- 1 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JUNE 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 545 OF 2025 BETWEEN: MR RAYOMAND KERSI DINSHAW SRI. RAYMAND KERSI DINSHAW, 4-1-889/9A, BAI MANECKBAI, NUSSERWANJI FIRE TEMPLE COMPOUND, G/F TILAK ROAD, HYDERABAD - 500001 REP BY SPA HOLDER, KHOREMAND M SINGANPORIA S/O MINOO M SIGNAPORIA AGED ABOUT 39 YEARS, OCC BUISNESS, R/O 1-8-505/2, PRAKASH NAGAR, SECUNDERABAD 500016. …PETITIONER (BY SRI.SYED AKBAR PASHA., ADVOCATE FOR SRI. BALAJI PRASAD V., ADVOCATE) AND: M/S EXPAT PROJECTS AND DEVELOPMENT PVT LTD OFFICE AT 2ND FLOOR, SOBHA PEARL Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 NO. 1, COMMISSARIAT ROAD, BANGALORE 560025 AT CARLTON TOWERS, A WING 3RD FLOOR, UNIT NO. 301-314, NO.1, OLD AIRPORT ROAD, BANGALORE KA 560008. …RESPONDENT (BY SRI. NIYATHI M., ADVCOATE FOR SRI. UDAY SHANKAR R MANJESHWAR., ADVOCATE) THIS CMP IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996., PRAYING TO APPOINT AN ARBITRATOR FOR ADJUDICATION OF THE DISPUTE RAISED BY THE PARTIES AS PER THE LETTER TO INTENT DATED 23.01.2015 VIDE ANNEXURE - A WITH THE RESPONDENT IN RESPECT OF TOWARDS ALLOTMENT OF FLATS FOR CONSIDERATION OF RS.22,50,000/- BY INVOKING THE LETTER OF INTENT DATED 23.01.2015 PAGE NO.5 ANY AND ALL DISPUTES OR DIFFERENCES ARISING OUT OF OR IN CONNECTION WITH THIS LETTER OR It is true that PERFORMANCE SHALL BE SETTLED IN ACCORDANCE WITH THE INDIAN ARBITRATION ACT 1996. THE LANGUAGE OF THE ARBITRATION SAHLL BE IN ENGLISH. THE VENUE OF THE ARBITRATION SHALL BE BANGALORE, INDIA. - 3 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner has entered into a contract to purchase an apartment from the respondent paying a sum of Rs.10,95,000/- as part of the agreed sale consideration and agreeing to pay the remaining amount of Rs.11,25,000/- in instalments. The petitioner and respondent have agreed in the following terms on completion of the project and handing over the unit. "The entire Project is being developed in phases and is estimated to be completed by December 2018. The apartments that are intended to be allocated for early allottees are expected to be completed by December 2017. If the apartments are not ready by December 2017, Expat will be given an additional 6 months as a grace period, following which a penalty in the form of rental of Rs.5/- per sq.ft. of the said flat/s area will be paid to the Purchaser every - 4 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 month till the date of handover of the said flat/s." 2. The petitioner and respondent have agreed that all disputes shall be settled under the Arbitration and Conciliation Act, 1996 [for short, the Act]. The petitioner and respondent have stipulated no procedure for the constitution of the panel of arbitrators. The agreement for arbitration reads as under: "Any and all disputes or differences arising out of or in connection with this letter or its performance shall be settled in accordance with the Indian Arbitration Act 1996. The language of the arbitration shall be in English. The venue of the arbitration shall be Bangalore, India." 3. The petitioner has caused a Legal Notice dated 05.01.2024 raising a claim for money and followed it up with a Civil Miscellaneous Petition under Section 11 of the Arbitration and Conciliation Act,1996 in CMP No.137/2024, which is disposed of - 5 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 by this Court on 17.01.2025 observing that the petition cannot be allowed as the petitioner has failed to nominate an arbitrator to whose nomination the respondent could agree. It is after this order that the petitioner has caused notice dated 25.03.2025 with terms which read as under: 7. it is submitted that as per clause in the letter of intent dated 23.01.2015 entered into by you any dispute arising between both the parties is to be referred for Indian Arbitration Act. 1996 dispute arising between both the parties is to be referred as hereunder: "Any and all dispute or difference arising out of or in connection with this letter or its performance shall be settled in accordance with the Indian Arbitration Act. 1996. The language of the arbitration shall be in English. The venue of the arbitration shall be Bangalore, India. My client as per the Clause in the said LETTER TO INTENT provides for arbitration in case of disputes arising between the parties. My client hereby invokes the said - 6 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 arbitration clause and nominates 1. Sri. RADHAKRISHNA HOLLA, Retired District Judge, 2. Shri Venkatasudharshana, Retired District Judge, PANEL OF ARBITRATATORS, Arbitration and Conciliation Centre- BENGALURU as the sole arbitrator to adjudicate the disputes between the parties. 