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2025 DAILYLAW 81281 (KAR)

M/S. PRADEEP CONSTRUCTION COMPANY v. SHIVAMOGGA SMART CITY LTD.,

CMP/27/2025 · 2025-12-05

Suraj Govindaraj

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:51538 CMP No. 27 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 27 OF 2025 BETWEEN: M/S. PRADEEP CONSTRUCTION COMPANY REPRESENTED BY ITS PARTNER SRI JAGANNATH SHETTY ENGINEERING'S AND CONTRACTORS, AGED ABOUT 56 YEARS, ADMIN OFFICE NO.4, VRINDAVAN APARTMENT, OPP BUB COLLEGE, VIDYANAGAR HUBLI - 580021 …PETITIONER (BY SRI. HARISCHANDRA REDDY P, ADVOCATE) AND: 1. SHIVAMOGGA SMART CITY LTD., REPRESENTED BY ITS THE MANAGING DIRECTOR SHIVAMOGGA SMART CITY LTD 1ST FLOOR, CORPORATION BUILDING BLOCK, S N MARKET, NEHRU ROAD, SHIVAMOGGA - 577201 2. THE EXECUTIVE ENGINEER SHIVAMOGGA SMART CITY LTD., SHIVAMOGGA - 577201 3. THE INSTITUTE OF ENGINEERS KARNATAKA STATE CENTRE, NO 03, DR B R AMBEDKAR VEEDHI OPP INDIAN EXPRESS BUILDING BENGALURU, KARNATAKA - 560001 …RESPONDENTS (BY SRI. SHOWRI H R, ADVOCATE FOR R1) Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:51538 CMP No. 27 of 2025 THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5), (6) (C) AND (8) R/W SEC.12 OF ARBITRATION AND CONCILIATION ACT 1996., PRAYING (i) TO PASS AN APPROPRIATE ORDER FOR APPOINTMENT OF INDEPENDENT AND IMPARTIAL SOLE ARBITRATOR AS PER THE PETITIONER REQUESTS UNDER THE PROVISIONS OF SECTION 11(6) SUB-SECTION (c) OF THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2019 TO ADJUDICATE THE DISPUTES/ CLAIMS BETWEEN THE PARTIES FOR THE WORK OF DEVELOPMENT OF CORPORATION PARK (PARK-17) IN SHIVAMOGGA CITY AGREEMENT NO.55/9.03.2020 (ANNEXURE - C & A). (ii) TO PASS AN APPROPRIATE ORDER AS PER THE CLAUSE NO.4.1 OF SCC AND ALSO (AMENDMENT) ACT, 2019 AS THE APPOINTING AUTHORITY RESPONDENT NO.3, INSTITUTE OF ENGINEERS, BANGALORE FAILED TO APPOINT SOLE ARBITRATOR, BY APPOINTING INDEPENDENT AND IMPARTIAL SOLE ARBITRATOR UNDER SEC.11(8) OF THE ACT FOR SETTLEMENT OF DISPUTES/CLAIMS BETWEEN THE PARTIES AS PER THE SPECIAL CONDITIONS OF CONTRACT. 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. To pass an appropriate order for appointment of independent and impartial sole arbitrator as per the petitioner requests under the provisions of section 11(6) sub-section (c) of the arbitration and conciliation (amendment) act, 2019 to adjudicate the disputes/ claims between the parties for the work of development of corporation park (park-17) in Shivamogga city agreement no.55/9.03.2020 (Annexure - C & A). b. To pass an appropriate order as per the clause No.4.1 of SCC and also (amendment) act, 2019 as the appointing authority respondent No.3, institute of engineers, Bangalore failed to appoint sole - 3 - HC-KAR NC: 2025:KHC:51538 CMP No. 27 of 2025 arbitrator, by appointing independent and impartial sole arbitrator under sec.11(8) of the act for settlement of disputes/claims between the parties as per the special conditions of contract. c. Pass such other orders as the Hon'ble Court deems fit in the interest of justice and equity. d. Make any further scheme for dealing with the matter as contemplated under Section 11 of the Arbitration and Conciliation (Amendment) act 2019. 2. A notice of the tender had been issued by the respondent which is governed by an arbitration Clause in terms of Clause 4.1, which is reproduced hereunder for easy reference: “The procedure for arbitration shall be as follows: (a) In case of dispute or difference arising between the Employer and the Contractor relating to any matter arising out of or connected with this agreement it shall be settled in accordance with the Arbitration and Conciliation Act, 1996. The disputes or differences shall be referred to a Sole Arbitrator. The Sole Arbitrator shall be appointed by agreement between the parties. If the parties fail to reach such agreement/consensus then the sole arbitrator shall be appointed by the Appointing Authority, namely, Institute of Engineers, Bangalore. (b) Arbitration proceedings shall be held at Bangalore. Karnataka, India. (c) The cost and expenses of arbitration proceedings will be paid as determined by the Arbitrator. However the expenses incurred by each party in connection with the preparation, presentation, etc., shall be borne by each party itself. - 4 - HC-KAR NC: 2025:KHC:51538 CMP No. 27 of 2025 (d) Performance under the contract shall continue during the arbitration proceedings and payments due the Contractor by the Employer shall not be withheld, unless they are the subject matter of the arbitration proceedings. 3. A perusal of the aforesaid clause would indicate that the arbitrator has to be appointed by the Institute of Engineers, Bangalore. When this is pointed out to the counsel for the petitioner, the petitioner seeks permission to withdraw the above petition with liberty to approach the Institute of Engineers for appointment of an arbitrator by following the due procedure. 4. Reserving liberty to the petitioner to approach the Institute of Engineers, the petition stands disposed. Petitioner shall be entitled to the benefit of Section 14 of the Limitation Act for the time spent in prosecuting the above petition. SD/- (SURAJ GOVINDARAJ) JUDGE PRS List No.: 1 Sl No.: 51