- 1 - NC: 2025:KHC:983 CMP No. 342 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO.342 OF 2024 BETWEEN: INDIAN OIL CORPORATION LIMITED (MD) KARNATAKA STATE OFFICE INDIA OIL BHAVAN NO.29, P.KALINGA RAO ROAD (MISSION ROAD) BANGALORE - 560027 REPRESENTED BY ITS AUTHORISED SIGNATORY MR. T.RAM KUMAR …PETITIONER (BY SRI.DHANANJAY VIDYAPATI JOSHI, SENIOR ADVOCATE FOR SMT.KAVITHA DAMODARAN, ADVOCATE) AND: MR.RANGASWAMY E NO.131, WARD NO.35 K.HOSAKOPPALU H N PURA ROAD HASSAN - 573 201 …RESPONDENT (BY SRI.SRINIVASA N. C, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) AND 11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING THAT THIS HONBLE COURT MAY BE PLEASED, IN THE INTEREST OFJUSTICE AND EQUITY, TO CONSTITUTE AN Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:983 CMP No. 342 of 2024 ARBITRAL TRIBUNAL BY APPOINTMENT OF A SUITABLE PERSON AS THE SOLE ARBITRATOR FOR THE ADJUDICATION OF THE PETITIONER'S CLAIMS AGAINST THE RESPONDENT IN ACCORDANCE WITH CLAUSE 16 OF THE BULK PETROLEUM PRODUCTS ROAD TRANSPORT AGREEMENT DATED 10.08.2020 AT ANNEXURE-A 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) and (6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’) seeking to appoint suitable person as sole Arbitrator in terms of Arbitration clause No.16 contained in the Bulk Petroleum Products Road Transport Agreement executed in the Month of March, 2020 to resolve the dispute between the petitioner and respondents. 2. On issuance of notice to the respondent, the respondent has entered appearance through his counsel and filed statement of objection. - 3 - NC: 2025:KHC:983 CMP No. 342 of 2024 3. It is undisputed that the parties have entered into a Bulk Petroleum Products Road Transport Agreement. This agreement explicitly includes an Arbitration Clause, located at Clause 16 of the said agreement. 4. On 23.05.2024, the petitioner issued a legal notice asserting that, pursuant to two invoices (Nos.190450714 and 190445038), the respondent was entrusted with the transportation of 40 KL of Aviation Turbine Fuel (ATF) from the MS Raftaar Terminal to the Kannur Air Force Station. This consignment was to be transported using two tank trucks, bearing registration numbers KA 01 AL 2016 and KA 30 8332, each carrying 20 KL of ATF. 5. The petitioner invoked the Arbitration Clause on the grounds that the tank trucks were seized by the District Authorities (Food and Civil Supplies) due to alleged irregularities and pilferage of ATF. As a result, the respondent failed to deliver the fuel to the intended destination, Kannur Air Force Station. - 4 - NC: 2025:KHC:983 CMP No. 342 of 2024 6. The respondent, represented by his learned counsel, has strongly opposed this petition. It was argued that the seizure of the tank trucks by the District Authorities is currently under challenge before this Court in W.P. No. 4437/2024. Consequently, the respondent contends that the petitioner cannot invoke the Arbitration Clause, as the Arbitrator lacks the jurisdiction to adjudicate matters that are already sub judice before this Court. 7. After careful consideration of the Civil Miscellaneous Petition and the annexed documents, this Court is satisfied that the petitioner has met the requirements prescribed under Section 11(4) of the Arbitration and Conciliation Act, 1996. The respondent's objection that the Arbitration Clause cannot be invoked due to the seizure of the tank trucks, which is the subject of W.P. No. 4437/2024 shall be left to the Arbitrator for determination. - 5 - NC: 2025:KHC:983 CMP No. 342 of 2024 8. In the light of the above said arbitration Clause and the contentions advanced by learned counsel appearing for the parties, this Court proceeds to pass the following; ORDER (i) The Civil Miscellaneous Petition is allowed, appointing Sri.H.M.Nanjundaswamy, retired District and Sessions Judge, as the sole Arbitrator to resolve the dispute between the petitioner and respondent in terms of the Clause-16 of the Bulk Petroleum Products Road Transport Agreement dated 10.08.2020 (Annexure-A) 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 Conciliation Centre and Sri.H.M.Nanjundaswamy, retired District - 6 - NC: 2025:KHC:983 CMP No. 342 of 2024 and Sessions Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 1 Sl No.: 16