- 1 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 30 OF 2025 BETWEEN: 1. MR GOPALAKRISHNA R S/O. ANANTHAKRISHNA AGED ABOUT 46 YEARS, R/ AT RKS FARM, MURAKANAHALLI, SHEELANERE HOBLI, KR PETE TALUK, MANDYA DISTRICT-571426 2. MR. JAGADEESH MR, S/O. ANANTHAKRISHNA AGED ABOUT 52 YEARS, R/ AT RKS FARM, MURAKANAHALLI, SHEELANERE HOBLI, KR PETE TALUK, MANDYA DISTRICT-571426 3. MR. SAMPATH KRISHNA MR, S/O. ANANTHAKRISHNA AGED ABOUT 60 YEARS, R/ AT RKS FARM, MURAKANAHALLI, SHEELANERE HOBLI, KR PETE TALUK, MANDYA DISTRICT-571426 …PETITIONERS (BY SRI. RAMA RAMACHANDRA IYER., ADVOCATE) Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 AND: 1. MR A C SRINIVASA RAJU AGED ABOUT 56 YEARS S/O LATE A M CHANDRASHEKARARAJU RESIDING AT NO. 711, 7TH MAIN, 3RD PHASE J.P. NAGAR, BENGALURU - 560 078 2. MRS. A.S. VEENA RAJU, AGED ABOUT 50 YEARS W/O A C SRINIVASA RAJU RESIDING AT NO. 711, 7TH MAIN, 3RD PHASE J.P. NAGAR, BENGALURU - 560 078 …RESPONDENTS (BY SRI. R A CHANDRASHEKARA REDDY., FOR R1 & R2) THIS CIVIL MISC. PETITION FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT SOLE ARBITRATOR TO DETERMINE AND ADJUDICATE THE DISPUTE BETWEEN THE PARTIES HEREIN IN ACCORDANCE WITH THE SEC. 25(b) PROVISIONS OF THE ARBITRATION AND CONCILIATION ACT, 1996 REGISTERED LEASE AGREEMENT DATED 18.01.2020 VIDE ANNEXURE B. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ******* - 3 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER The petitioners filed this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘Act’ for short) to appoint the Sole Arbitrator to determine and adjudicate the dispute between the parties in terms of clause 25(b) the registered lease agreement dated 18.01.2020 vide Annexure-B, as per the provisions of the Act. 2. Brief facts leading rise to the filing of this petition are as follows: 2.1. The petitioners are the landowners of the land measuring 17 acres 13.5 guntas situated at Murakanahalli Village, and the petitioners and the respondents have entered into a registered lease agreement pertaining to the lease property on 18.01.2020. The lease was for a period of 25 years and the respondents paid a sum of ₹22,00,000/- as an interest free security deposit, and also advanced an interest free loan of ₹15,35,000/- towards the conversion of the property from agricultural to industrial use. The - 4 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 agreement clearly stipulates that the respondents were required to pay a sum of ₹2,20,000/- as monthly rent for the use of the lease premises on or before 10th day of each month. The respondents have failed to make a single payment towards the rent as per the terms and conditions mentioned in the registered lease agreement. The petitioners adjusted the interest free security deposit amount of ₹22,00,000/- as well as the interest free loan of ₹15,35,000/- towards the rent to be paid by the respondents. The respondents committed a default in making the payments. The petitioners issued legal notices to the respondents 26.07.2021 and 07.04.2022 by extending an opportunity to the respondents to make outstanding payments. The respondents, again ignored the same, and continued to illegally occupy the lease premises. The petitioners terminated the lease agreement by issuing a notice on 22.01.2024. The said notice was served on respondent No.2, but the notice issued to respondent No.1 was returned with the endorsement ‘not claimed’. There is an arbitration clause in the registered lease agreement. The - 5 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 petitioners invoked the arbitration clause by issuing an arbitration notice dated 27.05.2024 proposing the name of Sri. Bojanna.K.G, Advocate as a sole arbitrator, to which the respondents did not reply. Hence, this petition. 3. Heard the arguments of learned counsel for the petitioners and learned counsel for the respondents. 4. Learned counsel for the petitioners submits that, the petitioners and the respondents have executed a registered lease agreement, and the respondents have committed a breach of terms and conditions of the lease agreement. The petitioners invoked the arbitration clause in the registered lease agreement by issuing the notice on 27.05.2024 proposing the name of an Arbitrator. She submits that, the respondents have not replied to the arbitration notice. Hence, she prays to allow the petition. 