- 1 - NC: 2025:KHC:3203 CMP No. 368 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. 368 OF 2024 BETWEEN: M/S ETERNITY DEVELOPERS PVT. LTD A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.11, HAYES ROAD, RICHMOND TOWN, BENGALURU-560 025, REPRESENTED BY ITS DIRECTOR SRI. AVINASH PRABHU, S/O PETER J.R. PRABHU, AGED ABOUT 50 YEARS …PETITIONER (BY SRI. CYRIL PRASAD PAIS,ADVOCATE) AND: 1. SRI SURESH CHANDRA SHETTY M S/O LOKAYYA SHETTY, AGED ABOUT 69 YEARS, SHASTHAVU, D-NO.5-3-82-1 BALLAL BAGH, MANGALORE-575 003 2. SMT. SHASHI PRABHA, W/O SURESH CHANDRA SHETTY, M. AGED ABOUT 57 YEARS, SHASTHAVU, D-NO.5-3-82-1 BALLAL BAGH, MANGALORE-575 003 …RESPONDENTS (BY SRI. SRINIVASA. N. C, ADVOCATE) Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:3203 CMP No. 368 of 2024 THIS CIVIL MISC. PETITION IS UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT,1996 PRAYING TO APPOINT AN ARBITRATOR TO ARBITRATE THE DISPUTE THAT AROSE BETWEEN THE PETITIONER AND THE RESPONDENTS AS PER THE SALE CUM CONSTRUCTION AGREEMENT DATED 17.09.2009 VIDE CLAUSE NO.24 OF THE SAID SALE CUM CONSTRUCTION AGREEMENT AT ANNEXURE-E. FURTHER, PASS SUCH OTHER ORDER OR FURTHERS ORDERS BASED ON THE NATURE AND CIRCUMSTANCES OF THE ABOVE CASE AS THIS HONBLE COURT DEEMS FIT, IN THE INTEREST OF JUSTICE AND EQUITY. 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 difference between the parties herein in terms of Clause 24 of the sale cum construction Agreement dated 17.09.2009 as per Annexure-E. 2. The petitioner - developers has entered into the sale agreement with respondent on 17.09.2009 and in terms of agreement, the respondent has agreed to purchase sale apartment bearing No.301 situated on the - 3 - NC: 2025:KHC:3203 CMP No. 368 of 2024 3rd floor on 'A' Block of Skyline Blue Berry Hills-II, measuring 1299 sq.ft. along with 712.27 sq.ft of undivided share right, title and interest in the property. 3. Respondent agreed to pay a total sum of Rs.31,37,700/ to petitioner on a payment schedule. Respondent failed to make payment causing the petitioner to issue a demand notice. Upon failure to comply with the demand notice, petitioner got issued a legal notice calling upon the respondent to pay the balance consideration of Rs.15,54,973 within 15 days of receipt. 4. The petitioner had issued a legal notice on 26.02.2024, thereby invoking arbitration clause alleging that the respondent has failed to make payment in terms of the sale agreement. 5. The respondent issued reply and denied the contentions of the legal notice and therefore this petition is filed. - 4 - NC: 2025:KHC:3203 CMP No. 368 of 2024 6. Learned counsel appearing for the respondent fairly concedes with regard to the existence of arbitration clause, however, expresses his reservations in regard to the arbitration and nomination invoking arbitration clause. 7. On perusal of Civil Miscellaneous Petition and annexures and documents, this Court is of the view that this Court is satisfied that the petitioner has complied with the procedural requirements as stipulated under Section 11(4) of the Arbitration and Conciliation Act, coupled with the fact that the respondent acknowledges the arbitration clause. 8. 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.Moosa Kunhi Nayar Moole, Former District and Sessions Judge, as the sole arbitrator to enter reference of the - 5 - NC: 2025:KHC:3203 CMP No. 368 of 2024 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 Sri.Moosa Kunhi Nayar Moole, 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.: 21