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2025 DAILYLAW 36062 (KAR)

M/S ANAJANEYA QUARRIES v. SRI. V SUBRAMANI

CMP/567/2024 · 2025-04-25

Ashok S Kinagi

body2025

Judgment text

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- 1 - NC: 2025:KHC:17185 CMP No. 567 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 567 OF 2024 BETWEEN: M/S. ANAJANEYA QUARRIES, SWATHANTHRA NAGAR, CHIKKA BASAVANAPURA, VIRGONAGAR POST, BENGALURU - 560 049, REPRESENTED BY ITS MANAGING PARTNER SRI. T. KUMAR, S/O SRI. THANGAVELU, AGED ABOUT 54 YEARS. …PETITIONER (BY SRI. NAGENDRA KUMAR K, ADVOCATE) AND: 1. SRI. V. SUBRAMANI, S/O SRI. VENKATAPPA, AGED ABOUT 56 YEARS, R/AT CHEEMANGALA POST, JANGAMAKOTE HOBLI, SIDLAGATTA, CHIKKABALLAPURA DISTRICT - 562 102. 2. SRI. MURALI KRISHNA, S/O SRI. ANNAPPA AGED ABOUT 39 YEARS, R/AT NO.2, NAVARATHNA, AGRAHARA VILLAGE, SADAHALLI POST, BENGALURU NORTH TALUK, BENGALURU - 562 110. Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:17185 CMP No. 567 of 2024 3. SMT. CHAITHRA, W/O SRI. MURALI KRISHNA, AGED ABOUT 26 YEARS, R/AT NO.2, NAVARATHNA, AGRAHARA VILLAGE, SADAHALLI POST, BENGALURU NORTH TALUK, BENGALURU - 562 110. 4. SRI. N.K. MAHESH KUMAR, S/O FATHER NAME NOT KNOWN, AGED ABOUT 36 YEARS, R/AT NO.45, NAVARATHNA AGRAHARA VILLAGE, SADAHALLI POST, BENGALURU NORTH TALUK, BENGALURU - 562 110. 5. SRI. DASA S/O SRI MUNIVENKATAPPA, AGED ABOUT 42 YEARS, R/AT NO.126, KASABA HOBLI, SADAHALLI VILLAGE AND POST, BENGALURU - 562 110. 6. SRI. G. SRINIVASA, S/O SRI. GOVINDAPPA, AGED ABOUT 42 YEARS, R/AT HUNEGAL VILLAGE, KASABA HOBLI, CHIKKABALLAPURA TALUK, CHIKKABALLAPURA DISTRICT - 562 101. 7. SRI. S.K. THAMMAIAH, S/O LATE DODDAKRISHNAPPA, AGED ABOUT 53 YEARS, R/AT SADAHALLI VILLAGE AND POST, KASABA HOBLI, DEVANAHALLI TALUK BENGALURU RURAL DISTRICT - 562 110. - 3 - NC: 2025:KHC:17185 CMP No. 567 of 2024 8. SRI. K. MANJUNATH, S/O SRI. T. KUMAR, AGED ABOUT 23 YEARS, R/AT SWATHANTHRA NAGAR, CHIKKA BASAVANAPURA, VIRGONAGAR, BENGALURU - 560 049. 9. SRI. K. MUTHU, S/O SRI. T. KUMAR, AGED ABOUT 21 YEARS, R/AT SWATHANTHRA NAGAR, CHIKKA BASAVANAPURA, VIRGONAGAR, BENGALURU - 560 049. 10. SMT. SHAKUNTALA, W/O SRI. T. KUMAR, AGED ABOUT 43 YEARS, R/AT SWATHANTHRA NAGAR, CHIKKA BASAVANAPURA, VIRGONAGAR, BENGALURU - 560 049. …RESPONDENTS (BY SRI. VARUN JAYKUMAR PATIL, ADVOCATE FOR R1; SRI. A. LOURDU MARIYAPPA, ADVOCATE FOR R5, R6 AND R7; R2, R3, R4, R8, R9 AND R10 ARE SERVED) THIS CMP IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO a) APPOINT AN SOLE ARBITRATOR IN TERMS OF THE CLAUSE 23 OF THE PARTNERSHIP DEED DATED 21.10.2019, AS PER ANNEXURE-A, TO RESOLVE THE DISPUTE BETWEEN THE PETITIONER AND RESPONDENTS, IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI - 4 - NC: 2025:KHC:17185 CMP No. 567 of 2024 ORAL ORDER This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, for the appointment of the sole arbitrator to resolve the dispute that arose between the petitioner and respondents in terms of Clause 23 of the Partnership Deed dated 21.10.2019, vide Annexure-A, as per the provisions of the Arbitration and Conciliation Act, 1996. 2. Brief facts, leading rise to the filing of this petition are as follows: The petitioner company is a registered partnership firm registered under the Indian Partnership Act, 1932. The said partnership firm is represented by its managing partner, and all the respondents are the partners of firm. The managing partners and the other partners of the firm who are the respondents have entered into partnership deed dated 21.10.2019. The petitioner firm had obtained the quarrying lease/licence in QL No.405, measuring 02 acres in respect of Sy.No.144, situated at Guvvalakana - 5 - NC: 2025:KHC:17185 CMP No. 567 of 2024 Halli, Kasaba Hobli, Chikkaballapur Taluk, Chikkaballapur District, by the Department of Mines and Geology, under the Karnataka Minor Mineral Concession Rules in Form No.E in the name of the partnership firm, i.e., M/s Anjaneya Quarries, on 04.09.2019 for 30 years with effect from 20.03.2003 for the minerals of grey granite and building stone. 