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2025 DAILYLAW 68123 (KAR)

METRO ATHLEISURE LIMITED v. AUGUST PURPLE SERVICES PRIVATE LIMITED

CMP/431/2025 · 2025-10-24

Suraj Govindaraj

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:42229 CMP No. 431 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 431 OF 2025 BETWEEN: METRO ATHLEISURE LIMITED, (FORMERLY KNOWN AS CRAVATEX BRANDS LIMITED), HAVING ITS REGISTERED OFFICE AT: PRESENTLY AT 401, ZILLION, 4TH FLOOR, LBS MARG AND CST JUNCTION, KURLA (W), MUMBAI 400 700. REP. BY ITS SENIOR VICE PRESIDENT - LEGAL AND COMPANY SECRETARY MS. DEEPA SOOD. …PETITIONER (BY SRI VEDANTH ANAND, ADVOCATE) AND: AUGUST PURPLE SERVICES PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT: PRESENTLY AT 701 TO 714, TOWER C, 7TH FLOOR, DIAMOND DISTRICT, AIRPORT ROAD, KODIHALLI, BENGALURU-560 008. REP. BY ITS AUTHORISED REPRESENTATIVE. …RESPONDENT (BY SRI PRASANTH V G, ADVOCATE FOR R-1) THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996., PRAYING TO APPOINT A SOLE ARBITRATOR TO ARBITRATE THE DISPUTES RAISED BY THE PETITIONER AGAINST THE RESPONDENT IN RESPECT OF THE RESPONDENTS BREACH OF ITS OBLIGATIONS UNDER THE AGREEMENT DATED 1ST AUGUST 2018, IN ACCORDANCE WITH CLAUSE 17 OF THE AGREEMENT DATED 1 AUGUST 2018 (PRODUCED AS ANNEXURE - A). Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:42229 CMP No. 431 of 2025 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 arbitrate the disputes raised by the Petitioner against the Respondent in respect of the Respondent's breach of its obligations under the Agreement dated 01 August 2018, in accordance with Clause 17 of the Agreement dated 01 August 2018 (produced as Annexure-'A'); b. Grant costs of this petition to the Petitioner; c. Grant such other and further reliefs as this Hon'b;e Court deems fit in the circumstances of the case and in the interests of justice and equity." 2. The petitioner and respondent had entered into an agreement dated 01.08.2018 which is governed by an arbitration clause in terms of Clause 17 thereof, which is reproduced hereunder for easy reference; 17. Dispute Resolution Any dispute arising out of the terms of this Agreement shall be mutually settled between the parties failing which by arbitration in accordance with the (Indian) Arbitration and Conciliation Act 1996 at Bangalore. The place of arbitration shall be Bangalore and Subject to - 3 - HC-KAR NC: 2025:KHC:42229 CMP No. 431 of 2025 arbitration process, courts at Bangalore shall have exclusive jurisdiction. 3. Subsequently reconciliation have been carried out, respondent issued a Reconciliation Settlement Letter dated 30.01.2024 under which the respondent had acknowledged dues of certain amounts. Thereafter, respondent is alleged to have sought for certain time to make payment of the amounts in installments, alleging that the said amount has not been paid the petitioner had invoked the arbitration Clause vide its notice dated 13.01.2025 and nominated its arbitrator. 4. Thereafter, there being certain correspondence between the petitioner and respondent, respondent seeking for installment to make payment of monies one installment was made payment of, the remaining not have been paid, the petitioner is before this Court seeking for the aforesaid reliefs. 5. Learned counsel for the respondent seeks to submit that the agreement which is governed by the - 4 - HC-KAR NC: 2025:KHC:42229 CMP No. 431 of 2025 arbitration Clause as spent itself inasmuch as it is a term agreement which expired after a period of 5 years and as such, the arbitration clause cannot be invoked by the petitioner today. 6. I am unable to accept the said submission since the arbitration Clause would continue to be in operation for adjudication of all the disputes between the parties under the said agreement. The petitioner having invoked the arbitration Clause it is but required that the disputes be adjudicated by way of arbitration. In that view of the matter, I pass the following; ORDER i. CMP is allowed. ii. Sri. Virupaxappa H. Sambrani, a former District Judge of the District Judiciary, State of Karnataka is appointed as a sole arbitrator to arbitrate the dispute between the parties under the aegis of the Arbitration Centre attached to this Court. - 5 - HC-KAR NC: 2025:KHC:42229 CMP No. 431 of 2025 iii. Registry is directed to forward a copy of this order to the Director, Arbitration & Conciliation Centre for doing the needful. iv. Since the order is passed in the presence of both the counsels, the counsels are directed to appear before the Director, Arbitration & Conciliation Centre without requirement of any notice at 2.30 p.m. on 13.11.2025. v. All contentions are left open. SD/- (SURAJ GOVINDARAJ) JUDGE SR List No.: 1 Sl No.: 95