- 1 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 504 OF 2024 BETWEEN: DR S S CHANDRASHEKAR S/O LATE PROF. S.N. SHANTHAVEERAPPA, AGED ABOUT 72 YEARS, RESIDING AT NO. 122, I MAIN, M.L.A. LAYOUT, R T NAGAR, BENGALURU 560 032 …PETITIONER (BY SRI. MAHESH CHANDRA B.N., ADVOCATE FOR SRI. NAVEEN G S., ADVOCATE) AND: M/S NIHARIKA COMPUTATIONAL ENGINEERING SOLUTIONS PVT LTD HAVING OFFICE AT J C PLAZA, NO. 716, NEW NO.35, 42ND CROSS, OFF 12TH MAIN ROAD, RAJAJINAGAR III BLOCK, BENGALURU 560 010 REPRESENTED BY ITS MANAGING DIRECTOR MR. RUDRESH GANGANNA, HAVING ITS REGISTERED OFFICE AT NO. 329/01, 22ND CROSS, PINE LINE ROAD BHUVANESHWARINAGAR, T-DASARAHALLI, BANGALORE 560057 …RESPONDENT (BY SRI. T C SATHISHKUMAR., ADVOCATE) Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING THAT THIS HON’BLE COURT MAY KINDLY BE PLEASED TO 1) ALLOW THE ABOVE PETITION AND APPOINT AN ARBITRATOR TO ADJUDICATE UPON THE DISPUTE BETWEEN THE PARTIES HEREIN IN ACCORDANCE WITH CLAUSE 16 OF THE LEASE AGREEMENT DATED 28.01.2021 ANNEXURE A AND B AND CLAUSE 13 OF THE AMENDED LEASE AGREEMENT DATED 21.08.2021 ANNEXURE C. 2) PASS ANY SUCH OTHER ORDER OR ORDER AS THIS HON’BLE COURT DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI ORAL ORDER 1. This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, "the Act") for the appointment of an Arbitrator to resolve the disputes between the parties to the petition in terms of Clause (16) of the Lease Agreement dated 28.01.2021 vide Annexure "A" and Clause (13) of the amended Lease Agreement dated 21.08.2021 vide Annexure "C". 2. Brief facts leading rise to the filing of this petition are as follows: - 3 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 3. The petitioner is the absolute owner of a commercial property leased to the respondent—a consultancy company and they entered into a Lease Agreement on 28.01.2021, which was subsequently amended twice in April 2021 and August 2021. The Agreements include dispute resolution clauses mandating arbitration for unresolved disputes. 4. In February 2023, the respondent issued a legal notice claiming an approximate amount of ₹1,84,000/- and expressed its intention to vacate the premises. 5. The petitioner responded to the notice seeking an amicable resolution of the dispute, however, the same was met with evasive replies from the respondent. The petitioner made efforts to resolve the matter and for the appointment of an Arbitrator. 6. The petitioner got issued arbitration notices on 14.02.2024 vide Annexure “F” and on 20.06.2024 - 4 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 vide Annexure “H”. The respondent did come forward for appointment of an Arbitrator to resolve the disputes between the parties. Hence, this petition. 7. The respondent did not file a statement of objections. 8. Heard the arguments of the learned counsel for the petitioner and the learned counsel for the respondent. 9. The learned counsel for the petitioner submits that there was a Lease Agreement executed between the parties to the petition, and a dispute arose between the parties to the petition. The petitioner tried to resolve the disputes amicably, but the respondent did not agree. The petitioner invoked the arbitration clause by issuing a notice. The respondent did not reply. Hence, he submits that since there exists an - 5 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 arbitration clause in Annexures "A" and "C", he prays to allow the petition. 10. Per contra, learned counsel for the respondent prays to dispose of the petition. 11. Perused the records and considered the submissions of the learned counsel for the parties. 12. The point that arises for consideration in this petition is: “Whether the petitioner has made out a ground to refer the matter to the arbitrator in terms of Clause (16) of the Lease Agreement dated 28.01.2021 and Clause (13) of the Amended Lease Agreement dated 21.08.2021 as per the provisions of the Arbitration and Conciliation Act.” - 6 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 13. There is no dispute regarding the execution of a Lease Agreement dated 28.01.2021 and an amended Lease Agreement dated 21.08.2021 and disputes have arisen between the petitioner and the respondent. 14. The respondent issued a legal notice to the petitioner vide Annexure "D" dated 27.02.2023, calling upon the petitioner to pay an amount of ₹1,84,583/- with an interest at the rate of 2% per month, and ₹50,000/- towards loss in his business with interest at the rate of 2% per annum, etc. The petitioner replied to the legal notice vide Annexure "E". 15. As observed above, a dispute arose between the parties to the petition. There is an Arbitration Clause (Clause 16) in the Lease Agreement dated 28.01.2021 and Clause (13) of the Amended Lease Agreement dated 21.08.2021, which read as follows: - 7 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 Clause (16) of the Lease Agreement dated 28.01.2021: “16. The jurisdiction of this agreement in the even of any litigation shall be courts situated in the Bangalore City. However, the Preferred Mode of dispute resolution is by Arbitration/amicable discussions.” Clause (13) of the Amended Lease Agreement dated 21.08.2021: “13. Dispute Resolution: The first step towards dispute resolutions is by amicable discussions – if dispute is not resolved through amicable discussions within one calendar month, such disputes will be resolved by Arbitration as per Arbitration and Conciliation Act of India and its subsequent amendments. Arbitration panel consist of two arbitrators (one arbitrator appointed by LESSOR, one arbitrator appointed by LESSEE), third umpire in the capacity of retired judge will be appointed by the above two arbitrators. Cost of arbitration need to be equally shared by LESSOR and LESSEE. Place of arbitration is Bangalore city. Notice for arbitration should be in writing - 8 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 and to be send only through the registered post with acknowledgement. The aggrieved party will have the rights to approach any Court of Law/Rent controller (at Bangalore jurisdiction courts of law), but only after completion of arbitration proceedings. ” 16. The petitioner invoked the Arbitration Clause by issuing a notice vide Annexure “H” dated 20.06.2024 proposing the name of an arbitrator. The respondent did not came forward to the arbitration. There is an Arbitration clause in the Lease Agreement and the Amended Lease Agreement, and the dispute must be resolved through an arbitration. Hence, the petitioner made out a ground to refer the matter to the Arbitration. 17. In view of the above discussion, I answer the point for consideration in the affirmative, and accordingly, I pass the following order. - 9 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 ORDER (i) This Civil Miscellaneous Petition is allowed. (ii) Sri S.H.Mittalkod, retired District Judge, is appointed as an Arbitrator to resolve the disputes between the parties to the petition in accordance with provisions of the Arbitration and Conciliation Act, 1996 and the Rules. (iii) The Office is directed to communicate this order to the learned Arbitrator and the Arbitration and Conciliation Center, Bengaluru. (iv) The Office is directed to return the original copies to the petitioner, if any, after retaining a photocopy of the same. - 10 - HC-KAR NC: 2025:KHC:22528 CMP No. 504 of 2024 (v) In view of the disposal of the petition, pending interlocutory applications, if any, stand disposed of. Sd/- (ASHOK S.KINAGI) JUDGE RK CT:KHV List No.: 2 Sl No.: 13