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2025 DAILYLAW 32255 (KAR)

MR. CHIKKAMUNIREDDY v. M/S SHWETA AND GITA CONSTRUCTIONS INDIA PVT LTD

CMP/380/2023 · 2025-06-06

B M Shyam Prasad

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 380 OF 2023 BETWEEN: 1. MR. CHIKKAMUNIREDDY S/O L ATE VENKATREDDY, AGED ABOUT 66 YEARS, 2. MR. PURUSHOTHAM S/O CHIKKAMUNIREDDY, AGED ABOUT 42 YEARS, 3. MASTER BHAVISH P REDDY S/O PURUSHOTHAM, AGED ABOUT 10 YEARS,(MIONR) REPRESENTED BY ITS FATHER AS NATURAL GUARDIAN MR. PRUSHOTHAM 4. SMT. KALPANA D/O CHIKKAMUNIREDDY, AGED ABOUT 38 YEARS, 5. SMT. ARUNA D/O CHIKKAMUIREDDY AGED ABOUT 36 YEARS, 6. SMT. LAKSHMAMMA W/O LATE MUNISHAMIREDDY, AGED ABOUT 62 YEARS, Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 7. MR. VENUGOPAL S/O LATE MUNISHAMYREDDY AGED ABOUT 44 YEARS, 8. MASTER KUMAR V S/O VENUGOPAL AGED ABOUT 11 YEARS, 9. MISS PRIYANKA V D/O VENUGOPAL AGED ABOUT 14 YEARS, REP BY THEIR FATHER AND NATURAL GUARDIAN MR. VENUGOPAL 10. SMT. KALAVATHI D/O LATE MUNISHAMYREDDY AGED ABOUT 38 YEARS, 11. SMT. PAPAMMA W/O LATE MUNIREDDY AGED ABOUT 66 YEARS, 12. SMT. KAVITHA D/O LATE MUNIREDDY AGED ABOUT 42 YEARS, 13. MR. ANILKUMAR S/O LATE MUNIREDDY AGED ABOUT 37 YEARS, 14. KUMARI NEHA D/O ANILKUMAR AGED ABOUT 10 YEARS, REP BY HER FATHER AS NATURAL GUARDIAN, MR.ANILKUMAR - 3 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 RESIDING AT IGGALURU VILLAGE, CHANDAPURA POST, ATTIBELE HOBLI, ANEKAL TALUK, BENGALURU URBAN DISTRICT BENGALURU-560081. …PETITIONERS (BY SRI. DARSHAN J.,ADVOCATE) AND: 1. M/S SHWETA AND GITA CONSTRUCTIONS INDIA PVT LTD SITE NO. 132, IGGALURU VILLAGE, ATTIBELE HOBLI, ANEKAL TALUK, BANGALORE 560099. REPRESENTED BY AUTHORISED SIGNATORY SRI. SITANSU SHEKAR BEHURA. 2. SRI. SITANSU SHEKAR BEHURA AUTHORISED SIGNATORY, M/S SHWETA AND GITA CONSTRUCTIONS INDIA PVT LTD SITE NO. 132, IGGALURU VILLAGE, ATTIBELE HOBLI, ANEKAL TALUK, BANGALORE 560099. …RESPONDENTS (VIDE ORDER DATED 25.03.2025 SERVICE OF NOTICE TO R1 AND R2 HELD SUFFICIENT) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1986, PRAYING TO 1 APPOINT A SOLE ARBITRATOR FOR THE PURPOSE OF DECIDING - 4 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 DISPUTE BETWEEN THE PARTIES ARISING FROM JOINT DEVELOPMENT AGREEMENT DATED 01.07.2015, AS PER CLAUSE XVII ANNEXURE-A ENTERED IN TO BETWEEN THE PETITIONERS AND BY MR. SITANSU SHEKAR BHURA DIRECTOR, AND AUTHORIZED SIGNATORY ON BEHALF OF 1ST RESPONDENT, REGISTERED AS DOCUMENT NO. CMP-1-03125-2015- 16 BOOK I, C.D.NO. CMPD 139, IN THE OFFICE OF THE SUB REGISTRAR, BASAVANGUDI CHAMARAJAPETE ON 02.07.2015. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners are the owners of certain immovable properties, and they have filed this petition under Section 11 of the Arbitration and Conciliation Act, 1996 [for short, 'the Act'] for appointment of a sole Arbitrator relying upon the Agreement for Arbitration in the Joint Development Agreement dated 01.07.2015 with the respondents. This agreement for arbitration reads as under: - 5 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 "In the event of any dispute arising out of or touching upon any terms of this agreement, whether during its currency or after its cancellation shall be referred to arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and an arbitrator shall be appointed by developer/s and his decision shall be final and binding on both the parties." The petitioners have also caused Notice as is required under Section 21 of the Act, but the respondents have caused no reply. In fact, the respondents, though served, have remained absent with this Court holding service of notice to them sufficient on 25.03.2025. Sri Darshan J, the learned counsel for the petitioners, submits that since the respondents had to appoint a sole Arbitrator, the petitioners, in terms of the Notice dated 17.08.2023, have called upon the respondents to nominate a Sole Arbitrator but to no avail. On the dispute, Sri Darshan J submits that the - 6 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 agreement was for development of the subject property within certain timelines, but the respondents have taken no action to begin the development. This Court is persuaded to opine that there is arbitrable dispute and the agreement for resolution of such dispute by a sole Arbitrator. In the light of the afore, the following: ORDER [a] The petition is allowed, and Sri. S S Nagarale, a retired District Judge, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioners and the respondents and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the Centre. It would be needless to observe that, subject to just - 7 - HC-KAR NC: 2025:KHC:19173 CMP No. 380 of 2023 exceptions, all questions are left open to be considered in the arbitral proceedings. [b] The Registry is directed to communicate this order [by E-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and also to Sri. S S Nagarale, a retired District Judge, Address: No.1515, 5th Cross, 2nd Main, Judicial Layout, GKVK Post, Bengaluru 560 065 [E-mail: ssnagarale1@gmail.com] as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996. Sd/- (B M SHYAM PRASAD) JUDGE AN/-