5. Per contra, learned counsel for the respondents submits no objection to allow the petition. 6. Perused the records and considered the submissions of the learned counsel for the parties. - 6 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 7. The point that arises for consideration is as follows: Whether the petitioners have made out a ground to appoint a Sole Arbitrator to adjudicate the dispute between the parties to the petition in terms of clause 25(b) of the registered lease agreement dated 18.01.2020 as per the provisions of the Act? 8. There is no dispute regarding the execution of a registered lease agreement dated 18.01.2020 between the petitioners and the respondents. It is alleged that, the respondents have committed a breach of terms and conditions of the registered lease agreement. The petitioner issued legal notices on two occasions calling upon the respondents to pay the arrears of rent. Despite service of notice, the respondents did not reply to the legal notice. The petitioners terminated the registered lease agreement by issuing the notice on 22.01.2024. Even after the termination of lease, the respondents continued to be in possession of the lease premises. Thereafter, the petitioners invoked the - 7 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 arbitration clause by issuing an arbitration notice on 27.05.2024. 9. I have perused the registered lease agreement and there is an arbitration clause at clause 25(b), which reads as follows: “25 LAWS APPLICABLE AND DISPUTE RESOLUTION a. The laws of India shall be applicable to the Parties and to all disputes arising out of this Deed. b. Any disputes between the Parties arising out of this Deed will be finally referred to & exclusively resolved vide arbitration by a sole arbitration under the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof as per the then prevailing Rules of Arbitration. The seat / venue of the arbitration shall be at Bangalore. The language of the arbitration shall be English or Kannada. A sole arbitrator shall be appointed as per the then prevailing Rules of Arbitration of Bangalore International Arbitration Centre. The arbitration award shall be final and binding on the Parties. Subject to this arbitration clause, the Courts in the City of Bangalore or convenient to the parties at the place of schedule property, shall have exclusive jurisdiction in respect of any disputes arising under this Deed.” - 8 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 10. From the perusal of clause 25(b), it discloses that any dispute between the parties arising out of the lease deed would be finally referred to and exclusively resolved vide arbitration by sole arbitration under the provisions of the Act. The petitioners invoked the arbitration clause by issuing a notice on 27.05.2024 to the respondents by proposing the name of learned Advocate as an Arbitrator. The respondents did not reply to the arbitration notice. 11. Admittedly, there is an arbitration clause in the lease agreement and the parties are bound by the terms and conditions of the agreement. In view of the same, the petitioners have made out a ground to appoint a Sole Arbitrator to determine and adjudicate the disputes between the petitioners and the respondents in terms of clause 25(b) of the lease agreement. 12. In view of the above discussion, I proceed to pass the following: ORDER i. The civil miscellaneous petition is allowed; - 9 - HC-KAR NC: 2026:KHC:1145 CMP No. 30 of 2025 ii. Sri. A.V.Vaidya, retired Senior Civil Judge is appointed as an Arbitrator to resolve the disputes between the petitioners and the respondents in terms of clause 25(b) of the registered lease agreement vide Annexure-B, as per the provisions of the Act; iii. The Registry is directed to communicate this order to the learned Arbitrator, and Arbitration and Conciliation Centre, Bengaluru; iv. Pending IA(s), if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE PA CT:KHV List No.: 1 Sl No.: 16