- 1 - HC-KAR NC: 2025:KHC-D:17912 CMP No. 100018 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 10TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA CIVIL MISC PETITION NO. 100018 OF 2025 BETWEEN: SRI PRABHAKAR HANUMANTH KANABUR AGED ABOUT 42 YEARS, S/O. SRI HANUMANTH KANABUR RESIDING AT VPC NO.116/2, SHUBHODAYA, V K KANDAGALI, TALUK BILAGI, DISTRICT BAGALKOT-587116. …PETITIONER (BY SRI SHASHANK S. HEGDE, ADVOCATE) AND: PUBLIC WORKS DEPARTMENT BAGALKOTE DIVISION BAGALKOT, KARNATAKA-587101, REPRESENTED BY ITS EXECUTIVE ENGINEER. …RESPONDENT (BY SMT. GIRIJA S. HIREMATH, HCGP) THIS CIVIL MISCELLANEOUS PETITION FILED UNDER SECTION 11(5) AND (6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT SRI AMEETKUMAR P. JAIN, CHARTERED ACCOUNTANT, HAVING OFFICE AT JAIN BUILDING, GROUND FLOOR, SHABADI COMPOUND, EXTENSION AREA, BAGALKOTE-587101 OR ANY OTHER SUITABLE PERSON IN THE CONSIDERED OPINION OF THIS HONBLE COURT, AS THE SOLE ARBITRATOR TO RESOLVE AND ADJUDICATE THE DISPUTES THAT HAVE ARISEN BETWEEN THE PARTIES IN ACCORDANCE WITH THE ARBITRATION AND DISPUTE RESOLUTION CLAUSE(S) IN THE DOCUMENT TITLED TERMS AND CONDITIONS OF TENDER K/W-4 BEARING TENDER REFERENCE NO.KPWD/2019-20/RD/WORK_INDENT118137 ATTACHED AS ANNEXURE-A HEREIN. Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:17912 CMP No. 100018 of 2025 THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. The petitioner is before this court seeking for the following reliefs: A. Appoint Sri. Ammetkumar P Jain, Charted Accountant, having officer at Jain Building, Ground Floor, Shabadi Compound, Extension area, Bagalkote – 587 101, or any other suitable person in the considered opinion of this Hon’ble Court, as the Sole Arbitrator to resolve and adjudicate the disputes that have arisen between the parties in accordance with the Arbitration and Dispute Resolution Clause(s) in the document titled ‘Terms and Conditions of Tender – K/W-4’, bearing Tender Reference No. KPWD/2019- 20/RD/WORK_INDENT118137’ attached as Annexure ‘A’ herein; and B. Pass such other Order(s) as this Hon’ble Court may deem fit in the interest of justice and equity. 2. Heard Sri. Shashank Hegde learned counsel appearing for the petitioner and Smt. Girija S. Hiremath learned HCGP appearing for the respondent. 3. Facts in brief germane are as follows: The respondent floats a tender inviting bids for the purpose of ‘Improvements to road Ilkal-Kandagal-Sajjalagudda in Hungund Taluk of Bagalkote District for the year 2019-20’. The - 3 - HC-KAR NC: 2025:KHC-D:17912 CMP No. 100018 of 2025 petitioner applies for the said tender and emerges as the successful bidder, in pursuance of which an agreement is entered into by both the parties. Accordingly, the petitioner commences the work and raises several bills for the work completed. The respondent receives a communication from the government approving the work slips/ bills. However, the said approval is not communicated to the petitioner for a long period despite several representations due to which the work come to be delayed. Later, when the respondents communicate the approval of the work slips to the petitioner, a supplementary agreement is executed between the parties. An application is then submitted by the respondent, before the state government seeking for extension of the project timeline, allegedly without the consent of the petitioner. The respondent then imposes a penalty on the petitioner for the delay in completion of the work. The petitioner objects to the same and issues a reply requesting for waiver of the penalty and adjustment of the revised prices of the materials to ensure the completion of the project but receives no reply from the respondent. Due to non-consideration of the petitioner’s requests, the petitioner issues a legal notice to the respondent demanding the respondent to discharge their contractual - 4 - HC-KAR NC: 2025:KHC-D:17912 CMP No. 100018 of 2025 obligations by waiving the penalty and accept the handover of the terminated project on an ‘As-is’ basis without any risk or burden to the petitioner and additionally pay a compensation of Rs. 5 lakhs. Since the respondent rejects the demands of the petitioner, the petitioner issues another notice to the respondent invoking the arbitration clause provided in the Conditions of Contract in the bid document and also proposes an arbitrator to be appointed for the resolution of the dispute. The respondent replies to the notice stating that the petitioner’s request was pending before the higher authorities. Due to the inaction of the respondent, the petitioner is before this Court seeking for the appointment of an arbitrator by this Court. 4. The learned counsel for the petitioner submits that the dispute is an arbitral dispute and there is an arbitration clause in the Conditions of Contract in the bid document. Therefore, the petitioner seeks for the appointment of an independent arbitrator by this Court, in accordance with Section 11 of the Arbitration and Conciliation Act, 1996. - 5 - HC-KAR NC: 2025:KHC-D:17912 CMP No. 100018 of 2025 5. The learned HCGP for the respondent does not dispute the submission regarding the appointment of an arbitrator by this Court, but only insists that a neutral arbitrator be appointed and not the arbitrator proposed by the petitioner. 6. In that light, I deem it appropriate to appoint Sri. S. S. Balloli, Retired District Judge, as an Arbitrator to enter into the dispute and arbitrate upon the same. 7. For the aforesaid reasons, I pass the following: ORDER i) The petition is disposed of, appointing Sri. S. S. Balloli, Retired District Judge, Shreyas Colony, Halyal Road, Saptapur, Near Dasankoppa Circle, Dharwad- 580008 as the sole arbitrator to enter reference of the disputes between the parties and conduct proceedings at the Arbitration and Conciliation Centre, (Domestic and International), Belagavi, - 6 - HC-KAR NC: 2025:KHC-D:17912 CMP No. 100018 of 2025 according to the Rules governing the said Arbitration Centre. ii) All contentions inter se parties are left open for adjudication in the arbitration proceedings. iii) The Office is directed to communicate this order to the Arbitration and Conciliation Centre and Sri. S. S. Balloli, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. , Sd/- (M.NAGAPRASANNA) JUDGE KGK CT-CMU LIST NO.: 1 SL NO.: 92