8. I, therefore, call upon you by this notice, to pay the sum of 48,97,750 (Rupees forty-eight Lakhs and ninety-seven thousand seven hundred fifty only) principal and interest @12% per annum from 21.05.2015 to till date, within 15 days, failing to comply with the demand of my client, my client is forced to invoke clause of the letter to intent and call upon you to appoint and nominate the arbitrator from your side. My client will also appoint and nominate the Arbitrator from his side. You are requested to confirm the appointment of the said arbitrator within 15 days from the date of receipt of this notice, failing to nominate an arbitrator from your side, within 15 days, my client will have no other alternative to approach the appropriate court for appropriate relief. and holding you also liable for the costs and consequences thereof including a - 7 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 sum of Rs.25,000/- being the charges of this notice." 4. Sri Balaji Prasad, the learned counsel for the petitioner, argues for the appointment of a sole arbitrator. Ms. Niyathi M, the learned counsel for the respondent, argues against the petition being allowed contending that [a] the notice dated 25.03.2025 in the afore terms will not meet the requirements of Section 21 of the Act and [b] the claim for return of money with interest is time-bound and hence is time barred. 5. In elaboration, Ms. Niyathi M submits that though the petitioner has mentioned names of two retired District Judges at the first instance, he has also stated in the latter paragraph that if the respondent does not pay the claim amount, he will then appoint an arbitrator, and therefore, the nomination is not conclusive. On limitation, the learned counsel submits that the completion of the - 8 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 project and handing over possession is in December 2018 with a certain grace period and the claim is barred because the notice is issued for the first time in 2024 beyond three years as contemplated under Article 113 of the Limitation Act, 1963. 6. This Court must opine that the petitioner, in mentioning the two names of retired District Judges, has clearly informed the respondent of his intention to nominate either of them to be the sole arbitrator. This opinion addresses the first ground, and insofar as the second ground is concerned, the question of limitation will have to be decided in the light of the terms agreed for completion of the project and perhaps even Article 56 of the Limitation Act. This is an issue that must be decided with an opportunity to lead evidence. Hence, the following ORDER [a] The petition is allowed. - 9 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 [b] Sri M. Ramesh Rao, a retired District Judge, is appointed as the sole Arbitrator to enter reference of the dispute between the petitioner and the respondent and conduct the proceeding at the Arbitration and Conciliation Centre (Domestic and International), Bengaluru according to the Rules governing the Centre. All questions are left open for due consideration. [c] The Registry is directed to communicate this order [by e-mail] to the Arbitration and Conciliation Centre (Domestic and International), Bengaluru and also to Sri M. Ramesh Rao, No.1193, Sri Ananda Nilaya, 10th Cross, Ashokanagar, Bengaluru-560 050 [e-mail id: mramesh23.rao@gmail.com] as required under the Appointment of - 10 - HC-KAR NC: 2026:KHC:27551 CMP No. 545 of 2025 Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996. SD/- (B M SHYAM PRASAD) JUDGE NV List No.: 4 Sl No.: 5