270 CMP No. 199 of 2024 Centre and to Sri. Sri.S.R.Somashekar Former District and Sessions Judge as required under the Arbitration and Conciliation Centre Rules, 2012. SD/- (SACHIN SHANKAR MAGADUM) JUDGE AG List No.: 3 Sl No.: 18