- 1 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 40 OF 2025 BETWEEN: MR JEETENDRA KATARIA S/O PRAKASH KUMAR KATARIA, AGED ABOUT 44 YEARS R/AT SVASA HOMES, T2 4A MATA SHARADA DEVI ROAD, OFF BULL TEMPLE ROAD, BASVANGUDI BENGALURU - 560062. …PETITIONER (BY SMT. SWATHI M KOTHARI., ADVOCATE) AND: MR SANGAPALLI HEMA NAGA SAIRAMA VAMSI KRISHNA S/O MARUTHI AGED ABOUT 28 YEARS MONCKY SQUAD FASHION PRIVATE LIMITED PRESENTLY AT NO 33, SAMPRATI, MUNISAMAPPA GARDEN ROAD, CHUCHGATTA MAIN ROAD, KONANAKUNTE CROSS ROAD, BANGALORE-560062. …RESPONDENT (BY SRI. AKASH P. HOTI, ADVOCATE (VC) SRI. NANDEESH RAJASHEKHAR LAXETTI., ADVOCATE) Page No.1 is retyped and replaced vide Chamber order dated 03.02.2026, 11.02.2026 Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 THIS CIVIL MISC. PETITION FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT., PRAYING THAT THIS HONBLE COURT BE PLEASED TO EXERCISE ITS JURISDICTION AND POWER UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 AND TO APPOINT AN ARBITRAL TRIBUNAL TO ADJUDICATE AND RESOLVE THE DISPUTES THAT HAVE ARISEN UNDER THE MEMORANDUM OF AGREEMENT DATED 26.07.2024 VIDE (ANNEXURE-A) BETWEEN THE PETITION AND THE RESPONDENT. 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. The petitioner has filed this Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996, to appoint an arbitrator to resolve the dispute between the petitioner and the respondent in terms of Memorandum of Understanding dated 26.07.2024 vide Annexure ‘A’. 2. Brief facts leading rise to the filing of this miscellaneous petition are as follows: - 3 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 3. The petitioner and the respondent have entered into a Memorandum of Understanding on 26.07.2024. It was agreed that the respondent would invest a share capital of ₹25,00,000/- and the petitioner would invest ₹25,00,000/- as a share capital and ₹40,00,000/- as further investment. 4. The respondent, however, did not comply with the terms and conditions as agreed in the Memorandum of Understanding to invest a total sum of ₹25,00,000/-. But, instead of investing the said amount, the respondent just invested ₹20,50,000/- and as such, a sum of ₹4,50,000/- was in due. The respondent was not abiding the terms and conditions of the Memorandum of Understanding. Hence, the petitioner issued a legal notice to the respondent to comply with the terms and conditions of the Memorandum of Understanding. Even then, the respondent did not comply with the terms and conditions of the Memorandum of Understanding. As - 4 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 such, the petitioner was constrained to invoke the arbitration clause by issuing an arbitration notice proposing the name of Sri.Abhilash Raju, an advocate, as a sole arbitrator. As the notice issued to the respondent returned as unclaimed, a cause of action arose for the petitioner to file this petition. 5. Heard the learned counsel for the petitioner and the learned counsel for the respondent. 6. Learned counsel for the respondent submits no objection to allow the petition. 7. Perused the records and considered the submissions of the learned counsel for the parties. 8. It is an undisputed fact that the parties have entered into a Memorandum of Understanding on 26.07.2024. It is alleged that the respondent has failed to comply with the terms and conditions of the Memorandum of Understanding dated 26.07.2024. Hence, a dispute arose between the petitioner and - 5 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 the respondent. The petitioner invoked an arbitration clause by issuing an arbitration notice proposing the name of one Sri.Abhilash Raju, advocate. The respondent did not reply to the arbitration notice. 9. Admittedly, there is an Arbitration Clause (7) in the Memorandum of Understanding, which reads as follows: “7. Any dispute arising out of or in connection with this MOU shall be resolved amicably between the parties. In case of failure to resolve the dispute amicably, the same shall be referred to the Arbitration in accordance with the Indian Arbitration and Conciliation Act, 1996.” 10. As there is an arbitration clause and dispute arose between the parties to the petition, and the learned counsel for the respondent submits no objection to allow the petition, in view of the same, I proceed to pass the following: - 6 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 ORDER (i) The Civil Miscellaneous Petition is allowed. (ii) Hon’ble Mrs.Justice J.M.Khazi, Former Judge, High Court of Karnataka, is appointed as a sole Arbitrator to arbitrate the dispute between the petitioner and the respondent in terms of the provisions of Arbitration and Conciliation Act and Rules. (iii) The Registry is directed to forward a copy of this order to the learned Arbitrator and to the Director, Arbitration and Conciliation Centre for doing the needful. (iv) All the contentions of the parties are kept open. (v) The Registry is directed to return the original and/or certified copies, if produced, to the respective parties who have produced it/them by following due procedure. - 7 - HC-KAR NC: 2026:KHC:3638 CMP No. 40 of 2025 (vi) Pending application/s, if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE RK CT:KHV No.: 1 Sl No.: 39