- 1 - NC: 2025:KHC:12256 WP No. 22690 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD WRIT PETITION NO. 22690 OF 2024 (GM-CPC) BETWEEN: M/S HABITAT CREST APARTMENT OWNERS ASSOCIATION A BODY REGISTERED UNDER THE APARTMENT OWNERSHIP ACT 1972, HAVING ITS REGISTERED ADDRESS AT HABITAT CREST APARTMENTS OPP ZURI HOTEL, ITPL MAIN ROAD WHITEFIELD BENGALURU 560048 THROUGH ITS PRESIDENT MR RAGHURAM GOPALAKRISHNA. …PETITIONER (BY SRI. DEEPAK BHASKAR., ADVOCATE) AND: M/S PRAGNYACREST PROPERTIES PRIVATE LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956, HAVING ITS REGISTERED ADDRESS OPP TO HOTEL ZURI RAJAPALYA HOODI MAHADEVAPURA POST, BENGALURU 560048 THROUGH ITS DIRECTOR AJAY KUMAR GOPAL. …RESPONDENT (NOTICE TO RESPONDENT IS SERVED AND UNREPRESENTED) Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - NC: 2025:KHC:12256 WP No. 22690 of 2024 THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED: 24.06.2024 AS PASSED BY THE LD. V ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU IN I.A.NO.2 OF O.S.9156/2019 (ANNEXURE-A) AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE H.T. NARENDRA PRASAD ORAL ORDER 1. This writ petition under Article 227 of the Constitution of India is filed by the petitioner-plaintiff challenging the order dated 24.06.2024 passed by the V Addl. City Civil and Sessions Judge, Bengaluru, on I.A.No.2 filed by the defendant under Section 8 of the Arbitration and Conciliation Act in O.S.No.9156/2019, whereby the Trial Court has allowed the said application. 2. The plaintiff has filed the suit against the defendant primarily making claims under the maintenance agreement and the sale and construction agreements, which have been entered into by the defendant with the individual members of the association. On service of suit summons, the defendant appeared and filed I.A.No.2 under Section 8 - 3 - NC: 2025:KHC:12256 WP No. 22690 of 2024 of the Arbitration and Conciliation Act seeking to refer the matter to Arbitration Tribunal by dismissing the suit. The Trial Court by impugned order has allowed the said application and directed the plaintiff to present the dispute before the competent authorities. Being aggrieved by the said order, the present petition is filed. 3. Heard the learned counsel for the petitioner. Respondent is served and unrepresented. Perused the writ papers. 4. The application i.e., I.A.No.2 is filed by the defendant under Section 8 of the Arbitration and Conciliation Act seeking to refer the present dispute to arbitration by dismissing the suit. As per the provisions of Section 8 of the Arbitration and Conciliation Act, the Trial Court has to decide whether there is any arbitration clause in the agreement and if it comes to the conclusion that there is an arbitration clause, thereafter, the application has to be allowed. - 4 - NC: 2025:KHC:12256 WP No. 22690 of 2024 5. In the present case, the defendant has filed the application under Section 8 of the Arbitration and Conciliation Act. In the impugned order, the Trial Court has referred to Order 7 Rule 10 of CPC and it is not clear under which provision, the impugned order has been passed. This Court in W.P.No.100173/2024 dated 22.01.2024 has held that the defendant cannot maintain an application under Order 7 Rule 10 of CPC. 6. Under the circumstances and in the interest of justice, this Court is of the opinion that the impugned order is liable to be set aside and the application requires to be reconsidered by the Trial Court. 7. Accordingly, the following order is passed: ORDER a) The writ petition is allowed. b) The order dated 24.06.2024 passed by the V Addl. City Civil and Sessions Judge, Bengaluru, on - 5 - NC: 2025:KHC:12256 WP No. 22690 of 2024 I.A.No.2 filed by the defendant under Section 8 of the Arbitration and Conciliation Act in O.S.No.9156/2019, is set aside. c) The Trial Court is directed to reconsider the application i.e., I.A.No.2 filed by the defendant under Section 8 of the Arbitration and Conciliation Act and pass appropriate orders in accordance with law. Sd/- (H.T. NARENDRA PRASAD) JUDGE DM LIST NO.: 1 SL NO.: 28