- 1 - NC: 2025:KHC:3277 CMP No. 418 of 2023 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. 418 OF 2023 BETWEEN: SRI. C. GOPALA RAJU, S/O LATE SRI. C. PEDDA NARASARAJU AGED ABOUT 77 YEARS RESIDING AT VARADARAJAPURAM, KARLAMBAKKAM POST, PALLIPAT TALUK, THIRUVALLUVAR DISTRICT-631027 PRESENTED BY HIS POWER OF ATTRONEY HOLDER SRI. CHANDRASHEKAR S/O C. GOPALA RAJU, AGED ABOUT 55 YEARS, RESIDING AT NO.5, 1ST FLOOR, 9TH CROSS, INDIRANAGAR 1ST STAGE, BENGALURU-560038 …PETITIONER (BY SRI. M.S.RAJENDRA, ADVOCATE) AND: SRI. SHANKARAPPA S/O LATE SRI MUNIYAPPA AGED ABOUT 59 YEARS RESIDING AT NO.202, SIDDAPURA VILLAGE, RAMAGONDAHALLI POST, BENGALURU EAST TALUK, BENGALURU-560066. …RESPONDENT (BY SRI. BIPIN HEGDE, ADVOCATE) Digitally signed by AL BHAGYA Location: High Court of Karnataka - 2 - NC: 2025:KHC:3277 CMP No. 418 of 2023 THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(5) & (6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO NOMINATE AND APPOINT RESPONDENT'S NOMINEE ARBITRATOR IN TERMS OF CLAUSE 35 OF THE MEMORANDUM OF UNDERSTANDING DATED 12.10.2007 (ANNEXURE-A) THIS PETITION, COMING ON FOR ORDERS, 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(5) & (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of Sole Arbitrator to resolve the dispute and difference between the parties in terms of memorandum of understanding dated 12.10.2007 evidenced at Annexure-A. 2. The petitioner has initiated the present proceedings on the ground that the respondent has breached the terms of the agreement by creating third- party rights over a portion of the property, contrary to the - 3 - NC: 2025:KHC:3277 CMP No. 418 of 2023 agreed stipulations. In light of this alleged breach, the petitioner invoked the arbitration clause embedded in the agreement by issuing a formal notice to the respondent, calling upon them to proceed with the arbitration process. However, despite the notice, the respondent did not furnish any reply or indicate a willingness to participate in the arbitration proceedings as proposed by the petitioner. This non-response prompted the petitioner to approach this Hon’ble Court, seeking the appointment of a sole Arbitrator to adjudicate the disputes between the parties. 3. Upon being served with notice of this petition, the respondent appeared before this Hon’ble Court and engaged legal counsel to represent their case. During the proceedings, the learned counsel for the respondent acknowledged the existence and validity of the arbitration clause contained in the agreement. However, the learned counsel expressed reservations regarding the suitability of the Arbitrator proposed by the petitioner in their initial notice. The respondent’s counsel, while concurring with - 4 - NC: 2025:KHC:3277 CMP No. 418 of 2023 the need to proceed with arbitration, proposed the appointment of Sri. Ajit J. Gunjal, a Former Judge of the High Court of Karnataka, as the sole Arbitrator to ensure impartiality and fairness in the resolution of the dispute. The petitioner, upon hearing the respondent’s proposal, readily agreed to the appointment of Justice Ajit J. Gunjal as the sole Arbitrator, thereby reflecting a willingness on both sides to move forward with the arbitration process amicably. 4. After thorough review of the petition along with annexures and supporting documents, this Court is satisfied that the petitioner has met the procedural requirements outlined under Section 11(4) of the Arbitration and Conciliation Act, 1996. This Court has also taken note of the statement made by the respondent acknowledging the existence of arbitration clause. 5. In the light of the aforesaid clause of arbitration and contentions advanced by both the parties, this Court proceeds to pass the following: - 5 - NC: 2025:KHC:3277 CMP No. 418 of 2023 ORDER (i) Civil Miscellaneous Petition is allowed appointing Sri. Ajit J.Gunjal, 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; (iii) Office is directed to communicate this order to the Arbitration and Conciliation Centre and to Sri. Ajit J.Gunjal, Former Judge, High Court of Karnataka, as required under the Arbitration and Conciliation Centre Rules, 2012. SD/- (SACHIN SHANKAR MAGADUM) JUDGE CA List No.: 3 Sl No.: 30