M/S GURUPRIYA HOUSING PVT LTD v. SMT. B. C. SUJATHA
CMP/254/2025 · 2025-10-17
Suraj Govindaraj
body2025
DailyLaw.ai
[ 2025 DAILYLAW 41532 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 41532 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2025:KHC:41603 CMP No. 254 of 2025
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. 254 OF 2025 BETWEEN:
M/S. GURUPRIYA HOUSING PVT. LTD., HAVING ITS OFFICE PRESENTLY AT NO.27, "GURUPRIYA ANUSHKA", 5TH CROSS, 3RD MAIN, BTM 2ND STAGE, DOLLARS COLONY, N.S.PALYA, BANGALORE-560076 REP. BY ITS MANAGING DIRECTOR K.V. BHAT. …PETITIONER (BY SRI Y K NARAYANA SHARMA, ADVOCATE)
AND:
1. SMT. B. C. SUJATHA, W/O. SRI CNARAYANASWAMY, AGED ABOUT 48 YEARS.
2. SMT. ANURADHA C, W/O. SRI GOPINATH M, AGED ABOUT 42 YEARS.
BOTH 1 AND 2 ARE R/AT F-2, PERODY PARADISE APARTMENTS, 365, 6TH MAIN, 11TH CROSS, VIJAYA BANK LAYOUT, BANGALORE-560076.
AND PRESETNLY ALSO AT:
NO.251, 4TH MAIN, VIJAYA BANK LAYOUT, BANNERAGHATTA ROAD, BENGALURU 560076. …RESPONDENTS (BY SRI ABHISHEK N V, ADVOCATE FOR R-1 & R-2)
THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996., PRAYING TO
Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA
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HC-KAR NC: 2025:KHC:41603 CMP No. 254 of 2025
APPOINT A SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES BETWEEN THE PARTIES IN TERMS OF ANNEXURE A i.e., AS PER CLAUSE NO. 21 OF THE ANNEXURE A AGREEMENT DATED 08.08.2013 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 SURAJ GOVINDARAJ
ORAL ORDER
1. The petitioner is before this Court seeking for the following reliefs; a. "Appoint a sole arbitrator to adjudicate the disputes between the parties in terms of Annexure 'A' i.e., as per Clause No. 21 of the Annexure-'A' Agreement dated 08.08.2013 in the interest of justice and equity. b. and to grant such other relief or reliefs as this Hon'ble Court deems fit to grant under the circumstance of the case in the interest of justice and equity."
2. A Development Agreement had been entered into between the petitioner and respondents on 08.08.2013 which is governed by an arbitration clause in terms of Clause 21, which is reproduced hereunder for easy reference:
“21. DISPUTE RESOLUTION
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HC-KAR NC: 2025:KHC:41603 CMP No. 254 of 2025
21.1 If any dispute arises amongst the Parties during the subsistence of this Agreement or thereafter, in connection with the validity, interpretation, implementation or alleged breach of any provision of this Agreement or regarding a question, including the question as to whether the termination of this Agreement has been legitimate, the Parties shall endeavour to settle such dispute amicably. 21.2 In case of failure by the Parties to resolve the dispute in the manner set out above within 30 (thirty) days from the date when the dispute arose (or such longer period as the Parties may agree to in writing), the dispute shall be referred to a sole arbitrator, to be appointed by the parties mutually. If the Parties are unable to appoint a sole arbitrator by way of mutual consent, the Developer shall appoint one arbitrator and the Owners (together) shall appoint one arbitrator and the two arbitrators so appointed shall appoint the third arbitrator who shall be the presiding arbitrator. The hearings of the arbitrator / arbitrators' panel shall be held in Bangalore under the provisions of the Arbitration and Conciliation Act, 1996. The proceedings of the arbitration shall be conducted in English language. The costs and expenses of the arbitration, including without limitation, the fees of the arbitration and the fees of the arbitrator, shall be borne by the Owners and the Developer in the manner decided by the arbitrator / arbitrators’ panel. 21.3 Each party shall co-operate in good faith to expedite, to the maximum extent practicable, the conduct of any arbitral proceedings commenced under this Agreement.
21.4 The award passed by the arbitrator/ arbitrators panel shall be substantiated in writing and the Owners and the Developer shall submit to the arbitrator's / arbitrators panel's award which shall be enforceable in any competent court of law. 21.5 The provisions of this clause shall survive the expiry or termination of this Agreement and project completion. - 4 -
HC-KAR NC: 2025:KHC:41603 CMP No. 254 of 2025
3. The Petitioner had issued a notice on 28.02.2025 invoking the arbitration clause and nominating its arbitrator and requested for such arbitrator to be appointed as a sole arbitrator. The respondents replied to the same on 28.03.2025 contending that there is one other matter which is pending before the National Consumer Dispute Redressal Commission and as such arbitral proceedings would be a multiplicity of proceedings. It is in that background that the petitioner is before this Court seeking for the aforesaid reliefs. 4. The existence of the arbitration clause is not in dispute. The pendency of any other proceedings would not come in the way of exercise or invocation of an arbitration clause. In that view of the matter, I pass the following:
ORDER i) CMP is allowed.
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HC-KAR NC: 2025:KHC:41603 CMP No. 254 of 2025
ii) Sri.Mohammedgouse M. Patil, 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. iii) All contentions are left open. iv) Since the order is passed in the presence of both 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. v) Registry is directed to forward a copy of this
order to the Director, Arbitration and Conciliation Centre for doing the needful as also
directed to return the original Arbitration Agreement which has been filed after following due procedure.
SD/- (SURAJ GOVINDARAJ) JUDGE
PRS List No.: 1 Sl No.: 84