- 1 - NC: 2025:KHC:6814 CMP No. 341 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. 341 OF 2024 BETWEEN: 1. MR. M. NAYAZ AHMED S/O LATE MAQBOOL AHMED AGED ABOUT 53 YEARS R/AT NO. 28, SIRSI ROAD CHAMARAJPET BENGALURU-560 018. …PETITIONER (BY SRI. S. RAJASHEKAR, ADVOCATE) AND: 1. M/S ARYEN INDUSTRIES A PARTNERSHIP FIRM HAVING ITS REGISTERED OFFICE AT NO.21/1 MOHAMMEDAN BLOCK, 4TH CROSS CHAMARAJPET BENGALURU-560 018. REP BY ITS PARTNER SRI. M. RIYAR AHMED REGISTERED UNDER PARTNESHIP ACT, 1932. 2. SRI. M.RIYAZ AHMED S/O LATE MAQBOOL AHMED AGED ABOUT 59 YEARS R/AT NO. 127 19TH 'B' CROSS 3RD BLOCK JAYANAGAR Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATKA - 2 - NC: 2025:KHC:6814 CMP No. 341 of 2024 BENGALURU-560 011. ONE OF THE PARTNER OF R1. …RESPONDENTS (BY SRI. MOHAMMED SHAFIULLA, ADVOCATE AND SRI. VINOD KUMAR .E, ADVOCATE) THIS CIVIL MISC. PETITION, IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO APPOINT AN ARBITROTOR TO ADJUDICATE THE DISPUTE BETWEEN THE PARTIES AND ALLOW THE SAID ARBITRATOR TO ENTER UPON THE REFERENCE AND ADJUDICATE THE DISPUTE AND DIFFERENCES BETWEEN THE PARTIES ARISING OUT OF THE PARTNERSHIP DEED DATED 01.01.2025 AS PER CLAUSE NO.17 OF THE SAID PARTNERSHI DEED VIDE ANNEXURE-A. 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, 1996") seeking appointment of a sole arbitrator to adjudicate the dispute between the parties arising out of the partnership deed dated 1.1.2015 as per Clause No.17 of the said deed. 2. Petitioner, invoking Section 21 of the Arbitration and Conciliation Act, 1996, issued a legal notice to - 3 - NC: 2025:KHC:6814 CMP No. 341 of 2024 respondent No.2, raising serious allegations of financial mismanagement and breach of fiduciary duty. The petitioner contends that respondent No.2 has siphoned off substantial funds belonging to respondent No.1, the partnership firm, for personal use without maintaining proper accounts or furnishing financial statements to the petitioner. Despite repeated requests and efforts made by the petitioner to seek clarity on the financial status of the firm, respondent No.2 has allegedly failed to provide any transparency or accountability. The petitioner is particularly aggrieved by the non-payment of his rightful share in the firm’s profits for several years, which he claims to be entitled to under Clause 7 of the partnership deed, granting him a 40% share in the profits and losses of the firm. Frustrated by the continued denial of his legitimate dues and lack of financial disclosures, the petitioner, as a last resort, invoked the arbitration clause stipulated under Clause 17 of the partnership deed by issuing a formal notice, seeking resolution of the disputes through arbitration. - 4 - NC: 2025:KHC:6814 CMP No. 341 of 2024 3. Since there is no response, the present civil miscellaneous petition is filed. 4. This Court has carefully examined the annexures annexed along with the civil miscellaneous petition. The partnership deed evidenced at Annexure-A provides for arbitration in the event there is dispute between the partners of respondent No.1/firm. On careful examination of the documents, this Court is satisfied that the petitioner has fulfilled the mandate provided under Section 11(4) of the Act, 1996. 5. For the foregoing reasons, this Court proceeds to pass the following: ORDER (i) The Civil Miscellaneous petition is allowed appointing Dr. S.B.N. Prakash, Retired District 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 - 5 - NC: 2025:KHC:6814 CMP No. 341 of 2024 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 Dr. S.B.N. Prakash, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE ALB List No.: 3 Sl No.: 23