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2025 DAILYLAW 39545 (KAR)

M/S 91 SPRINGBOARD BUSINESS HUB PRIVATE LIMITED v. M/S MUDITA PROPERTIES PRIVATE LIMITED

CMP/397/2024 · 2025-10-17

Suraj Govindaraj

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:41602 CMP No. 397 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 397 OF 2024 BETWEEN: M/S 91 SPRINGBOARD BUSINESS HUB PRIVATE LIMITED, A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT: E-3, RANI JHANSI ROAD, JHANDEWALAN EAST, CENTRAL DELHI, NEW DELHI 110055. AND ITS OFFICE AT, GOPALA KRISHNA COMPLEX 45/3, RESIDENCY ROAD, MAHATMA GANDHI ROAD, BENGALURU-560 025. REPRESENTED BY ITS REGIONAL HEAD - SOUTH DIVISION, MR. PIYUSH JAIN …PETITIONER (BY SRI CHRISTOPHER E, ADVOCATE) AND: M/S MUDITA PROPERTIES PRIVATE LIMITED, A COMPANY REGISTERED UNDER THE COMPANIES ACT 1956, HAVING ITS OFFICE AT FLAT NO.2, PARIJATHA APARTMENTS, NO. 45/1, RACECOURSE ROAD, BENGALURU 560 001. REP. BY ITS DIRECTOR. MR. DAMODAR …RESPONDENT (RESPONDENT SERVED) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING THAT Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:41602 CMP No. 397 of 2024 THIS HONBLE COURT MAY BE PLEASED TO A. PASS AN ORDER CONSTITUTING AN ARBITRAL TRIBUNAL BY APPOINTING MR. B. SHIVALINGE GOWDA, RETIRED DISTRICT JUDGE, EMPANELLED WITH THE ARBITRATION AND CONCILIATION CENTRE, BENGALURU (DOMESTIC AND INTERNATIONAL), AS THE SOLE ARBITRATOR FOR ADJUDICATING THE DISPUTES BETWEEN THE PARTIES, IN ACCORDANCE WITH CLAUSE 31 OF THE LETTER OF INTENT DATED 08.07.2022, PRODUCED AT ANNEXURE B ETC. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The Petitioner is before this Court seeking for the following reliefs: a. "Pass an order constituting an Arbitral Tribunal by appointing Mr. B. Shivalinge Gowda, Retired District Judge, empaneled with the Arbitration and Conciliation Centre, Bengaluru (Domestic and International), as the Sole Arbitrator for adjudicating the disputes between the parties, in accordance with clause 31 of the letter of Intent dated 08.07.2022, produced at Annexure B. b. Pass such other or further orders this Hon'ble Court may deem fit in the facts and circumstances of this case or as per the Arbitration clauses referred to above, in the interest of justice and equity, and c. Pass orders directing the Respondent to pay the costs of these proceedings to the petitioners. 2. A Letter of Intent was entered into between the petitioner and respondent, which is governed by an - 3 - HC-KAR NC: 2025:KHC:41602 CMP No. 397 of 2024 arbitration clause in terms of Clause 31, which is reproduced hereunder for easy reference: “Either Party may give written notice of a Dispute to the other Party within 15 (fifteen) days of the occurrence of the event which gives rise to such Dispute or the day that such an event came to the notice of the relevant Party. Each Party shall nominate 1 (one) person to attempt an amicable settlement of the Dispute within 7 (seven) days of notice provided under this Clause. If any Dispute arising between the Parties is not amicably settled within 15 (fifteen) days of commencement of amicable attempts to settle the same as provided above, the Dispute shall be referred to, and be finally settled by binding arbitration by a sole arbitrator to be jointly appointed both the Parties. The Parties agree that the arbitration proceedings shall be conducted only at Bengaluru in the English language and shall be governed by the provisions of the Arbitration and Conciliation Act, 1996 or any statutory re-enactment or modification thereof for the time being in force.” 3. There being certain dispute between the petitioner and respondent, the petitioner issued a notice on 18.04.2023 calling upon the respondent to comply with the demands made therein. Since no suitable response has been received, the petitioner by legal notice dated 17.05.2024 invoked the arbitration clause and appointed and nominated its arbitrator. - 4 - HC-KAR NC: 2025:KHC:41602 CMP No. 397 of 2024 The said notice though served, no reply was issued by the respondent. Corrigendum issued on 19.07.2024 also having been served, no reply has been received on the part of the respondent. In that background, the petitioner had approached this Court. Notice having been ordered to the respondent, respondent though served has remained unrepresented. 4. A perusal of the Letter of Intent clearly and categorically indicates that the relationship between the parties is governed by an arbitration clause and the dispute between them would have to be resolved by way of arbitration. Despite the nomination having been made, the said nomination has neither been considered nor has any other appointment been made on the part of the respondent. In that view of the matter, I pass the following: ORDER i) CMP is allowed. - 5 - HC-KAR NC: 2025:KHC:41602 CMP No. 397 of 2024 i) Sri.B.Shivalinge Gowda, former District Judge of the District Judiciary is appointed as a sole Arbitrator to arbitrate the dispute between the parties under the aegis of the Arbitration Centre attached to this Court. ii) Registry is directed to forward a copy of this order to the Director, Arbitration and Conciliation Centre for doing the needful. iii) Since the order is passed in the presence of all the counsel, they shall appear before the Director, Arbitration and Conciliation Centre without requirement of any notice on 27.10.2025 at 2.30 p.m. SD/- (SURAJ GOVINDARAJ) JUDGE PRS List No.: 1 Sl No.: 68