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2025 DAILYLAW 91828 (KAR)

SRI NAVARATHAN DILIP KUMAR HUF v. M/S. MUTHA FOUNDATION (R)

CMP/72/2025 · 2025-10-31

Suraj Govindaraj

Public Interest Litigationbody2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:43886 CMP No. 72 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ CIVIL MISC. PETITION NO. 72 OF 2025 BETWEEN: SRI NAVARATHAN DILIP KUMAR HUF REPRESENTED BY ITS KARTHA NAVARATHAN DILIP KUMAR, AGED ABOUT 43 YEARS, S/O. LATE. SRI. N. DILIP KUMAR, R/AT NO.80/1, GOVINDAPPA ROAD, BASAVANAGUDI, BENGALURU 560 004. …PETITIONER (BY SRI. VENKATESH R BHAGAT., ADVOCATE) AND: M/S. MUTHA FOUNDATION (R) A TRUST REGISTERED UNDER THE PROVISIONS OF THE INDIAN TRUST ACT, REGISTERED OFFICE AT NO.60, PILLAIYAR KOLL STREET, ASHOKNAGAR, BENGALURU 560 025. REP. BY ITS AUTHORIZED TRUSTEE, SRI. DARSHAN MUTHA. …RESPONDENT (BY SRI. MANU N.P., ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF 1996 ARBITRATION AND CONCILIATION ACT., R/W NOTIFICATION NO.LCA/I/402/1996 DATED 13.11.1996 OF THE HIGH COURT OF KARNATAKA PRAYING THAT TO APPOINT ARBITRATOR SRI. A.P. MURARE, RETIRED DISTRICT JUDGE OR ANY OTHER RETIRED DISTRICT JUDGE, AS SOLE ARBITRATOR TO ADJUDICATE THE DISPUTE ARISING OUT OF THE LEASE DEED DATED 31.03.2022 IN Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:43886 CMP No. 72 of 2025 THE ABOVE MATTER IN PURSUANCE OF CLAUSE NO.38 OF LEASE DEED DATED 31.03.2022 AND TO PASS SUCH OTHER SUITABLE ORDERS AS NECESSARY UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE AND EQUITY. 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. To appoint an arbitrator Sri. A.P. Murare, Retired District Judge or any other Retired District Judge, as sole Arbitrator to adjudicate the dispute arising out of the Lease Deed dated 31.03.2022 in the above matter in pursuance of Clause No.38 of Lease Deed dated 31.03.2022 and to pass such other suitable orders or necessary under the facts and circumstances of the case and in the interest of justice and equity. b. Grant any other such relief/s as this Hon’ble Court may deems fit in the circumstances of the case, including an order of costs, in the interest of justice and equity. 2. The Petitioner being a landlord had entered into a lease deed with a respondent tenant on 31.03.2022 - 3 - HC-KAR NC: 2025:KHC:43886 CMP No. 72 of 2025 which is governed by an arbitration Clause 38, which is reproduced hereunder for easy reference: “In case of any dispute/difference/mutual claims, the same shall be resolved amicably or if settlement is not reached, they may be resolved, by having recourse to Arbitration Proceedings, having its seat in Bangalore and the language used be English, subject to the jurisdiction of Bangalore City.” 3. There being certain dispute as regards non-payment of rent and the cheque issued by the respondent having been dishonoured, the petitioner issued a notice on 20.06.2024 invoking the arbitration clause and appointing its nominee arbitrator. The said notice was returned with the endorsement of ‘no such person at the office at the address’. In that view of the matter, the petitioner had approached this Court filing above petition. 4. Notice having been issued, respondent has entered appearance. 5. The submission of the learned counsel for the respondent is that the lease deed was only for a - 4 - HC-KAR NC: 2025:KHC:43886 CMP No. 72 of 2025 period of eleven months and the said lease has expired on 01.05.2023. The lease having expired, the arbitration clause has also expired along with the lease and therefore, no arbitrator can be appointed. 6. Heard Sri.Venkatesh R.Bhagat, learned counsel for the Petitioner and Sri.Manu N.P., learned counsel for Respondent. Perused papers. 7. The short question that arises for consideration is: “whether with the expiry of the lease deed, the arbitration clause contained therein would also expire?” 8. The Hon'ble Apex Court and this Court in a catena of decisions have categorically held that the arbitration clause would be a separate agreement which will govern the dispute adjudication between the parties and the expiry, termination and or cancellation of the parent agreement in which the arbitration clause is contained will not have any bearing on the continuance of the arbitration clause for the purpose - 5 - HC-KAR NC: 2025:KHC:43886 CMP No. 72 of 2025 of adjudication of disputes, more so when termination itself could be a dispute. In that view of the matter, I am unable to accept the submission of the learned counsel for the Respondent that with the expiry of the lease deed, the agreement also expired. As such, I pass the following: ORDER i) CMP is allowed. ii) Sri.A.V.Vaidya, a former Senior Civil Judge of the District Judiciary of the 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. iii) Registry is directed to forward a copy of this order to the Director, Arbitration and Conciliation Centre for doing the needful. iv) Since the order is passed in the presence of all the counsel, they shall appear before the Director, Arbitration and Conciliation Centre - 6 - HC-KAR NC: 2025:KHC:43886 CMP No. 72 of 2025 without requirement of any notice on 19.11.2025 at 2.30 p.m. SD/- (SURAJ GOVINDARAJ) JUDGE PRS List No.: 1 Sl No.: 63