3. Respondents No.6 and 7 are trying to transfer their share and right to the third party to conduct the quarry work in the quarry plant without the consent of the other partners, and the said transfer of rights or share to the third party to conduct the quarry business is against the terms of Clause 17 of the partnership deed dated 21.10.2019. 4. The petitioner tried to resolve the issue by settling disputes amicably. However, the respondents have not agreed to solve the issues amicably. Hence, the petitioner invoked the Arbitration Clause by issuing an arbitration notice under Section 21 of the Arbitration and - 6 - NC: 2025:KHC:17185 CMP No. 567 of 2024 Conciliation Act, 1996, on 19.03.2024, and proposed the name of Sri Krishna Murthy Naik, a practising advocate at Bengaluru, as the sole arbitrator to resolve the said dispute between the parties to the petition. The said notice was served upon the respondents. The respondents have not replied to the arbitration notice and did not agree with the name of arbitrator nominated by the petitioner. Hence, the petitioner is constrained to file this petition. 5. The respondents have not filed their statement of objections. 6. Heard the arguments of the learned counsel for the petitioner, learned counsel for respondent No.1 and the other respondents. 7. Learned counsel for the petitioner submits that respondents No.6 and 7 are acting contrary to Clause 17 of the partnership deed and the dispute that has arises between the petitioner and respondents. The petitioner invoked the arbitration clause by issuing a notice dated - 7 - NC: 2025:KHC:17185 CMP No. 567 of 2024 19.03.2024 proposing the name of Sri. Krishna Murthy Naik, a practising advocate at Bengaluru, as the sole arbitrator to resolve the disputs between the parties to the petition. He submits that the respondents have not replied to the arbitration notice and did not agree with the name of arbitrator nominated by the petitioner. Hence, he prays to allow the petition. 8. Learned counsel for respondent No.1 submits no objection to allow the petition. 9. Perused the records, and considered the submissions of the learned counsel for the parties. 10. The point, that arises for consideration is: "whether the petitioner has made out a ground to refer the dispute to the sole arbitrator for resolving the dispute in terms of clause 23 of the Partnership Deed dated 21.10.2019 as per the provisions of the Arbitration and Conciliation Act,1996". 11. There is no dispute regarding the execution of the partnership deed between the petitioner and - 8 - NC: 2025:KHC:17185 CMP No. 567 of 2024 respondents, and further, if any dispute arises between the parties, the said dispute has to be resolved through an arbitration as per Clause 23 of the Partnership Deed dated 21.10.2019, which reads as under: "Admittedly, a dispute arises between the partners of the said firm. The said dispute has to be resolved through arbitration. The respondents have submitted no objection to allow the petition." 11. In view of the above discussion, I answer the point for consideration in the "affirmative". 12. Learned counsel for the parties submit that, Sri.V.N.Ravindra, Retired District Judge, may be nominated as an arbitrator. Accordingly, I proceed to pass the following order: ORDER 1. The Civil Miscellaneous petition is allowed. 2. Sri.V.N.Ravindra, Retired District Judge, is nominated as the sole Arbitrator to resolve the dispute - 9 - NC: 2025:KHC:17185 CMP No. 567 of 2024 between the parties in terms of clause 23 of the Partnership Deed dated 21.10.2019, as per the provisions of the Arbitration and Conciliation Act 1996 and the Rules. 3. The Office is directed to forward the copy of this order to the learned Arbitrator, and the Arbitration and Conciliation Centre, Bengaluru. 4. All the contentions of the parties are kept open. Sd/- (ASHOK S.KINAGI) JUDGE HDK CT: BHK