- 1 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 445 OF 2024 BETWEEN: SRI. H. MAHADEV GOUD, AGED ABOUT 36 YEARS, S/O H. NAGARATHNA, R @ HOUSE NO. 336, 9TH MAIN ROAD, DOLLARS COLONY, J.P. NAGAR, 4TH PHASE, BENGALURU - 560 078. …PETITIONER (BY SRI. VIJAY B.K, ADVOCATE) AND: SMT. G.S. SRIDEVI, D/O GUBBI SRINIVASA MURTHY, AGED ABOUT 42 YEARS, R @ # MATHRU KRUPA, NEHRU COLONY, 1ST CROSS, BEHINDI POST OFFICE, BELLARY - 583 103. …RESPONDENT (SERVICE OF NOTICE TO RESPONDENT HELD SUFFICIENT) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO I)APPOINT AN ARBITRATOR AS PER CLAUSE 9 OF THE AGREEMENT OF SALE DATED 25/08/2021 REGISTERED ON Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 24/9/2021 BEARING NO.849 IN THE OFFICE OF SUB- REGISTRAR BASAVANGUDI (BANASHANKARI BENGALURU) AS PER ANNEXURE-C FOR ADJUDICATION OF THE DISPUTE RAISED BY THE PETITIONER AND ETC., 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(6) of the Arbitration and Conciliation Act, 1996 (‘the Act, 1996’ for brevity) for the appointment of an Arbitrator in terms of clause 9 of the Agreement of sale dated 25.08.2021 vide Annexure-C to resolve the disputes between the petitioner and the respondent as per the provisions of the Arbitration and Conciliation Act, 1996 and Rules. 2. Brief facts, leading rise to the filing of this petition are as follows: The respondent was intending to purchase the schedule property and she was facing financial difficulties in arranging money for the sale consideration. The - 3 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 respondent approached the petitioner and requested for borrowing an amount of Rs.1,40,00,000/-. The petitioner agreed to provide a loan of Rs.1,40,00,000/- for purchase of the schedule property. On 22.12.2012 the petitioner transferred an amount of Rs.65,00,000/- and on 22.05.2013, the petitioner’s sister transferred an amount of Rs.75,00,000/- to the respondent for purchase of the suit schedule property. The respondent purchased the schedule property out of the funds lent by the petitioner and his sister. The respondent paid a nominal interest of 1% p.a. on the loan to the petitioner. The respondent expressed her inability to repay the loan and interest. The respondent proposed for transferring the schedule property in favour of the petitioner as full payment for the outstanding loan and interest and the petitioner accepted the same. Accordingly, the same agreement was executed on 25.08.2021 unregistered on 24.09.2021. The respondent agreed to sell the property to the petitioner for Rs.1,45,00,000/- and the said agreement for sale contains - 4 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 an arbitration clause for the resolution of disputes. Despite the agreement, the respondent has evading the execution of the registered sale deed. The petitioner filed an application under Section of the Act, 1996 in arbitration application in A.A.No.128/2021 on the file of learned Principal City Civil and Sessions Judge (CCH-23), Bengaluru seeking an order of temporary injunction restraining the respondent from alienating the schedule property. The petitioner also invoked an arbitration clause by filing a petition in civil miscellaneous petition No.241/2024 before this Court. This Court vide order 12.06.2024 disposed of with a liberty to the petitioner to invoke arbitration clause by issuing notice under Section 11 of the Act, 1996 and granted liberated to file a fresh petition. Pursuant to the order passed by this Court, the petitioner issued an arbitration notice on 25.06.2024 vide Annexure-G. The said notice was served to the respondent. The respondent did not reply to the arbitration notice. Hence, this petition. - 5 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 3. Notice was issued to the respondent. Despite service of notice, none appears for the respondent. 4. Heard the arguments of learned counsel for the petitioner. 5. Learned counsel for the petitioner submits that the petitioner and the respondent have entered into an agreement and the respondent did not perform her obligation. Hence, there is an arbitration clause. The petitioner invoked an arbitration clause by issuing notice under Section 11 of the Act, 1996. Hence, he prays to allow the petition. 6. Perused the records, and considered the submissions of the learned counsel for the petitioner. 7. The point, that arises for consideration is as follows: “Whether the petitioner made out a ground to resolve the dispute to the Arbitrator in terms of clause 9 of the sale agreement dated - 6 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 25.08.2021 registered on 24.09.2021 vide Annexure-C, as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules?” 8. Admittedly, there is a sale agreement between the petitioner and the respondent dated 25.08.2021 vide Annexure-C. The respondent did not perform her part of contract. The petitioner invoked an arbitration clause by filing a civil miscellaneous petition before this Court in CMP.No.241/2024. The petitioner without issuing a notice under Section 11 of the Act, 1996 filed civil miscellaneous petition. This Court vide order dated 12.06.2024 held that the petitioner without issuing a notice under Section 11(6) of the Act, 1996 cannot maintain a petition. The petitioner has withdrawn the said petition with a liberty to the petitioner to proceed in accordance with law after issuing a arbitration notice to the respondent. After disposal of the civil miscellaneous petition, the petitioner got issued arbitration notice dated 25.06.2024 invoking arbitration - 7 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 clause No.9 of the sale agreement dated 25.08.2021 vide Annexure-C. The notice was served to the respondent. Despite service of notice, the respondent did not reply to the arbitration notice. Admittedly, there is an arbitration clause in the Agreement dated 25.08.2021, which reads as under: Clause 9: In the event of a dispute, the parties will subject themselves to a binding arbitration to be decided by a sole arbitrator to be appointed by the PURCHASER, and shall be governed by Arbitration and Conciliation Act, 1996, and the place of arbitration shall be Bangalore. 9. From the perusal of the arbitration clause, it provides that, in the event of a dispute, the parties shall be subject to a binding arbitration to be decided by a sole arbitrator to be appointed by the purchaser, i.e., the petitioner. If a dispute arises between the petitioner and the respondent, the dispute has to be resolved through the arbitrator. Thus, the petitioner has made out grounds - 8 - HC-KAR NC: 2025:KHC:21837 CMP No. 445 of 2024 to resolve the dispute between the parties through an arbitrator. In view of the above discussion, I answer the point for consideration in the affirmative. 10. Accordingly, I proceed to pass the following: ORDER i. The Civil Miscellaneous Petition is allowed. ii. Hon’ble Justice Sri Bailur Shankar Rama, Retired District Judge, is nominated as the sole Arbitrator to resolve the dispute between the parties to the petition in terms of clause 9 of the agreement of sale dated 25.08.2021 as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules. iii. The office is directed to communicate this order to the learned sole Arbitrator and the Arbitration and Conciliation Centre, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE SSB CT: BHK