- 1 - NC: 2025:KHC:11195 CMP No. 564 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 564 OF 2024 BETWEEN: M/S KUNDUR CONSTRUCTIONS PVT. LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT OF 1956 REGISTERED OFFICE #G03, ”KUNDUR PARK,” JAKKUR AMRUTHAHALLI ROAD JAKKUR, BENGALURU - 560064 REPRESENTED BY ITS AUTHORISING SIGNATORY MR. JAGADEESH SELVARAJU AGED ABOUT 32 YEARS S/O SELVARAJU …PETITIONER (BY SRI. KANTARAJA T., ADVOCATE) AND: M/S WOODKRAFT INDIA PVT LTD A COMPANY REGISTERED UNDER THE COMPANIES ACT OF 1956 REGISTERED OFFICE 56, NEW TIMBER YARD LAYOUT, MYSORE ROAD, BANGALORE - 560026. REPRESENTED BY ITS MANAGING DIRECTOR SRI MANAV GOEL, AGED ABOUT 50 YEARS …RESPONDENT (BY SMT. VEENA R., ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO A) APPOINT AN ARBITRATOR AS PER SECTION 11(5) AND 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, TO ADJUDICATE THE DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENT AS PER WORK ORDER DATED 15.11.2019 CLAUSE 5 PRODUCED IN ANNEXURE A AND ETC. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:11195 CMP No. 564 of 2024 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, praying to appoint an Arbitrator as per Section 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996, to adjudicate the dispute between the petitioner and the respondent in terms of clause 5 of the Work Order dated 15.11.2019, produced at Annexure-A. 2. Brief facts, leading rise to the filing of this petition are as follows: The petitioner is a Company, duly registered under the Companies Act, 1956, specializing in civil construction services and involved in the construction of various types of structures tailored to meet the specific requirements of its clients. The respondent is a Company registered under the Companies Act, 1956, engaged in providing interior solutions. In furtherance of its real estate projects, the respondent issued a work order dated 15.11.2019, - 3 - NC: 2025:KHC:11195 CMP No. 564 of 2024 entrusting the petitioner with the construction of “Civil and Structural Works” for a project titled ‘GOEL VILLA’, located at No.1 (Old Nos.446, 447 and 448), 11th main, 5th cross, Rajmahal Vilas Extension, Bengalore-560 080. The construction was presumably intended for the personal residence of the Company’s Managing Director. 2.1. The petitioner commenced work and submitted a series of running account bills as and when a stage was completed, totaling 13, while the project was in progress. The 13th running account bill was submitted on 20.07.2022 as the final bill for certification. However, the respondent delayed the certification process by a year ultimately unifying the bill on 13/7/23. The petitioner’s final bill, the 13th Running Account Bill dated 13.07.2023, was submitted under invoice amounting to Rs.21,67,030.71. The said invoice, prepared as per the respondent’s requirements, represents the final certified amount due. Before this, the petitioner had submitted a series of 12 Running Account Bills on various dates, each certified for payment as per the terms and conditions of the work - 4 - NC: 2025:KHC:11195 CMP No. 564 of 2024 order. The respondent made a partial payment of Rs.20,00,000/- on 09.05.2024 against a cumulative outstanding balance of Rs.90,34,089.53, after repeated requests and follow-ups, which exceeded six months and, therefore the outstanding balance came to Rs.70,34,089.53. The petitioner issued a legal notice on 01/07/24 demanding the payment of the outstanding amount. 2.2. The petitioner, invoked the Arbitration clause by issuing arbitration notice dated 16.08.2024, requesting the appointment of an Arbitrator. The respondent failed to reply to the arbitration notice. The respondent did not replied to the same. Hence, this petition. 3. Heard the arguments of learned counsel for the petitioner, and the learned counsel for the respondent. 4. Perused the records, and considered the submissions of the learned counsel for the parties. 5. The point, that arises for consideration is, as follows: - 5 - NC: 2025:KHC:11195 CMP No. 564 of 2024 ‘Whether the petitioner has made out grounds to refer the matter to the Arbitrator to resolve the dispute between the petitioner and the respondent in terms of Clause 5 of the work order dated 15.11.2019 as per provisions of the Arbitration and Conciliation Act, 1996?’ 6. It is not in dispute that the respondent issued a work order dated 15.11.2019 towards the proposed construction of “Civil and Structural Works” for a project titled ‘GOEL VILLA’, located at No.1 (Old Nos.446, 447 and 448), 11th main, 5th cross, Rajmahal Vilas Extension, Bengalore-560 080. Pursuant to the work order, the petitioner commenced the work, and submitted bills. The petitioner has submitted a revised tender with the conditions agreed upon between the petitioner and the respondent vide Annexure-B dated 6.11.2019. The respondent has partially released the amount, but did not release the entire outstanding due of Rs.90,34,089.53. The petitioner, invoked the Arbitration Clause i.e., Clause 5 of the work order dated 15.11.2019, which reads as under : - 6 - NC: 2025:KHC:11195 CMP No. 564 of 2024 “5. Jurisdiction : Any disputes, conflicts & issues arising out of this contract shall be dealt mutually among us an shall be resolved within agreed timeline in order to adhere project timeline. For any disputes leading to arbitration shall be dealt with as per provisions laid in Arbitration and Conciliation Act, 1996 (in principal) and latest amends with jurisdiction at Bangalore.” 7. Clause 5 of the work order provides for an arbitration clause that, if any dispute arises out of the contract, it shall be resolved by referring the dispute to the Arbitrator. The Petitioner issued a formal legal notice on 1/7/24 demanding the payment of outstanding balance vide Annexure-K. The petitioner invoked the arbitration clause by issuing an arbitration notice on 16.8.2024 vide Annexure-J. The said notice was served on the respondent. The respondent did not reply to the notices vide Annexures J and K. Admittedly, if any dispute arises out of the contract between the parties, the same has to be resolved through an Arbitrator as per clause 5 of the - 7 - NC: 2025:KHC:11195 CMP No. 564 of 2024 work order. As the dispute has arisen between the parties, it has to be resolved through the Sole Arbitrator, therefore this Court is of the opinion that the petitioner has made out grounds to refer the dispute to the Arbitrator as per the provisions of Arbitration and Conciliation Act, 1996. Hence, the point for consideration is answered in the affirmative. 8. Accordingly I proceed to pass the following order : ORDER i) The Civil Miscellaneous Petition is allowed. ii) Sri. Kukkaje Ramakrishna Bhat, Retired District Judge, is nominated as an Arbitrator to resolve the dispute between the parties in terms of Clause 5 of the Work Order dated 15.11.2019, as per the provisions of the Arbitration and Conciliation Act, 1996, and Rules. - 8 - NC: 2025:KHC:11195 CMP No. 564 of 2024 iii) The office is directed to communicate this Order to the learned Arbitrator, and the Arbitration and Conciliation Centre, Bengaluru. All the contentions of the parties are kept open. Sd/- (ASHOK S.KINAGI) JUDGE rs