- 1 - NC: 2025:KHC:5659 CMP No. 496 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO. 496 OF 2023 BETWEEN: 1. M/S. GTV ESTATES THE PARTNERSHIP FIRM HAVING ITS PRESENTLY REGISTERED OFFICE AT NO. 7, 9TH MAIN, 2ND BLOCK, JAYANAGAR, BENGALURU - 560 011, REPRESENTED BY ITS PARTNERS VIZ., THE PETITIONERS 2 AND 3 2. MRS. LAKSHMI JAYARAM AGED ABOUT 49 YEARS W/O SRI. L. JAYARAMA NO 7, 9TH MAIN, 2ND BLOCK, JAYANAGAR, BENGALURU - 560 011. RESIDING AT NO. 108 1ST BLOCK, 5TH MAIN ROAD BANASHANKARI 3RD STAGE BENGALURU - 560 085. 3. MRS. C. HANTHA AGED ABOUT 69 YEARS, W/O SRI. C KRISHNAMURTHY, NO.7, 9TH MAIN, 2ND BLOCK, JAYANAGAR, BENGALURU - 560 011. RESIDING AT 1474, 1ST MAIN ROAD, Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:5659 CMP No. 496 of 2023 MUNESHWARA NAGARA, KOLAR, KARNATAKA - 563 101. …PETITIONERS (BY SRI. H.V. DEVARAJU, ADVOCATE) AND: M/S. FIS SOLUTIONS (INDIA) PVT. LTD., COMPANY REGISTERED UNDER THE COMPANIES ACT HAVING ITS REGISTERED OFFICE AT NO. 405(LGF), GRATER KAILASH PART II, NEW DELHI - 110 048, REPRESENTED BY AUTHORIZED SIGNATORY MR. HANUMANTHA RAJ. ALSO AT IT/ITES OPERATIONS OFFICE AT UPPER GROUND FLOOR TO 7TH FLOOR WEST END CENTRE ONE SY. NO. 169/1 SECTOR II, AUNDH, PUNE, MAHARASHTRA - 411 007, REPRESENTED BY AUTHORIZED SIGNATORY MR. HANUMANTHA RAJ. ALSO AT SJR IPARK, E PIP ZONE, 2ND FLOOR, WHITEFIELD MAIN ROAD, BENGALURU - 560 066, REPRESENTED BY AUTHORIZED SIGNATORY MR. HANUMANTHA RAJ. …RESPONDENT (BY SRI. ARJUN RAO, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996, R/W - 3 - NC: 2025:KHC:5659 CMP No. 496 of 2023 RULE 4 OF HIGH COURT OF KARNATAKA ARBITRATION (PROCEEDINGS BEFORE THE COURTS) RULE 2001 PRAYING TO I) TO NOMINATE AND APPOINT DR. JUSTICE K.BHAKTHAVATSALA AS SOLE ARBITRATOR AND / OR IN THE ALTERNATE TREAT HIM AS NOMINEE OF THE PETITIONER AND TO NOMINATE AND APPOINT RESPONDENTS NOMINEE ARBITRATOR IN TERMS OF CLAUSE 11 OF THE LEASE DEED DATED 31/10/2018 (ANNEXURE-A), FOR RESOLUTION OF DISPUTES BETWEEN THE PETITIONER - LESSOR AND THE RESPONDENT-LESSEE , IN THE INTEREST OF JUSTICE AND EQUITY AND ETC., THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking appointment of sole Arbitrator to resolve the dispute and difference between the parties in terms of a Lease Deed dated 31.10.2018. 2. Respondent has tendered appearance through counsel. - 4 - NC: 2025:KHC:5659 CMP No. 496 of 2023 3. This civil miscellaneous petition is filed based on a Lease Deed dated 31.10.2018. Petitioner/landlord is alleging that respondent-Company has committed a breach of contract of lease and that petitioner is entitled to recover a sum of Rs.7,81,01,460/-. Petitioner-landlord also asserts that he is entitled to refundable security deposit of Rs.3,46,22,280/- and recover the balance amount of Rs.4,34,79,180/-. 4. The counsel for the respondent acknowledges the existence of the arbitration clause. However, the primary objection raised is that the petitioner/landlord has executed a deed of acknowledgment, which, according to the respondent, negates the existence of a dispute warranting reference to arbitration. In support of this argument, the respondent relies on the judgment in SBI General Insurance Co. Ltd. v. Krish Spinning, reported in 2024 SCC Online SC 1754. It is contended that the petitioner has acknowledged the debt, and all dues have been paid, leaving no outstanding claims. - 5 - NC: 2025:KHC:5659 CMP No. 496 of 2023 5. After a thorough review of the petition, annexures and supporting documents, this Court is satisfied that the petitioner has met the procedural requirement outlined under Section 11(4) of the Act. 6. In light of the principles laid down by the Apex Court, the respondent requests this Court to direct the Arbitrator to treat the deed of acknowledgment as a preliminary issue and examine its implications, a course of action not opposed by the petitioner. 7. The Arbitrator shall determine whether all dues have been fully and finally settled by treating this as a preliminary issue, in accordance with the law set out in the cited judgment. The petitioner-landlord, however, retains the right to establish that the acknowledgment pertains to the refund of the security deposit. Whether the respondent’s defense justifies framing a preliminary issue shall be decided by the Arbitrator in line with the applicable legal principles. The Arbitrator must evaluate - 6 - NC: 2025:KHC:5659 CMP No. 496 of 2023 the rival contentions of both parties with reference to the recitals in the deed of acknowledgment. 8. With these observations, this Court proceeds to pass the following: ORDER (i) The Civil Miscellaneous Petition is allowed appointing Sri.Justice P.Krishna Bhat, Former Retired High Court Judge as the sole Arbitrator to enter reference of the disputes between the petitioner and the respondent and conduct proceedings at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru, according to the Rules governing the said Arbitration Centre. - 7 - NC: 2025:KHC:5659 CMP No. 496 of 2023 (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 to Sri.Justice P.Krishna Bhat, Former Retired High Court Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE BNV List No.: 3 Sl No.: 19 CT: BHK