- 1 - HC-KAR NC: 2025:KHC:35641 CMP No. 313 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE E.S.INDIRESH CIVIL MISC. PETITION NO.313 OF 2025 BETWEEN: 1. MR. ALANKARA PANDIAN SANTHANA SWAMY S/O. SANTHANASWAMY, AGED ABOUT 48 YEARS, RESIDING AT, NO.6, 9TH CROSS, 3RD MAIN, KALAPPA LAYOUT, BASAVANAGAR, MARATHAHALLI POST, BENGALURU - 560037. …PETITIONER (BY SRI. ROHAN VEERANNA TIGADI, ADVOCATE) AND: 1. M/S. SRI SAI FOOD ZONE LLP C/O. MANJUNATH M, FLAT NO. A-2201, VAISHNAVI TERRACES, 4TH CROSS, DOLLARS COLONY, JP NAGAR, BENGALURU -560 078 REPRESENTED BY MANJUNATH M. 2. MR. MANJUNATH M., S/O. MARAPPA, RESIDING AT FLAT NO. A-2201, VAISHNAVI TERRACES, 4TH CROSS, DOLLARS COLONY, J.P. NAGAR, BENGALURU - 560 078. Digitally signed by SHARMA ANAND CHAYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35641 CMP No. 313 of 2025 3. MRS. SHALINI M., W/O. MANJUNATH, RESIDING AT FLAT NO. A-2201, VAISHNAVI TERRACES, 4TH CROSS, DOLLARS COLONY, J.P. NAGAR, BENGALURU - 560 078. 4. MR. KUSHAL MANJUNATH, S/O. MANJUNATH M, RESIDING AT FLAT NO. A-2201, VAISHNAVI TERRACES, 4TH CROSS, DOLLARS COLONY, J.P. NAGAR, BENGALURU - 560 078. 5. M/S SHALINI ARTSS A SOLE PROPRIETORSHIP OF SHALINI M. RESIDING AT FLAT NO. A-2201, VAISHNAVI TERRACES, 4TH CROSS, DOLLARS COLONY, J.P. NAGAR, BENGALURU - 560 078. (REPRESENTED BY POWER OF ATTORNEY HOLDER MANJUANTH). …RESPONDENTS (BY SRI. GOPI PRAKASH AND SRI. PRASANNA S. HEGDE, ADVOCATE FOR C/R1 TO R5) THIS CMP IS FILED UNDER SECTION 11(5) OF ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT JUSTICE V. JAGGANATHAN (RETIRED JUDGE, HON'BLE HIGH COURT OF KARNATAKA) OR ANY OTHER RETIRED JUDGE TO ACT AS SOLE ARBITRATOR AND REFER THE DISPUTES BETWEEN THE PARTIES TO ARBITRATION, IN - 3 - HC-KAR NC: 2025:KHC:35641 CMP No. 313 of 2025 TERMS OF CLAUSE 14 OF THE 2ND LOAN REPAYMENT AGREEMENT DATED 26TH SEPTEMBER, 2024 (ANNEXURE B). THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE E.S.INDIRESH ORAL ORDER 1. Heard learned counsel appearing for the parties. 2. This petition is filed under Section 11(6) of the Arbitration and Conciliation Act 1996, praying to appoint a retired judge to act as sole arbitrator and to refer the disputes between the parties to arbitration, in terms of clause 14 of the second loan repayment Agreement dated 26.09.2024 (Annexure-B). 3. It is the case of the petitioner that, the petitioner has entered into a second loan repayment Agreement dated 26.09.2024 (Annexure-B) and Clause 14 of the said Agreement provides for resolution of the dispute through Arbitration proceedings. In this regard, learned counsel for the petitioner places reliance on the judgment of the Hon'ble Supreme Court in the case of MANAGING DIRECTOR BIHAR STATE FOOD AND - 4 - HC-KAR NC: 2025:KHC:35641 CMP No. 313 of 2025 CIVIL SUPPLY CORPORATION LIMITED AND ANOTHER Vs. SANJAY KUMAR AND OTHERS reported in 2025 SCC OnLine SC 1604 and by referring to paragraph 2.1 and 27 to 29 therein, it is argued by the learned counsel appearing for the petitioner that, even if there is an element of fraud as alleged by the parties, same has to be considered by the Arbitrator in terms of Clause 14 of the Agreement at Annexure-B. 4. Per contra, learned counsel appearing for the respondents submitted that the basis for the appointment of Arbitrator in terms of Annexure-B is as per the joint Venture Agreement dated 03.11.2020 (Annexure-B to the statement of objections). 5. It is argued by the learned counsel appearing for the respondents that, if the petitioner is having any grievance in so far as respondent No.5 is concerned in terms of the Joint Venture Agreement dated 03.11.2020, it is open for the petitioner to proceed against respondent No.5 and therefore, respondent Nos.1 to 4 have to be deleted from the proceedings. 6. In the light of the submissions made by the learned counsel appearing for the parties, on careful examination of the - 5 - HC-KAR NC: 2025:KHC:35641 CMP No. 313 of 2025 petition papers would indicate that as per Clause 14 of the Agreement at Annexure-B, makes it clear that, if there is any difference arising between the parties same has to be resolved by way of arbitration. In this regard, learned counsel appearing for the respondents referred to the Joint Venture Agreement dated 03.11.2020 and submitted that, the said agreement is also part of the Agreement at Annexure-B wherein, page 2 of the said Agreement refers to the said joint venture agreement dated 03.11.2020. 7. In that view of the matter, following the declaration of law made by the Hon'ble Supreme Court referred to above, I am of the view that, even if there is an element of fraud alleged between the parties, in the facts and circumstances of the case, same has to be considered by the learned Arbitrator, while passing the Award. In that view of the matter, I find force in the submission made by the learned counsel for the petitioner. 8. Accordingly, Hon'ble Shri. Justice Ajit J. Gunjal, former Judge of this Court is appointed as the Arbitrator to resolve the dispute between the parties herein. - 6 - HC-KAR NC: 2025:KHC:35641 CMP No. 313 of 2025 9. In order to avoid delay in the matter, the parties are directed to appear before the Arbitration and Conciliation Centre, Race Course Road, Bengaluru, on 14.10.2025 at 11.00 a.m. On appearance of the parties, learned Arbitrator is requested to dispose of the matter. 10. The Registry is directed to communicate this order to the Arbitration and Conciliation Centre, Bengaluru and also to Hon'ble Shri. Justice Ajit J. Gunjal, former Judge of this Court, forthwith. 11. Accordingly, this Civil Miscellaneous Petition stands disposed of. Sd/- (E.S.INDIRESH) JUDGE sac List No.: 1 Sl No.: 18