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2026 DAILYLAW 47083 (KAR)

THE KARNATAKA TELECOM DEPARTMENT EMPLOYEES CO OPEARTIVE SOCIETY LIMITED v. M/S SREE THEJESHVINI LAND HOLDINGS / DEVELOPERS

CMP/199/2022 · 2026-01-22

Ashok S Kinagi

body2026

Judgment text

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- 1 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 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. 199 OF 2022 BETWEEN: THE KARNATAKA TELECOM DEPARTMENT EMPLOYEES CO OPEARTIVE SOCIETY LIMITED PRESENTLY HAVING ITS REGISTERED OFFICE AT NO 706, AMIMA’S KASTLE 1ST FLOOR, CBI ROAD HMT LAYOUT, R T NAGAR POST, BANGALORE - 560032 REP. BY ITS PRESIDENT BAKTHAVAKCHALAM AND SECRETARY B S MANJUNATH …PETITIONER (BY SRI. RAMESH H E., AND SRI. VIJAYA SHEKARA GOWDA V., ADVOCATES) AND: 1. M/S SREE THEJESHVINI LAND HOLDINGS / DEVELOPERS No.2626, 14TH MAIN, 7TH CROSS 2ND FLOOR, SAHAKARANAGARA BENGALURU - 560092 REP BY ITS PROPRIETOR SRI MAHESH KUMAR B R 2. SRI. MAHESH KUMAR B R PROPRIETOR M/S SREE THEJESHVINI LAND HOLDINGS / Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 DEVELOPERS No.2626, 14TH MAIN, 7TH CROSS 2ND FLOOR, SAHAKARANAGARA BENGALURU - 560092 ALSO AT BETTANAHALLI VILLAGE KUNDANA HOBLI DEVANAHALLI TALUK BENGALURU RURAL DISTRICT – 562 110 (RESPONDENT No.2 IS DELETED VIDE COURT ORDER DATED 12.08.2022) …RESPONDENTS (V/O DATED 12.08.2022, R2 IS DELETED FROM THE ARRAY OF PARTIES. V/O DATED 09.01.2026 SERVICE OF NOTICE TO R1 H/S) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) AND (6) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT ARBITRATOR/S TO REDRESS THE EXISTING DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENT AS PER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 AND FURTHER BE PLEASED TO APPOINT ANY LEARNED RETIRED DISTRICT OR HON’BLE HIGH COURT JUDGE AS HON’BLE ARBITRAROR IN THE PRESENT CASE TO RESOLVE THE EXISTING DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENT AS IN VIEW OF THE RESPONDENT HAVE DECEIVED AND DEPRIVED AND NEGLECTED AND ALSO COMMITTED BREACH OF TERMS AND CONDITIONS UNDER THE MOUS DATED 10.07.2014 ANNEXURE-A AND 12.09.2015 ANNEXURE-B AND FURTHER THIS HON’BLE Court BE PLEASED TO GRANT SUCH OTHER APPROPRIATE ORDERS, RELIEFS, DIRECTIONS AS THE CASE MAY BE DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER 1. This petition is filed under Section 11(6) of the Arbitration and Conciliation Act, for the appointment of an arbitrator to resolve the dispute arose between the petitioner and respondent in terms of the Memorandum of Understanding (‘MOU’ for brevity) dated 10.07.2014 vide Annexure-A and 12.09.2015 vide Annexure-B. 2. Brief facts leading rise to the filing of this petition are as follows: 3. The petitioner society has entered into a memorandum of understanding with the respondent on 10.07.2014 offering to purchase the lands that may be procured by the respondent. As the respondent assured to the society that, it would procure lands for the formation of residential sites in - 4 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 and around Kundana Hobli, Devanahalli taluk, Bengaluru Rural district. 4. The respondent also made several representations and promises that he would obtain necessary permission from BIAPPA and he would procure the lands from the land owners with necessary permission for registration of the said lands to go with project and he assured that he would obtain necessary conversion orders to form residential layout. 5. The petitioner and respondent have entered into MOU dated 10.07.2014. The respondent received ₹50,00,000/- under a Cheque No.268361 dated 01.10.2014 drawn on Axis Bank, Malleswaram Branch, Bengaluru from the petitioner society. Further, the parties again entered into MOU dated 12.09.2015, wherein respondent agreed to procure the lands with permission of the authority. The dispute arose between the petitioner and respondent. - 5 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 The petitioner invoked an arbitration clause by issuing a legal notice on 01.07.2019. The respondent did not claim the legal notice. The said notice was returned to the petitioner's counsel as ‘addressee not claimed’. Hence, a cause of action arose for the petitioner to file this petition. 6. A notice was issued to the respondent. Despite the service of notice, the respondent remained unrepresented. 7. Heard the learned counsel for the petitioner. 8. Learned counsel for the petitioner submits that the petitioner and respondent have executed 2 consecutive MOUs’ and dispute arose between the petitioner and respondent. The petitioner invoked an arbitration clause by issuing a notice dated 1.07.2019. He submits that the respondent avoided to receive the arbitration notice. The postal cover returned with a shara as unclaimed. Hence, he - 6 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 submits that the dispute between the parties is to be resolved through an arbitrator. Hence, he prays to allow the writ petition. 9. Perused the records, and considered the submissions of the learned counsel for the parties. 10. The point that would arise for consideration is as follows: “Whether the petitioner has made out of ground to refer the arbitral dispute to the arbitrator under the terms and conditions of Memorandum of Understanding dated 10.07.2014 as per the provisions of Arbitration and Conciliation Act?” 11. It is an undisputed fact that the petitioner and respondent have entered into 1st MOU dated 10.07.2014 and 2nd MOU dated 12.09.2014. The dispute arose between the parties to the petition. The petitioner invoked an arbitration clause by issuing a notice dated 01.07.2019 vide Annexure-C. - 7 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 The Postal cover returned with a shara as unclaimed. As the arbitral dispute arose between the parties, the said dispute has to be resolved through an arbitration. The petitioner has made out a ground to refer the arbitral dispute to the arbitrator. Accordingly, I answer the point in the affirmative. 12. In view of the above discussion, I proceed to pass the following order: ORDER i. The Civil Miscellaneous Petition is allowed. ii. Shri. G Nanjundaiah, District Judge (Retired) is appointed as an arbitrator to resolve the arbitral dispute between the petitioner and respondent as per the provisions of Arbitration and Conciliation Act and the Rules. iii. The Registry is directed to forward a copy of this order to the learned Arbitrator and the Arbitration and Conciliation Centre. - 8 - HC-KAR NC: 2026:KHC:4005 CMP No. 199 of 2022 iv. Pending IA(s), if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE SKS