- 1 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD CIVIL MISC. PETITION NO. 683 OF 2025 BETWEEN: 1. SMT. SUCHARITHA REDDY AGED ABOUT 45 YEARS D/O. SRINIVASULU REDDY W/O. SRIDHAR REDDY INDUKURU R/AT FLAT NO. 118, ORCHID BLOCK KEERTHI RIVIERA ANNEXE 6TH CROSS, KAGGADASAPURA NEW THIPPASANDRA BENGALURU 560 075. 2. SMT. KESAMREDDY SULAKSHANA AGED ABOUT 44 YEARS D/O. REDDY SRINIVASULU PONUGOTI W/O. K RANGA REDDY R/AT 1-2-46/G-1, SRI MANISAI PARADISE NIZAMPET ROAD, NEAR SEVEN HILLS KUKATPALLY TIRUMALAGIRI, HYDERABAD 500 072 STATE OF TELANGANA. 3. SMT. PRASUNA POTTETI AGED ABOUT 46 YEARS D/O. SURYANARAYANA REDDY POTTETI W/O. RAMAKRISHNA REDDY RESIDING AT NO. 11/276 CHANDRASHEKAR REDDY COLONY Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA - 2 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 CHENNUR, CUDDAPAH - 516 162 STATE OF ANDHRA PRADESH. …PETITIONERS (BY SRI. VARUN JOSHI., ADVOCATE) AND: BRIJESH M B S/O. BALARAM M. P. AGED MAJOR R/AT NO. 149, VIGHNASAI 11TH MAIN ROAD, RBI LAYOUT J. P. NAGAR 7TH PHASE BENGALURU 560 078. ALSO AT M/S. KALYA FITNESS WORLD NO. 825, 3RD FLOOR, PUTTA DAS COMPLEX JSS CIRCLE, WKP ROAD, 7TH BLOCK JAYANAGAR EXTENSION BENGALURU 560082. …RESPONDENT (BY SRI. ADITYA M., ADVOCATE) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT., PRAYING TO APPOINT AN ARBITRATOR TO ADJUDICATE THE DISPUTES BETWEEN THE PARTIES IN TERMS OF CLAUSE 13 OF THE MEMORANDUM OF UNDERSTANDING DATED 01.10.2021 AT ANNEXURE A. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD ORAL ORDER 1. This petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, “the Act”), seeking appointment of a sole Arbitrator for Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA - 3 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 adjudication of the disputes that have arisen between the parties under the Memorandum of Understanding dated 01.10.2021, particularly in terms of Clause 13 thereof, produced at Annexure-A. 2. Brief facts of the case are that the respondent represented that he intended to establish a gym and physical fitness centre under the name “Kalya” and was seeking investors for a total investment of Rs.88,00,000/-. Pursuant thereto, the petitioners entered into a Memorandum of Understanding dated 01.10.2021 and agreed to invest Rs.60,00,000/-. The Memorandum of Understanding was duly executed by all the parties and the petitioners cumulatively transferred Rs.60,00,000/- to the respondent’s “Kalya” account towards their investment. It is contended that, despite repeated requests, the respondent failed to provide information regarding the operations and financials of the gym. After completion of the two-year lock-in period, the petitioners sought repayment of their investment, which the Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA - 4 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 respondent refused. Subsequently, disputes arose between the parties in relation to the said Memorandum of Understanding. 3. As the disputes arose between the parties, the petitioners, invoking the arbitration clause contained in the Memorandum of Understanding, issued a notice dated 07.07.2025, vide Annexure-L, to the respondent under Section 21 of the Act. The said arbitration clause 13 reads as under: “13. In the event of any dispute with regard to this AGREEMENT and / or the interpretation of any of the terms and conditions hereof and / or the implementation hereof, including questions of determination of any aspect hereof as may arise or become applicable, any and all other matters relatable to or arising out of the same, howsoever remotely connected, the same shall be referred to arbitrator of the choice of all the parties. The Arbitrator's decision shall be final and binding and all the parties being bound to forthwith implement the same. The arbitration shall be held at Bangalore and Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA - 5 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 shall be conducted in accordance with the Arbitration and Conciliation Act, 1996.” 4. The respondent sent a reply dated 24.07.2025 vide Annexure-M to the said notice. Being dissatisfied with the reply, the present petition is filed seeking appointment of a sole Arbitrator. 5. Learned counsel for the respondent submits that respondent has no objection to the appointment of sole Arbitrator. 6. Having regard to the existence of the arbitration clause contained in the Memorandum of Understanding, which provides for resolution of disputes arising between the parties, and the fact that the petitioner has duly invoked the said arbitration clause by issuing notice under Section 21 of the Act, this Court is of the opinion that a Sole Arbitrator is required to be appointed for adjudication of the disputes between the parties. Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA - 6 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 7. Accordingly, the following: ORDER a) Civil Miscellaneous Petition is allowed. b) Shri K.H.Mallappa, retired District Judge, is appointed as the Sole Arbitrator in the present case to arbitrate the disputes between the parties at the Arbitration and Conciliation Centre (Domestic & International), Bengaluru, as per the Rules governing the said Arbitration Centre. c) All the claims and contentions of the parties are left open. d) Registry is directed to communicate this order via e-mail to the Arbitration and Conciliation Centre (Domestic & International), Khanija Bhavan, Bengaluru, and also to the Sole Arbitrator. e) Registry is directed to return all the original documents produced by any of the parties after obtaining Photostat copies of the same. Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA - 7 - HC-KAR CNR: KAHC010770302025 NC: 2026:KHC:52776 CMP No. 683 of 2025 f) Parties are directed to appear before the Director, Arbitration and Conciliation Centre, Bengaluru, on 23.10.2026 at 11:30 a.m. (H.T. NARENDRA PRASAD) JUDGE HA LIST NO.: 1 SL NO.: 11 Digitally Signed by NARENDRA PRASAD HAREKOPPA THIMMANNA GOWDA