- 1 - HC-KAR NC: 2026:KHC:26148 CMP No. 310 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD CIVIL MISC. PETITION NO. 310 OF 2025 BETWEEN: BAGALORE METROPOLITAN TRANSPORT CORPORATION CENTRAL OFFICE, K H ROAD, SHANTHINAGAR, BANGALORE 560 027. REPRESENTED BY SRI NAGENDRA S/O NAGARAJU, AGED MAJOR, CHIEF TRAFFIC MANAGER (COMMERCIAL) BMTC. …PETITIONER (BY SRI. B.S. SRINIVAS., ADVOCATE FOR SRI. B L SANJEEV., ADVOCATE) AND: M/S SHREE GURU ENTERPRISES SRI M V RAGHAVENDRA, NO. 31, VENKATADRI, 4TH CROSS, AMARAJYOTHI NAGARA, NAGARABHAVI ROAD, VIJAYANAGAR, BENGALURU - 560 040. …RESPONDENT (BY SRI. DINESH S., ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:26148 CMP No. 310 of 2025 THIS CMP IS FILED U/S.11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 PRAYING TO APPOINT AN ARBITRATOR TO ADJUDICATE THE DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENT AS PROVIDED IN CLAUSE 59(a) OF THE AGREEMENT DATED 13.07.2020 (VIDE ANNEXURE A). 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 [a Road Transport Corporation] has filed this petition for appointment of a sole arbitrator to enter reference of the dispute over the dues claimed from the respondent. The License Agreement contemplates resolution of the dispute by arbitration, and this agreement reads as under: “[a] In case of any dispute arising between the Licensor and the Licensee in respect of the interpretation or performance of any terms and conditions, the same shall be referred to the Managing Director, BMTC of the Corporation for resolution, MD BMTC, whose decision thereon shall be the sole arbitration and Conciliation Act, 1996. - 3 - HC-KAR NC: 2026:KHC:26148 CMP No. 310 of 2025 [b] The subject matter of this agreement and any litigation thereof is limited to the jurisdictional courts of Bengaluru.” 2. The petitioner has granted license to the respondent to run and maintain a Veg Refreshment Room at Kempegowda Bus Station, Bengaluru and has executed the aforementioned License Agreement. The petitioner contends that on the respondent's request, the license was terminated prematurely but the license was extended for the period until finalization of an alternative arrangement and that such alternative arrangement is put in place with effect from 17.01.2022. The petitioner asserts that as of 17.01.2022, the respondent is liable to pay a sum of Rs.88,90,105/- and that it, being entitled to set off security deposit of Rs.66,00,011/-, is entitled to receive a sum of Rs.22,09,094/- after the settlement. 3. Sri B.S. Srinivasa, the learned counsel for the petitioner, and Sri Dinesh S., the learned counsel for the respondent, are heard for disposal of the - 4 - HC-KAR NC: 2026:KHC:26148 CMP No. 310 of 2025 petition. Sri Dinesh S. submits that this Court may not appoint an arbitrator because, even according to the legal notice, the respondent became due to pay a sum of Rs.22,09,094/- with effect from 17.01.2022 but the arbitration notice is issued only on 27.02.2025 which is beyond the period of three years as contemplated under Section under Article 52 of the Schedule of the Limitation Act, 1963. 4. The question is whether this Court, at this stage, can opine that the petitioner's claim is ex-facie barred by limitation so as to conclude that the arbitral proceedings will be futile. It would suffice for this Court to observe that the petitioner claims a sum Rs.22,90,094/- after set off based on an agreement in that regard referring to different demand notices including the last demand on 24.08.2024. The limitation, for the purposes of Article 52, will have to be reckoned from the time when the claim is due and this will have to be ascertained as a question of fact - 5 - HC-KAR NC: 2026:KHC:26148 CMP No. 310 of 2025 in the light of the rival's contentions. As such, this Court finds that there is issue that must be decided and a sole arbitrator must be appointed to enter reference of the dispute. In the light of the afore, the following: ORDER [A] The petition is allowed, and Sri. B. Shivalinge Gowda, a retired District Judge, is appointed as the sole arbitrator to enter reference of the dispute between the petitioner and respondent and conduct the proceeding at the Arbitration and Conciliation Centre [Domestic and International], Bengaluru according to the Rules governing the Arbitration and Conciliation Centre [Domestic and International], Bengaluru. [B] The Registry is directed to communicate this order [through email] to the Arbitration and Conciliation Centre [Domestic and - 6 - HC-KAR NC: 2026:KHC:26148 CMP No. 310 of 2025 International], Bengaluru and Sri. B. Shivalinge Gowda, a retired District Judge, Address: No.138, ‘Belaku’, 2nd main, Judicial Layout, Thalaghattapura, Kanakapura Road, Bengaluru – 560109 [Email:shivalingegowda.dj@gmail.com] as required under the Appointment of Arbitrators by the Chief Justice of Karnataka High Court Scheme, 1996. [C] The submissions of the learned counsels that the addresses of the parties as mentioned in the cause title are also the current address of the parties is taken on record, and the parties are directed to appear before the Director, Arbitration Centre, Bengaluru on 17.07.2026 at 11.30 am. Sd/- (B M SHYAM PRASAD) JUDGE SA Ct:sr