- 1 - NC: 2025:KHC:15826 CMP No. 424 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 424 OF 2024 BETWEEN: 1. MR. ADITYA N RAI AGE ABOUT 44 YEARS S/O LATE SRI NARAYANA THIMAPPA RAI RESIDING AT POUND GARDEN KADRI ROAD MANGALORE - 575 003 D K DISTRICT …PETITIONER (BY SRI. CHANDRANATH ARIGA K., ADVOCATE) AND: 1. MR ASHWIN SHETTY AGED ABOUT 46 YEARS S/O Y UMANATH SHETTY FLAT NO. 904 PLANET SKS APARTMENT KADRI HILLS MANGALURU - 575 004 2. MRS. NISHALI A. SHETTY ALIAS NISHALI N RAI AGED ABOUT 46 YEARS W/O ASHWIN SHETTY FLAT NO. 904, PLANET SKS APARTMENT KADRI HILLS MANGALURU - 575 004 3. MS. REETHIKA SHETTY AGED ABOUT 44 YEARS Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:15826 CMP No. 424 of 2024 D/O Y UMANATH SHETTY FLAT NO. 402, B BLOCK SPRINGFIELD APTS SARJAPURA ROAD AMBALIPURA BANGALORE - 560 102 4. CERA SANITARYWARE LIMITED REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. JAGADEESAN MARIMUTHU (DEPUTY GENERAL MANAGER HR AND ADMINISTRATION ) 7TH AND 8TH FLOOR B -WING, PRIVILON AMBLI BRTS ROAD ISCKON CROSS ROAD AHEMEDABAD - 380 059 GUJARAT 5. M/S AXIS INFINITY A PARTNERSHIP FIRM REGISTERED UNDER THE PROVISIONS OF THE INDIA PARTNERSHIP ACT, HAVING ITS REGISTERED OFFICE AT NO.555, AXIS PADEGAL 4TH FLOOR, 9TH CROSS ROAD, 3RD PHASE, J P NAGAR NEAR SONY CENTRE, BANGALORE - 560 078 …RESPONDENTS (R1 TO R5 ARE SERVED) THE PETITIONER HAS FILED THIS CIVIL MISC. PETITION UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT PRAYING TO A) REFER THE DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENTS TO ARBITRATION BY WAY OF APPOINTMENT OF ARBITRATOR AS PER CLAUSE 25 OF ARBITRATION AGREEMENT DATED 22.12.2022 (ANNEXURE-A) B) DIRECT THE RESPONDENTS TO PLAY THE COST OF THE PETITION C) GRANT SUCH OTHER RELIEF AS THIS HON'BLE COURT DEEM FIT. - 3 - NC: 2025:KHC:15826 CMP No. 424 of 2024 THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI ORAL ORDER This Civil Miscellaneous Petition is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996, seeking an appointment of an Arbitrator to resolve the dispute that has arise between the parties in terms of clause 25 of the registered lease agreement dated 22.12.2022 (Annexure-A) as per the provisions of the Arbitration and Conciliation Act, 1996. 2. Brief facts, leading rise to the filing of this petition are as follows: The petitioner and respondent Nos.1 to 3 are the co- owners of the buildings situated on the ground floor and second floor by name Axis Samruddhi situated at 4th phase, J.P.Nagar, Bengaluru. A registered lease agreement dated 22.12.2022 was entered between the petitioner, respondent Nos.1 to 3 and respondent No.4, and the said premises was leased. Respondent No.1 was collecting the rent of the premises and has not paid the portion of the - 4 - NC: 2025:KHC:15826 CMP No. 424 of 2024 rent due to the petitioner. The petitioner has issued a notice dated 10.06.2024 calling upon respondent No.1 to distribute the rental amount collected by him, and also upon the respondents not to lease out the ground floor of the said building without his concurrence. 3. The petitioner filed a suit against the respondents seeking partition and for accounts in O.S.No.5620/2024 on the file of the City Civil and Sessions Judge, Bengaluru, and the same is pending for consideration. It is contended that the registered lease agreement between the petitioner and respondents provides for an arbitration. Clause 25 of the registered lease agreement, reads as follows: "In the event any dispute arises between the parties in connection with this Agreement or the construction of the agreement or the rights, duties or liabilities of the parties hereto under this agreement, the matter shall be resolved by final and binding arbitration by one arbitrator to be jointly appointed by the parties. The venue of arbitration shall be in Bangalore. The arbitration proceedings shall be conducted in English. Any award made in such arbitration will be final and binding on the parties". - 5 - NC: 2025:KHC:15826 CMP No. 424 of 2024 4. The petitioner invoked an arbitration clause by issuing an arbitration notice dated 10.06.2024 to the respondents nominating Mr.Umanath Shetty, the father of respondent No.1, as an arbitrator, and respondent Nos.1 to 3 have sent a reply dated 20.06.2024 admitting the execution of registered lease agreement, but rejected the request for settlement of the dispute by arbitration. It is contended that there is a dispute between the petitioner and the respondents regarding the registered lease agreement, dated 22.12.2022, the premises and its income. Hence, the petitioner is constrained to file this petition. 5. A notice was issued to the respondents. Despite service of notice, none appears for the respondents. Taking note of the registered lease agreement, at vide Annexure-A and clause 25 of the registered lease agreement, which provides for dispute resolution through arbitration, I proceed to pass the following order. - 6 - NC: 2025:KHC:15826 CMP No. 424 of 2024 ORDER 1. The Civil Miscellaneous petition is allowed. 2. Hon'ble Justice Mr.A.N.Venugopala Gowda, Former Judge, High Court of Karnataka, is nominated as the sole arbitrator to enter into the said reference of the arbitration, and act as the sole arbitrator in the present case in the Arbitration and Conciliation Centre, Bengaluru (Domestic and International), as per the provisions of the Arbitration and Conciliation Act, 1996, and the rules. 3. The Office is directed to forward the copy of this order to the learned Arbitrator, and the Arbitration and Conciliation Centre, Bengaluru (Domestic and International). 4. All the contentions of the parties are kept open. Sd/- (ASHOK S.KINAGI) JUDGE RCK, List No.: 1 Sl No.: 13