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2025 DAILYLAW 32022 (KAR)

M/S VIMTA LABS LIMITED v. DRM DIAGNOSTICS

CMP/390/2024 · 2025-01-24

Sachin Shankar Magadum

body2025

Judgment text

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- 1 - NC: 2025:KHC:3202 CMP No. 390 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. 390 OF 2024 BETWEEN: M/S VIMTA LABS LIMITED PLOT NO. 141/2, 142, IDA PHASE II CHERLAPALLY, R R DISTRICT HYDERABAD, TELANGANA-500051 REPRESENTED BY ITS AUTHORIZED SIGNATORY SRI AJAY B VIRKHADE …PETITIONER (BY SRI. VYASA KIRAN UPADHYA B R, ADVOCATE) AND: DRM DIAGNOSTICS 789, 1ST PHASE, 4TH STAGE VIJAYANAGARA, MYSURU-570 017 REPRESENTED BY ADMINISTRATION UNIT HEAD MR. CHIDU S.S. …RESPONDENT (BY SRI. PURUSHOTHAM J, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11 (6) OF THE ARBITRATION AND CONCILIATION ACT 1996 PRAYING TO APPOINT HONBLE JUSTICE (RTD) A.V. CHANDRASHEKAR OR SRI KUKKEJI RAMAKRISHNA BHAT Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:3202 CMP No. 390 of 2024 OR SRI SUDHEENDRA KUMAR OR ANY OTHER PERSON THAT THIS HONBLE COURT MAY DEEM FIT AS THE SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES THAT HAVE ARISEN BETWEEN THE PARTIES AS PER ANNEXURE-A, AGREEMENT DATED 04.08.2022 AS PER CLAUSE 15 OF THE AGREEMENT DATED 04.08.2022. 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(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 15 of the Strategic Alliance Agreement dated 04.08.2022 as per Annexure-A. 2. Petitioner is a public listed company engaged in the business of providing agri bio/pharmaceutical, medical devices, specialty chemical and electronic company, - 3 - NC: 2025:KHC:3202 CMP No. 390 of 2024 integrated with technical and regulatory expertise to support all stages of product development. 3. Petitioner and respondent entered into a strategic alliance agreement on 04.08.2022, for petitioner to provide staff/technicians required to run and operate respondent's diagnostic centre located at Mysuru. Petitioner undertook the operational expenses and investment in accordance to the Alliance agreement. 4. The petitioner claim that he has paid closing stock of reagents and consumables before the Agreement and have also arranged for designated home collection. The petitioner alleges that it was agreed that payment in respect of invoices will be made within 15 working days of raising the monthly invoices. Alleging default, the petitioner issued a notice demanding respondent to pay a sum due and expressed their intention to appoint an arbitrator and names of arbitrator may also be suggested. - 4 - NC: 2025:KHC:3202 CMP No. 390 of 2024 5. Respondent issued a replied notice acknowledging the existence of arbitration clause and by their counter suggested a retired District Judge to be appointed as a sole arbitrator. 6. Since there is no disagreement regarding the existence of the arbitration clause, and the only point of contention pertains to the appointment of a sole arbitrator, this Court is of the view that the petitioner has duly adhered to the procedural requirements as mandated under Section 11(4) of the Arbitration and Conciliation Act. The petitioner has satisfied the conditions necessary for invoking the jurisdiction of this Court by following the due process outlined in the Act. There is no indication that the petitioner has failed to comply with any pre-requisite procedural steps, including issuing a prior notice for the appointment of an arbitrator and affording the respondent an opportunity to participate in the process. In light of these considerations, this Court finds that all necessary procedural formalities have been met, and the petitioner's - 5 - NC: 2025:KHC:3202 CMP No. 390 of 2024 request for the appointment of a sole arbitrator merits due consideration. 7. In the light of the aforesaid clause of arbitration and the contentions advanced by the petitioner the following order is passed: ORDER (i) The petition is allowed appointing Hon'ble Mr. Justice A.N.Venugopal Gowda Former Judge, High Court of Karnataka, 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. (ii) All contentions inter se parties are left open for adjudication in the arbitration proceedings. - 6 - NC: 2025:KHC:3202 CMP No. 390 of 2024 (iii) The office is directed to communicate this order to the Arbitration and Conciliation Centre and to Hon'ble Mr. Justice A.N.Venugopal Gowda, Former Judge, High Court of Karnataka, as required under the Arbitration and Conciliation Centre Rules, 2012. SD/- (SACHIN SHANKAR MAGADUM) JUDGE AG List No.: 3 Sl No.: 22