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2025 DAILYLAW 55898 (KAR)

M/S PURAVANKARA LIMITED v. M.B. BASAVARAJ

CMP/229/2024 · 2025-02-14

Sachin Shankar Magadum

body2025

Judgment text

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- 1 - NC: 2025:KHC:6817 CMP No. 229 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM CIVIL MISC. PETITION NO. 229 OF 2024 BETWEEN: 1. M/S PURAVANKARA LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIS ACT 1956 HAVING ITS REGISTERED OFFICE AT NO. 130/2, ULSOOR ROAD BANGALORE-560 042. REP BY ITS AUTHORIZED REPRESENTATIVE KEERTHI .B.M …PETITIONER (BY SRI. JOSEPH ANTHONY, ADVOCATE) AND: 1. M.B. BASAVARAJ S/O M. BASAVANA GOWDA AGED ABOUT 54 YEARS R/AT NO. 46, 2ND FLOOR BELLARY MAIN ROAD ABOVE SUB-REGISTRAR OFFICE GANGANAGAR, BANGALORE-560 032. …RESPONDENT (NOTICE SERVED ON THE RESPONDENTS) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT A SOLE ARBITRATOR FOR ADJUDICATION OF DISPUTES THAT HAVE ARISEN BETWEEN Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:6817 CMP No. 229 of 2024 THE PETITIONER AND THE RESPONDENT IN TERM OF CLAUSE 8(H) OF THE MOU DATED SEPTEMBER 18, 2021 (ANNEXURE A), 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 SACHIN SHANKAR MAGADUM ORAL ORDER This Civil Miscellaneous petition is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 (for short "the Act") seeking appointment of a sole arbitrator for adjudication of disputes that have arisen between the petitioner and respondent in terms of Clause 8(h) of the memorandum of understanding dated 18.9.2021. 2. Respondent is served and there is no contest to the petition. 3. Petitioner, relying on the Memorandum of Understanding (MOU), asserts that the respondent misrepresented himself as the authorized agreement holder for the previous owners of the properties specified - 3 - NC: 2025:KHC:6817 CMP No. 229 of 2024 in the MOU. This alleged representation was the primary inducement for the petitioner to enter into the MOU, with the objective of obtaining a valid title over multiple parcels of land spanning several survey numbers as detailed in the agreement. 4. The petitioner further contends that, in pursuance of the MOU dated 18.09.2021, an advance consideration of Rs. 10 lakhs was paid to the respondent. Despite this payment and the obligations set forth in the MOU, the respondent has failed to fulfill his contractual commitments. Multiple notices were issued to the respondent, calling upon him to adhere to the terms and conditions stipulated in the MOU. However, the respondent has neglected or refused to comply with his obligations. 5. Additionally, in the notices sent, the petitioner clearly expressed his readiness and willingness to proceed with the transaction as per the agreed terms. However, due to the respondent’s inaction and failure to respond, the petitioner was left with no alternative but to invoke the - 4 - NC: 2025:KHC:6817 CMP No. 229 of 2024 arbitration clause embedded in Clause 21 of the Arbitration and Conciliation Act, 1996. Accordingly, a notice was issued nominating a sole arbitrator to adjudicate and resolve the dispute arising from the MOU. 6. In light of the respondent’s continued silence and failure to engage in the arbitration process, the petitioner is constrained to file the present Civil Miscellaneous Petition, seeking appropriate relief and intervention from this Court. 7. This Court has thoroughly examined the annexures annexed to this petition and has also given its anxious consideration to the arbitration clause indicated in the MOU. This Court on examining the MOU is satisfied in regard to the existence of the arbitration clause. This Court is of the view that the petitioner has satisfied the mandate provided under Section 11(4) of the Act, 1996. Since, there is no contest, this Court proceeds to pass the following: - 5 - NC: 2025:KHC:6817 CMP No. 229 of 2024 ORDER (i) The Civil Miscellaneous Petition is allowed appointing Shri. Justice Anand Byra Reddy, Former Judge, High Court of Karnataka, as the sole Arbitrator to enter reference of the disputes between the petitioner and the respondents and conduct proceedings at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru, 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 to Shri. Justice Anand Byra Reddy, Former Judge, High Court of Karnataka, as required under the Arbitration and Conciliation Centre Rules, 2012. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE ALB List No.: 3 Sl No.: 15