Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2026:KHC:3631 W.P. No.6239/2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL WRIT PETITION NO.6239/2025 (GM-CPC)
BETWEEN:
M/S. SHAMROCK SHIPPING AND TRADING LTD., OFFICE AT IMPERIAL HOUSE KALLITHEAS 4, LIMASSOL, 3086 CYPRUS A COMPANY REGISTERED UNDER COMPANIES ACT, 1956. …PETITIONER (BY SRI. S.R. SIDDARTHA, ADV.,)
AND:
1.
M/S. AAYU INTERNATIONAL REP. BY DIRECTOR MR. YUGAL BANSAL OFFICE AT B-85 BOMMASANDRA INDUSTRIAL AREA 1ST STAGE, ANEKAL ROAD BENGALURU URBAN, BENGALURU - 560 099 A COMPANY REGISTERED UNDER COMPANIES ACT 1956.
2.
MS. YUGAL BANSAL DIRECTOR M/S. AAYU INTERNATIONAL OFFICE AT B-85 BOMMASANDRA INDUSTRIAL AREA 1ST STAGE, ANEKAL ROAD BENGALURU URBAN BENGALURU - 560099
Digitally signed by ARSHIFA BAHAR KHANAM HIGH COURT OF KARNATAKA
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HC-KAR NC: 2026:KHC:3631 W.P. No.6239/2025
A COMPANY REGISTERED UNDER COMPANIES ACT 1956.
…RESPONDENTS
THIS W.P. IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPRORIATE WRIT, DIRECTION OR
ORDER TO SET ASIDE IMPUGNED
ORDER DATED 23/07/2024 OF I.A. NO.2 IN COM. OS NO.458/2023 ON THE FILE OF X ADDL. DISTRICT AND SESSIONS JUDGE, (DEDICATED COMMERCIAL COURT), BENGALURU RURAL DISTRICT, BENGALURU PER ANNX-J AND CONSEQUENTLY RESTORE SUIT INSTITUTED BY THE PETITIONER & ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL
ORAL ORDER
This writ petition is filed seeking following reliefs:
"1. Issue a writ of certiorari or any other appropriate writ, direction or order to set aside impugned order dated 23.07.2024, of IA.No.2 in Com.O.S.No.458/2023 on the file of Xth Addl. District and Sessions Judge, (Dedicated Commercial Court), Bengaluru Rural District, Bengaluru per Annexure 'J' and consequently restore suit instituted by the petitioner.
2. Issue any other appropriate writ, order or direction that it deems fit in the circumstances of the case, In the interest of justice and equity."
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HC-KAR NC: 2026:KHC:3631 W.P. No.6239/2025
2.
Learned counsel for the petitioner submits that the petitioner has filed Com.O.S.No.458/2023 against the respondents for recovery of money based on the contract agreement dated 18.01.2021. It is submitted that during the mediation process before the Commercial Court, the respondents have agreed to repay the amount. However, payments were not made. It is further submitted that even prior to the filing of suit, they admitted to repay the amount, however, could not make the payment, which compelled the petitioner to file the suit for recovery of money. It is also submitted that having agreed for repayment, the respondents filed an application under Section 8 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') to refer the matter to arbitration which erroneously came to be allowed by the trial Court. It is contended that prior to the institution of the suit, the petitioner had issued a notice to the respondents invoking the arbitration clause; however, the respondents failed to participate in the arbitration proceedings, resulting in
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HC-KAR NC: 2026:KHC:3631 W.P. No.6239/2025
discontinuance of the same. These aspects were not considered by the Commercial Court while allowing the application under Section 8 of the Act. Hence, he seeks to allow the petition. 3. Heard the arguments of the learned counsel for the petitioner and meticulously perused the material available on record. 4. The records indicate that the petitioner has filed Commercial O.S.No.458/2023 for recovery of sum of 60,040.00 US Dollar equivalent to INR 45,04,831/- with pending and future interest at the rate of 24% per annum, from due date of the invoice i.e., 03.05.2021 till the date of total settlement of the debt amount by the defendant. It is to be noticed that the respondent-defendant has entered appearance in the said suit and filed an application under Section 8 of the Act contending that the contract agreement dated 18.01.2021 contains arbitration clause and requested to refer the matter to the arbitration. The
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HC-KAR NC: 2026:KHC:3631 W.P. No.6239/2025
perusal of the affidavit accompanying the application and the agreement produced clearly indicates that the clause 12 of the agreement provides resolution of dispute by arbitration.
For ready reference, clause 12 of the agreement dated 18.01.2021 is extracted herein below:
"This contract, including the arbitration clause shall be governed by, interpreted and construed in accordance with the substantive laws of England and Wales excluding the United Nations Convention on contracts for the international sales of goods. Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the Rules of the London Court of International Arbitration (LCIA), which rules are deemed to be incorporated by reference into this clause. The seat, or legal place, of arbitration shall be London. The language to be used in the arbitration shall be English, the number of arbitrators shall be three (1 arbitrator to be appointed by each party, and the third to be chosen by the two party-appointed arbitrators). The parties waive irrevocably their right to any form of appeal, review or recourse to any Court or other judicial authority."
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HC-KAR NC: 2026:KHC:3631 W.P. No.6239/2025
5. The trial Court considering the specific clause recorded the reason that the dispute is arbitrable dispute as per the clause and disposed of the suit by referring the matter to the arbitration. I do not find any error in the finding recorded by the trial court calling for any interference. The other contentions urged by the petitioner are on merits of the case, the same cannot be gone into by this Court in these proceedings. Accordingly, the writ petition is dismissed. Sd/- (VIJAYKUMAR A. PATIL) JUDGE
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