- 1 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 573 OF 2025 BETWEEN: CATERPILLAR FINANCIAL SERVICES INDIA PRIVATE LIMITED A COMPANY INCORPORATED AND REGISTERED UNDER THE COMPANIES ACT, 1956. HAVING ITS REGISTERED OFFICE AT GROUND FLOOR, CRESCENT 1, PRESTIGE SHANTINIKETAN WHITEFIELD, HOODI, BENGALURU, KARNATAKA-560048 REPRESENTED BY ITS AUTHORISED SIGNATORY MR. JOCKINS RC …PETITIONER (BY SRI. THAKUR RISHABHA RAJ, ADVOCATE) AND: 1. SRI BUDDHA ENGINEERING AND CONSTRUCTIONS PVT LTD., HOUSE NO.87-1388- N, SHESHADRI NAGAR HOUSING BOARD COLONY KURNOOL, ANDHRA PRADESH-518002 2. KODITHAM RAJASEKHAR 87-1388-N, SHESHADRI NAGAR NEAR NANDYAL CHECK POST, SHESHADRI NAGAR KURNOOL, ANDHRA PRADESH-518002 3. KODITHAM VARA LAKSHMI 87-1388-N, NDK ROAD, NDL CHEK POST, SHESHADRI NAGAR KURNOOL, ANDHRA PRADESH-518002. …RESPONDENTS (RESPONDENT NOS.1-3 SERVED) THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996., PRAYING TO Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 APPOINT A SOLE ARBITRATOR TO RESOLVE THE DISPUTES AND DIFFERENCES AMONGST THE PARTIES IN TERMS OF CLAUSE 21 OF THE LOAN AND SECURITY AGREEMENT DATED 16.12.2024 BEARING NO. 808-70004699 AT ANNEXURE B EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS. THIS CMP, 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 resolve the disputes and differences amongst the parties in terms of clause 21 of the loan and security agreement dated 16.12.2024 bearing No. 808-70004699 at Annexure B executed between the petitioner and the respondents. b. Grant such other order/s that this Hon'ble Court may deem fit on the facts and in the circumstances of the case, in the interest of justice and equity. 2. The petitioner and the respondent had entered into a Loan and Security agreement on 16.12.2024 which is governed by an arbitration clause in terms of clause 21 which is reproduced hereunder for easy reference: - 3 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 21. GOVERNING LAW AND JURISDICTION 21.1 This Agreement shall be governed by the laws of the Republic of India. 21.2 Any dispute/s arising out of or in connection with this contract, including any question regarding its existence, validity, interpretation, or termination thereof, shall be referred to and finally resolved by arbitration of a sole Arbitrator as per the provisions of the Arbitration & Conciliation Act, 1996. The parties by mutual agreement have appointed and named the sole Arbitrator who shall be Mr. Sri. D.R.Venkatasudarshan, Dist. & Sessions Judge (Retd), Bengaluru. The sole Arbitrator's consent is also obtained before appointment and therefore he can enter upon the reference the moment one of the parties approach him for interim measures/ final award. 21.3 It is further agreed that the in the event of the above jointly agreed/nominated sole Arbitrator not being available for any reason or in the event of any disability preventing the agreed Arbitrator from commencing or continuing the arbitration proceedings, it is hereby jointly agreed that the nominated substitute Arbitrator shall be Mr. S.R. Somashekhar, Dist. & Sessions Judge (Retd), Bengaluru, who will be entitled to commence and/or continue arbitration proceedings as a regular Arbitrator and also pass interim, ad-interim and/or ex-parte orders as indicated above. 21.4 As the parties have appointed and named the Arbitrator under this agreement by mutual consultation, the aggrieved party shall be entitled to seek interim measures contemplated under Section 9 of the Arbitration & Conciliation Act, 1996, before the Arbitrator by invoking Section 17 of the Arbitration & Conciliation Act, 1996. In the event of urgency and/or if delay in issuing notice would frustrate the very purpose of seeking the interim measure/s, it is agreed that the sole Arbitrator shall be entitled to pass an ex-parte, ad- - 4 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 interim order/s as may be just, expedient and necessary. 21.5 Only the High Court of Karnataka at Bengaluru shall have exclusive jurisdiction in relation to the appealable interim order/s passed during the Arbitration proceedings and the Commercial Court established at Bengaluru City shall have exclusive jurisdiction to the challenge the Arbitration Award, whether interim or final, that may be passed by the sole Arbitrator. 21.6 The seat of Arbitration shall be Bengaluru City at Basavanagudi Arbitration Center, Vaibhav Apartments, 85/5, First Floor, Gandhi Bazaar Main Rd, opp. HSBC Bank, Basavanagudi, Bengaluru, Karnataka 560004. 21.7 The proceedings shall be in English language." 21.8 Notwithstanding Section 21.2 above, we reserve the right to, in our sole option, also commence legal proceedings and to enforce the Security through proceedings before Indian Courts under the provisions of the Indian Civil Procedure Code or any other law for the time being in force or enforce Security under Securitization and Reconstruction of Financial Unit and Enforcement of Security Interest Act, 2002 ("SARFAESI Act") or proceed to recover dues from the Obligors under the SARFAESI Act, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and/or any other applicable law. 21.9 Any suit, petition, reference or other filing permitted, including those required to be made pursuant to the Arbitration and Conciliation Act, 1996 or under any other Act in respect of the matters arising out of the Loan Documents shall be, at the discretion of the Lender be instituted only in the competent courts of Bengaluru. The submission to the jurisdiction of the courts at Bengaluru is for the benefit of the Lender only and - 5 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 shall not be construed so as to limit the right of the Lender to take proceedings in any other court of competent jurisdiction, nor shall the taking of proceedings by the Lender in any one or more jurisdictions preclude the taking of proceedings by the Lender in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law. 3. Disputes having arisen between the parties, the petitioner issued a notice on 8.08.2025 calling upon the respondent to make payment of the amounts, failing which an arbitrator would be appointed on account of invocation of arbitration clause by the respondent. Though notice was served on the respondent, no reply or concurrence having been furnished, the petitioner approached this Court seeking for the aforesaid reliefs. 4. This court issued notice to respondent, who, though served, has chosen to remain unrepresented. 5. A perusal of the agreement indicates that the same is governed by an arbitration clause and arbitration to be carried out by named arbitrator therein which has - 6 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 been agreed between the parties. Though the venue is stated to be Basavanagudi Arbitration Centre, I am of the considered opinion that the said venue is not acceptable since there is no such recognition to the Basavanagudi Arbitration Centre, as such, the venue to be Arbitration and Conciliation Centre attached to this Court. As such, I pass the following: ORDER i. CMP is allowed. ii. Shri.D.R.Venkatasudarshan, former District Judge of the District Judiciary is appointed as a sole arbitrator to arbitrate the dispute between the parties under the aegis of the Arbitration Centre attached to this Court. 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 learned counsel for the petitioner, the counsel is directed to appear before the Director, Arbitration & Conciliation Centre without requirement of any notice on 12.01.2026 at 2.30 p.m. v. All contentions are kept open. - 7 - HC-KAR NC: 2025:KHC:53028 CMP No. 573 of 2025 vi. Registry is directed to return the original and/or certified copies, if produced, to the respective parties who have produced it/them by following due procedure. SD/- (SURAJ GOVINDARAJ) JUDGE LN List No.: 1 Sl No.: 79