- 1 - NC: 2025:KHC:4598 CMP No. 467 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO. 467 OF 2023 BETWEEN: SMT. NEETU M. D., W/O LATE NARESH BAJAJ AGED ABOUT 44 YEARS RESIDING AT NO. 3, HARI OM NIVAS VIVEKANANDA ROAD, RAMAKRISHNA NAGARA I BLOCK, VASU LAYOUT, MYSURU - 570 023. REPRESENTED BY HER GPA HOLDER SRI SUNIL M. D., S/O LATE SRI P.D.MANOHAR AGED ABOUT 40 YEARS RESIDING AT NO. 3 HARI OM NIVAS, VIVEKANANDA ROAD RAMAKRISHNA NAGARA I BLOCK, VASU LAYOUT, MYSURU - 570 023. PARTNER, WHITE BLOSSOM HOME STAY A PARTNERSHIP FIRM. …PETITIONER (BY SRI MILASH ARROL NORONHA, ADVOCATE) AND: MR. RAGHU KARIAPPA S/O LATE M.B.KARIAPPA AGED ABOUT 65 YEARS RESIDING AT NO. AIYAPPA PLANTATION KANDANNA KOLLY VILLAGE SUNTIKOPPA HOBLI, SOMWARPET TALUK Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:4598 CMP No. 467 of 2023 KODAGU DISTRICT KARNATAKA - 570 237. PARTNER, WHITE BLOSSOM HOME STAY A PARTNERSHIP FIRM. …RESPONDENT (BY SRI. TUMBIGI PRABHUGOUDA BASAVANTARAYAGOUDA, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO NOMINATE AND APPOINT A SOLE ARBITRATOR TO RESOLVE THE DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENT WITH RESPECT TO THE PARTNERSHIP DEED DATED 08.08.2018 EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENT AS PER THE ARBITRATION AGREEMENT IN CLAUSE - 13 PRODUCED AT 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) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’), requesting this Court to appoint a sole arbitrator. 2. Upon receiving the notice, the respondent promptly entered an appearance and engaged legal counsel to contest the matter. In response to the petition, - 3 - NC: 2025:KHC:4598 CMP No. 467 of 2023 the respondent has filed a detailed statement of objections, vehemently disputing the authenticity and validity of the partnership deed dated 08.08.2018, the lease agreement dated 08.08.2018, and the memorandum of understanding dated 08.08.2018. The respondent asserts that these documents are fabricated and do not hold any legal sanctity. Furthermore, the respondent contends that the present petition, filed under Section 11(5) of the Arbitration and Conciliation Act, seeking the appointment of an arbitrator, is not maintainable in law. It is argued that the petition is premised on an unregistered document that is not adequately stamped, rendering it legally insufficient for enforcement. The respondent has, therefore, urged the court to reject the petition at the threshold on the ground that the arbitration clause, being contained in an inadmissible document, cannot be acted upon. 3. The petitioner, in the present Civil Miscellaneous Petition, claims to have entered into a Memorandum of - 4 - NC: 2025:KHC:4598 CMP No. 467 of 2023 Understanding (MoU) with the respondent, based on which substantial investments were allegedly made towards the development of the property. It is stated that pursuant to the terms of the MoU, the petitioner invested a sum of Rs.35,00,000/- towards capital infrastructural development. Relying on the lease agreement, the petitioner avers that construction activities were undertaken, and an agreement was executed for the development of a Home Stay project on the subject property. The petitioner contends that the project was successfully completed in accordance with the agreed terms. However, contrary to the contractual obligations and the understanding between the parties, the respondent has now unilaterally advertised the property for lease to third parties. The petitioner alleges that such an action is in direct contravention of the terms of the agreement and has, therefore, invoked Section 21 of the Arbitration and Conciliation Act by issuing a legal notice to the respondent. In response, the respondent has filed - 5 - NC: 2025:KHC:4598 CMP No. 467 of 2023 objections, contesting the claims and disputing the very existence of a binding contract between the parties. 4. This Court has thoroughly examined the contents of the petition and carefully scrutinized the annexures submitted alongside. Upon such examination, this Court is satisfied that the petitioner has complied with all procedural and substantive requirements as stipulated under Section 11(4) of 'the Act'. The petitioner has duly invoked the arbitration mechanism in accordance with the Agreement and has fulfilled all necessary preconditions for seeking the intervention of this Court to appoint an Arbitrator. 5. The respondent has raised a fundamental objection regarding the admissibility of the arbitration agreement, contending that the petition is based on an unregistered and insufficiently stamped document, thereby rendering it legally unenforceable. Given the well- established principle under arbitration law, it becomes imperative for the arbitrator to examine whether the - 6 - NC: 2025:KHC:4598 CMP No. 467 of 2023 arbitration clause can be acted upon despite the alleged deficiencies in stamping and registration. Therefore, this issue necessitates a determination by the arbitrator, who is best positioned to adjudicate on the enforceability of the arbitration agreement in light of the objections raised. 6. In the light of the above said arbitration Clause, contentions advanced by the petitioner and by the respondent, this Court proceeds to pass the following; ORDER (i) The Civil Miscellaneous Petition is allowed, appointing Sri.Mohan S. Sankolli, retired District and Sessions Judge, as the sole Arbitrator to resolve the dispute between the petitioner and respondent in terms of the Clause No.13 of the Partnership Deed dated 08.08.2018 (Annexure-A) to the petition. (ii) All contentions are kept open for adjudication in the arbitration proceedings. - 7 - NC: 2025:KHC:4598 CMP No. 467 of 2023 (iii) The Office is directed to communicate this order to the Arbitration and Conciliation Centre and Sri.Mohan S. Sankolli, retired District and Sessions Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. SD/- (SACHIN SHANKAR MAGADUM) JUDGE NVJ/NBM List No.: 3 Sl No.: 4