- 1 - CMP No. 100017 of 2025 RESERVED ON : 17.09.2025 PRONOUNCED ON : 23.09.2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 23RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE G BASAVARAJA CIVIL MISC PETITION NO.100017 OF 2025 BETWEEN: SHRI MADAN PAI S/O. ACHUT PAI AGED 45 YEARS, OCC: BUSINESS, RESIDING AT ASHOK NAGAR ROAD, HUBBALLI, DIST:DHARWAD 580021. …PETITIONER (BY SRI. KAMALAKAR MOHAN SANKESHWAR, ADVOCATE) AND: 1 . THE MANAGING DIRECTOR NWKRTC, HOSUR ROAD, HUBBALLI, DIST: DHARWAD 580023. 2 . THE DIVISIONAL CONTROLLER, NWKRTC, GOKUL ROAD, HUBBALLI, DIST: DHARWAD 580030. …RESPONDENTS (BY SRI. M.M. KHANNUR, ADVOCATE) THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT A SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES BETWEEN THE PETITIONER AND THE RESPONDENTS ARISING OUT OF THE AGREEMENT DATED 01.06.2023. MALLIKARJUN RUDRAYYA KALMATH Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Date: 2025.09.24 10:41:42 +0530 - 2 - CMP No. 100017 of 2025 IN THIS CIVIL PETITION HAVING BEEN HEARD AND RESERVED ON 17.09.2025 AND COMING ON FOR PRONOUNCEMENT OF JUDGMENT THIS DAY, DELIVERED THE FOLLOWING: CAV ORDER (PER: THE HON'BLE MR. JUSTICE G BASAVARAJA) 1. The petitioner has filed this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, to appoint an Arbitrator to adjudicate the dispute between the petitioner and respondent as per the Arbitration Clause of the agreement of the Agreement Deed dated 01.06.2023. 2. Brief facts leading to filing of this petition are that Respondent No. 2, i.e., the Divisional Controller, NWKRTC, issued a public tender for allotment of a commercial open space measuring 2115.84 Square Feet, located near the Dharwad Bus Station, adjacent to the Power Grid, for the purpose of setting up a business unit. The Petitioner participated in the said tender process and was declared the successful bidder, leading to execution of a formal agreement dated 01.06.2023 between the Petitioner and NWKRTC. - 3 - CMP No. 100017 of 2025 3. The petitioner was permitted to establish and operate business activities on the allotted site, in accordance with the terms and conditions stipulated therein. Importantly, clause of the agreement contains providing for resolution of any dispute or difference arising between the parties, through arbitration. 4. The Petitioner fulfilled all initial obligations, including payment of security deposit, obtaining necessary trade and local licenses, and initiating setup activities at the site. However, despite compliance, respondents have obstructed the Petitioner's right to operate and have failed to allow peaceful possession and enjoyment of the site because of the many obstacles for establishment of shop in the respondents' premises. 5. The Petitioner addressed several representations and notices to the respondents requesting compliance with the agreement. However, respondents have not bothered and there is breach of condition by the respondent but the - 4 - CMP No. 100017 of 2025 respondent has not referred the matter to arbitration, as provided in the contract. 6. The petitioner served a formal notice dated 10.07.2024, invoking the arbitration clause and requesting respondents to appoint an arbitrator to resolve the dispute. 7. Despite such notice, the Respondents failed to take any steps for constitution of the Arbitral Tribunal. Instead, the Petitioner was orally informed that the matter "does not require arbitration" and will be "resolved administratively," which completely contradicts the terms of the agreement. On all these grounds sought for allow this petition. 8. Learned counsel for the respondents has not filed any objections. 9. I have examined the materials placed before me. 10. The agreement for the grant of licence to run an open space measuring 2,115.84 square feet, located near - 5 - CMP No. 100017 of 2025 the Dharwad Bus Station, dated 01.06.2024, contains an arbitration clause, which reads as under: “Any dispute or difference of claim arising out of, or in connection with, or relating to the present contract or the breach, termination or invalidity thereof, shall be referred and settled under the Arbitration Centre-Karnataka (domestice and international) Rules 2012 by one or more arbitrators appointed in accordance with its rules”. In case of any dispute arising between the Licensor and the Licensee in respect of the interpretation or performance of any terms of conditions of this agreement/ breach of this agreement the same shall be referred to the Managing Director of the Licensor whose decision thereon shall final and conclusive.” 11. The petitioner has also produced a copy of the order passed in W.P. No.103173/2024 (GM-RES) dated 10.06.2024, in which this Court passed the following order:: “ORDER The learned counsel for the respondents raised an objection regarding maintainability of the writ petition on the ground that the contract contemplates that, in case of a dispute relating to the present contract or breach, termination or invalidity, such dispute has to be referred and settled under the Arbitration Centre-Karnataka - 6 - CMP No. 100017 of 2025 (Domestic & International) Rules, 2012 by one or more arbitrators appointed in accordance with the rules. 2. Having examined the arbitration clause indicated in the agreement, petitioner cannot maintain the captioned petition. 3. Reserving liberty to the petitioner to get the matter referred to the arbitrator, the captioned petition stands disposed off.” 12. A copy of the notice dated 10.07.2024, addressed to the Managing Director of NWKRTC, along with the postal acknowledgment, has also been filed. A copy of the letter dated 31.01.2025, addressed by the Divisional Controller of NWKRTC, Dharwad Division, has also been produced. 13. Considering the arbitration clause mentioned in the agreement and also the orders passed by this Court in Writ Petition No.103173 of 2024 disposed of on 10.06.2024, I proceed to pass the following: - 7 - CMP No. 100017 of 2025 O R D E R i) Petition filed under Section 11(6) of Arbitration and Conciliation Act, 1996 is allowed; ii) Sri Vishwanath V. Angadi, Retired Principal District and Sessions Judge, D.C. Nagar, Near K.C. Park Post Office, Dharwad 580 008 Ph: 9480617999, is appointed as Sole Arbitrator to resolve the dispute between the parties; iii) Registry to send the copy of this order to the Sole Arbitrator supra for taking necessary action. Sd/- (G BASAVARAJA) JUDGE AC CT-CMU