- 1 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 145 OF 2025 BETWEEN: CATERPILLER FINANCIAL SERVICES INDIA PRIVATE LIMITED A COMPANY INCORPORATED AND REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFICE PRESENTLY AT: GROUND FLOOR, PRESTIGE SHANTINIKETAN CRESCENT 1, WHITEFIELD ROAD, HOODI, BENGALURU URBAN, KARNATAKA – 560048 REP. BY VISHWAROOP NANJACHAR AUTHORISED SIGNATORY …PETITIONER (BY SRI. RISHABHA RAJ., ADVOCATE) AND: 1. VS INFRA LOGISTICS PVT. LTD. 1B, 1ST FLOOR, 50-58-12/1/1 PLOT NO.34 Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 VIJAYASURYANIVAS, RAJENDRA NAGAR VISAKHAPATNAM - 530016 ANDHRA PRADESH 2. CHAKRADHARAMANTI SATISH KUMAR S/O APPARAOCHAKRADHARAMANT 9-6-48 FLAT NO. 305, ADITYA RESIDENCY SIVAJIPALEM, MVP COLONY, LB COONY VISAKHAPATNAM, ANDHRA PRADESH – 530017 3. VENKATARAMANA MURTHY C H S/O APPARAO C H 9-6-48, FLAT NO. 3059 ADITYA RESIDENCY, SIVAJIPALEM MVP COLONY, LB COLONY VISAKHAPATNAM ANDHRA PRADESH - 530017. …RESPONDENTS (R1, R2 AND R3 ARE SERVED) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT., 1996., PRAYING TO 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 29.12.2022 ANNEXURE-B EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS. - 3 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER 1. This Civil Miscellaneous Petition is filed under section 11(6) of the Arbitration And Conciliation Act, 1996 (for short ‘the Act’) to appoint the arbitrator for resolving the disputes between the parties to the petition in terms of clause 21 of the Loan and Security Agreement dated 29.12.2022 vide Annexure B as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules. 2. Brief facts, leading rise to the filing of this petition are as follows: 3. The petitioner is a company incorporated under the Indian Companies Act, 1956. The petitioner and the respondents had entered into a loan and security agreement dated 29.12.2022 and have availed a loan - 4 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 amount of Rs.2,04,07,200/- which was to be repaid together with the interest in 48 EMI’s at Rs.5,34,372/- per month commencing from 05.03.2023 and thereby ending on 05.01.2027. The time was the essence of the contract and the respondents were duty bound to pay the EMI’s on stipulated time period failing which the respondents were liable for the overdue charges on the defaulted amount and other necessary charges incurred due to the default in payment. 4. There is an arbitration clause at Clause 21 of the Loan and Security Agreement. The respondents committed breach of contractual terms. Despite repeated requests the respondents have failed to pay the outstanding dues. Further, the petitioner issued a notice dated 20.11.2023 terminating the agreement and called upon the respondents to make the payment. However, the respondents committed a default in making payments. The petitioner issued an arbitration notice - 5 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 dated 19.01.2025 invoking the arbitration clause. However, the respondents neglected to give consent to the appointment of the sole arbitrator. Hence, this petition. 5. Despite the service of notice, the respondents remained unrepresented before this court. 6. Heard the learned counsel for the petitioner. 7. Learned counsel for the petitioner submits that, the arbitral dispute arose between the parties to the petition and there exists an arbitration clause. He submits that the petitioner invoked the arbitration clause by issuing an arbitration notice under section 21 of the Act. Hence, the dispute has to be referred to the Arbitration. Accordingly, on these grounds, prays to allow the petition. 8. Perused the records, and considered the submissions of the learned counsel for the petitioner. - 6 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 9. The point, that would arise for consideration is as follows: “Whether the petitioner has made out a ground to refer the dispute to the arbitration in terms of clause 21 of the loan and security agreement dated 29.12.2022 vide Annexure B as per the provisions of the Arbitration and Conciliation Act, 1996?” 10. It is undisputed that the petitioner and the respondents entered into a loan agreement dated 29.12.2022 and have availed a loan amount of Rs.2,04,07,200/- which was to be repaid together with the interest in 48 EMI’s at Rs.5,34,372/- per month commencing from 05.03.2023 and thereby ending on 05.01.2027. The time was the essence of the contract. The respondents committed breach of contractual terms. Despite repeated requests the respondents have failed to pay the outstanding dues. - 7 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 The petitioner issued an arbitration notice dated 19.01.2025 invoking the arbitration clause. 11. I have perused the arbitration clause, at clause 21 of the Loan and security agreement dated 29.12.2022, which reads as follows: 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. - 8 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 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-interim order/s as may be just, expedient and necessary. - 9 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 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 - 10 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 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 I ender only and shall not be construed so as to limit the night 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. 12. From the perusal of the aforementioned arbitration clause, it is evident that, in the event of any dispute concerning this contract, the same shall be referred to and resolved by the sole arbitrator and that the parties have already nominated the arbitrator. - 11 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 Admittedly, there is an arbitration clause and the dispute arose between the parties to the petition which is arbitral in nature and the petitioner has invoked the arbitration clause by issuing an arbitration notice dated 19.01.2025. However, the respondents did not concur in appointing the arbitrator. 13. For the foregoing discussion, the petitioner has made out a ground to refer the dispute to the arbitration. Accordingly, I answer the point in the ‘affirmative’. 14. In the result, the following: ORDER i. The Civil miscellaneous petition is allowed. ii. Sri. D.R. Venkatasudarshana, learned District Judge (Retired), is appointed as the sole arbitrator to resolve the dispute between the petitioner and respondents in terms of clause 21 of the Agreement - 12 - HC-KAR NC: 2026:KHC:10940 CMP No. 145 of 2025 at Annexure-B as per the provisions of the Arbitration and Conciliation Act, and the Rules. iii. All contentions of the parties are kept open. iv. The Registry is directed to communicate this order to the learned arbitrator and the director of the Arbitration and Conciliation Centre, Bengaluru. v. The Registry is directed to return the original/certified copy of the documents produced by the petitioner after retaining the photocopy of the same. vi. Pending IA(s), if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE SKS (online) CT:KHV