- 1 - HC-KAR NC: 2025:KHC-D:17899 CMP No. 100012 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 10TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA CIVIL MISC PETITION NO. 100012 OF 2025 BETWEEN: M/S. B.S. BIRADAR A REGISTERED PARTNERSHIP FIRM, HAVING ITS REGISTERED OFFICE AT “SHRI BHAGYAVANTI” PLOT NO. 125/126, AISHWARYA NAGAR, BAGALKOTKAR LAYOUT, ASHRAM ROAD, VIJAYAPUR, REPRESENTED BY ITS PARTNER. …PETITIONER (BY SRI S.A. SANDUR, ADVOCATE FOR SRI K.L. PATIL, ADVOCATE) AND: THE MANAGING DIRECTOR HUBBALLI DHARWAD SMART CITY LIMITED, CSS NO. 122/124, HDMC, SAMSKRUTIKA BHAVAN, 1ST FLOOR, NEW COTTON MARKET ROAD, TQ. HUBBALLI, DIST. DHARWAD 580025 …RESPONDENT (BY SRI APRAMEYA K. ADVOCATE) THIS CIVIL MISCELLANEOUS PETITION FILED UNDER SECTION 11 (5) AND (6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT THE ARBITRATOR AS CONTEMPLATED UNDER CLAUSE 4 OF THE SPECIAL CONDITIONS OF CONTRACT UNDER BID DOCUMENT DATED 13.09.2019 VIDE ANNEXURE-A, TO ADJUDICATE THE DISPUTE BETWEEN THE PETITIONER AND RESPONDENT, IN THE INTEREST OF JUSTICE THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING: Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:17899 CMP No. 100012 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. This petition is filed under Section 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 (‘Act’ for short) seeking for the appointment of an arbitrator as contemplated under Clause 4 of the Special Conditions of Contract under the bid document dated 13-09-2019 at Annexure - A, to adjudicate the dispute between the parties. 2. Heard Sri. S.A. Sondur for Sri K.L. Patil, learned counsels appearing for the petitioner and Sri. Aprameya K., learned counsel appearing for the respondents. 3. Facts, in brief, germane are as follows: The respondent floats a tender inviting bids for the purpose of construction work of ‘Smart Street Scape and Junction Improvements of Gokul Road including Operation and maintenance’ in Hubbali City. The petitioner - 3 - HC-KAR NC: 2025:KHC-D:17899 CMP No. 100012 of 2025 participates in the said tender and emerges as the successful bidder, in pursuance of which a letter of acceptance is issued to the petitioner. Upon furnishing of the bank guarantee an agreement comes to be executed between the petitioner and the respondent and a work order comes to be issued in terms of the agreement. Later, certain disputes arise between the parties due to the delay in handing over the site for construction to the petitioner. The petitioner submits several representations to the respondent for handing over the site for commencement of the work and for payment of the costs incurred by the petitioner caused due to the delay, but they lead to no avail. Aggrieved by the inaction of the respondents, the petitioner submits an application before the Deputy Commissioner for settlement of the dispute in terms of the arbitration clause in the Conditions of Contract in the bid document, but no settlement is reached between the parties. The petitioner then files CMP No. 100003 of 2025 before this Court for appointment of an arbitrator which is later withdrawn by the petitioner with liberty to file a fresh petition if necessary. Pursuant to the withdrawal, the - 4 - HC-KAR NC: 2025:KHC-D:17899 CMP No. 100012 of 2025 petitioner issues a notice to the respondent seeking consent for appointment of an arbitrator as proposed by the petitioner in the notice, since the arbitration clause mandating appointment of a sole arbitrator unilaterally is null and void. The respondent issues a reply to the said notice denying their consent for appointment of the proposed arbitrator, insisting upon appointment of an arbitrator solely in terms of the arbitration clause in the Conditions of Contract provided in the bid document. 4. Learned counsel appearing for the petitioner submits that the arbitration clause in the Conditions of Contract is null and void since the sole arbitrator named in the clause is an interested party to the arbitral proceedings and therefore seeks for appointment of an independent arbitrator by this Court, according to Section 11 of the Act. 5. Learned counsel appearing for the respondent submits that they have no objection to the appointment of an independent arbitrator by this Court but insists that the seat of the arbitral proceedings should be at Dharwad. - 5 - HC-KAR NC: 2025:KHC-D:17899 CMP No. 100012 of 2025 6. In that light, I deem it appropriate to appoint Sri. S. S. Balloli, Retired District Judge, as an Arbitrator to enter into the dispute and arbitrate upon the same. 7. For the aforesaid reasons, I pass the following: ORDER i) The petition is disposed of, appointing Sri. S. S. Balloli, Retired District Judge, Shreyas Colony, Halyal Road, Saptapur, Near Dasankoppa Circle, Dharwad- 580008 as the sole arbitrator to enter reference of the disputes between the parties and conduct proceedings at the Arbitration and Conciliation Centre, (Domestic and International), Belagavi, according to the Rules governing the said Arbitration Centre. ii) All contentions inter se parties are left open for adjudication in the arbitration proceedings. - 6 - HC-KAR NC: 2025:KHC-D:17899 CMP No. 100012 of 2025 iii) The Office is directed to communicate this order to the Arbitration and Conciliation Centre and Sri. S. S. Balloli, Retired District Judge, as required under the Arbitration and Conciliation Centre Rules, 2012. Sd/- (M.NAGAPRASANNA) JUDGE KGK LIST NO.: 1 SL NO.: 91