- 1 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 51 OF 2024 BETWEEN: ITRIANGLE INFOTECH PRIVATE LIMITED HAVING ITS REGISTERED ADDRESS AT 803/A (803/A-1-3), 76TH A CROSS, WEST OF CHORD ROAD, 6TH BLOCK, RAJAJINAGAR, BENGALURU KARNATAKA - 560 010. REPRESENTED BY ITS AUTHORIZED REPRESENTATIVE LEGAL AND COMPLIANCE OFFICER MS. AAYUSHI RIZWANI. …PETITIONER (BY SRI. H.K. VIKRAM, ADVOCATE) AND: INYNATRA TECHNOLOGIES PRIVATE LIMITED HAVING ITS REGISTERED ADDRESS AT GAT NO. 208-210, 221,224 AND OTHERS, SHINDEWADI, SHIRVAL MAHARASHTRA - 412 801 REPRESENTED BY IS MANAGING DIRECTOR. …RESPONDENT (BY SRI. NAVEEN KUMAR B.C, ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT SOLE ARBITRATOR IN TERMS OF Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 CLAUSE 19.6.2. OF THE AGREEMENT DATED 24.5.2021 AT ANNEXURE B READ WITH SECTION 10(2) AND SECTION 11(6) OF THE ARBITRATION AND CONCILAITION ACT, 1996 FOR ADJUDICATING UPON THE DISPUTE HAVING AROSE BETWEEN THE PETITIONER AND RESPONDENT, AND GRANT SUCH OTHER RELIEF IN FAVOR OF THE PETITIONER AS THE HONBLE COURT MAY DEEM FIT IN INTEREST OF JUSTICE AND EQUITY. 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; "Wherefore, the petitioner prays that this Hon'ble court may be pleased to appoint Sole Arbitrator in terms of Clause A If dated 24-05-2021 19.6.2. of the Agreement at Annexure B read with Section 10(2) and section 11(6) of the Arbitration and Conciliation Act, 1996 for adjudicating upon the dispute having arose between the Petitioner and Respondent, and grant such other relief in favor of the Petitioner as the Hon'ble Court may deem fit in interest of justice and equity." 2. The petitioner and the respondents had entered into Manufacturing Service Agreement on 24.05.2021, which is governed by an Arbitration Clause in terms - 3 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 of Clause 19.6 relating to dispute resolution which is reproduced hereunder for reference; 19.6.1 The Parties shall use good faith to resolve disputes, within twenty (20) business days of notice of such dispute. Such efforts shall include escalation to the corporate officer level of each Party. 19.6.2 If the Parties cannot resolve any such dispute within said twenty (20) business days period, the matter shall be submitted to arbitration for resolution. Arbitration will be governed as per the Arbitration Act of the Indian laws. 3. The Governing law and jurisdiction as contained in Clause 19.7 which is reproduced hereunder for reference; "19.7 Governing Law and jurisdiction: This agreement and interpretation of its terms shall be governed by the laws prevailing in India. The court of jurisdiction shall be the courts of Bangalore only." 4. There being certain disputes between the parties, the petitioner invoked the Arbitration Clause and issued a notice on 18.09.2023 nominating the Arbitrator. - 4 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 Notice having been served on the respondents, the respondents have replied denying all the disputes raised and contending that they are not agreeable for appointment of the Arbitrator as indicated therein and particularly, stating that the proceedings pending under Section 138 r/w Section 141 of the Negotiable Instruments Act, 1881 and the criminal proceedings being pending, Arbitration cannot be resorted. 5. In that background, the petitioner has approached this Court seeking for the aforesaid relief. 6. Notice having been issued, respondents had entered appearance through a counsel. However, the said counsel has not been appearing in the matter, as such, this Court vide order dated 07.11.2025 had observed that if none were to appear for the respondents on the next date of hearing ie., today, the petition would be taken up for consideration on the submission made by learned counsel for the - 5 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 petitioner. In that background, the petition is taken up. 7. Perusal of the documents indicates that there is an agreement titled as Manufacturing Services Agreement entered into between the petitioner and the respondent. The said agreement requires any dispute to be resolved by way of Arbitration, jurisdiction being that of Bengaluru, invocation of the arbitration clause having been done properly and the notice having been issued on 18.09.2023, the petitioner having nominated its Arbitrator, the respondents have denied the said invocation on the ground that there are criminal proceedings pending under Section 138 of the N.I.Act and therefore, the matter cannot be arbitrated. 8. Though there is no representation on the part of the respondents, at the most the dispute or the difference of the respondents could be as per the - 6 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 reply notice issued, I am unable to agree with the contentions raised by the respondents in their reply that the cheques issued having bounced and criminal proceedings having been filed, Arbitration proceedings cannot be initiated, inasmuch as, the criminal proceedings under Section 138 of the N.I.Act is for punishment on account of dishonour of cheque, where as proceedings in the present arbitration is for recovery of money, Hence, both the proceedings can simultaneously be prosecuted by the petitioner. In that background, I pass the following; ORDER i. Civil Miscellaneous Petition is allowed. ii. Hon’ble Sri. Justice B.A.Patil, former Judge of this Court is appointed as a sole arbitrator in all the aforesaid petitions to arbitrate the dispute between the parties under the aegis of the Arbitration Centre attached to this Court. iii. All contentions including that of arbitrability are left open to be decided by the learned arbitrator. - 7 - HC-KAR NC: 2025:KHC:48213 CMP No. 51 of 2024 iv. Since the order is passed in the presence of both the counsel, they shall appear before the Director, Arbitration and Conciliation Centre on 04.12.2025 at 2.30 p.m. v. Registry is directed to forward a copy of this order to the Director, Arbitration and Conciliation Centre for doing the needful and also to return the originals / certified copies of the documents filed to the counsel for the petitioner after complying with the due formalities. SD/- (SURAJ GOVINDARAJ) JUDGE GH List No.: 1 Sl No.: 22