- 1 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 421 OF 2025 BETWEEN: M/S AAVIS INFRA A REGISTERED PARTNERSHIP FIRM HAVING ITS PRINCIPAL OFFICE AT NO.32, 1ST FLOOR, SANTRUPTI MOTAPAP LAYOUT VARANASI MAIN RAOD NEAR MOTHER TERESA SCHOOL ANANDAPURA BENGAURU 560 036 REPRESENTED BY ITS AUTHORIZED SIGNATORY R.MARIDAS …PETITIONER (BY SRI. RAWLEY MUDDAPPA I P., ADV.) AND: N D WADDAR AND CO A PARTENERSHIP FIRM HAVING ITS REGISTERED OFFICE AT H.O # 2-12-32A/54 Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 FRIENDS COLONY, KALABURGI ROAD LINGSUGUR 584122 RAICHUR DISTRICT KARNATAKA …RESPONDENT (THE RESPONDENT SERVED) THE CIVIL MISC. PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT 1996 PRAYING TO APPOINT AN ARBITRAL TRIBUNAL CONSISTING OF THREE ARBITRATORS TO ADJUDICATE THE DISPUTE BETWEEN THE PETITIONER AND THE RESPONDENT AS PER THE ARBITRATION CLAUSE 16 IN WORK ORDER BEARING REFERENCE NO.NDW/2020/21/ ELECTRICAL WORK /NLIS DATED 05.01.2021 PRODUCED AS ANNEXURE 3 AND / OR PASS ANY OTHER ORDER THAT IT MAY DEEM FIT, IN THE INTEREST OF JUSTICE AND EQUITY, AND ETC., THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER The petitioner filed this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act of 1996’), to appoint an Arbitrator to resolve the dispute between the petitioner and the respondent in terms of Clause 16 of the work order dated 05.01.2021 vide Annexure-3. 2. Brief facts, leading rise to the filing of this petition are as follows: The petitioner is a registered partnership firm engaged in the EPC business of infrastructure contracting with a focus on utility and electro-mechanical engineering project. The petitioner and respondent have negotiated and the respondent issued a final work order dated 05.01.2021. The total contract value under the work order - 4 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 was negotiated for Rs.7,40,00,000/- inclusive of GST, with the understanding that any variation in quantities would be paid extra as per the actuals. The payment terms and conditions were agreed as defined in the work order. 10% of the advance payment was transferred by the respondent to the petitioner on 03.02.2021. The petitioner having executed substantial portions of the contracted work, there was a delay due to the respondent on account of its indecision on critical aspects of execution and the failure to provide timely clearance etc. The petitioner suffered significant losses and damages on account of the idle deployment of manpower, machinery, etc. The respondent failed to clear the outstanding dues. There is an arbitration clause in the work order i.e., clause No.16. The petitioner invoked an arbitration clause by issuing a notice on 15.05.2025 vide Annexure-12. The respondent did not reply to the arbitration notice. Hence, this petition. - 5 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 3. A notice was issued to the respondent. Despite the service of notice, the respondent remained unrepresented. 4. Learned counsel for the petitioner submits that, pursuant to the work order having been issued, the dispute arose between the parties regarding clearing of outstanding dues. There exists an arbitration clause and the petitioner has involved an arbitration clause by issuing a notice. Accordingly, prays to allow the petition. 5. Perused the records, and considered the submissions of the learned counsel for the petitioner. 6. The point, that would arise for consideration is as follows: “Whether the petitioner has made out a ground to refer the dispute to the arbitrator in terms of clause No.16 of the Work Order dated - 6 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 05.01.2021 as per the provisions of Arbitration and Conciliation Act, 1996?” 7. It is undisputed fact that the respondent issued a work order dated 05.01.2021 to the petitioner and the petitioner has completed the substantial portion of the work and the petitioner demanded to clear the outstanding dues. The respondent has not cleared the bills/dues. The petitioner invoked an arbitration clause by issuing an arbitration notice dated 15.05.2025. I have Perused the Work Order. 8. The petitioner has produced the Work Order, which discloses that there is an arbitration clause i.e., clause No.16, which reads as follows: 16. ARBITRATION: All disputes arising in connection with this Agreement/Purchaser Order shall be finally settled and governed by the provisions of Arbitration and Conciliation Act, 2015. The arbitration panel shall consist of three arbitrators, one to be appointed by - 7 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 each Party and the third arbitrator shall be appointed by the two appointed arbitrator. The third arbitrator shall serve as a chairman. The award of the arbitral tribunal shall be final and binding on both parties. The proceedings shall be conducted in English language. The fee and other expenses to be paid to the Arbitrator shall be borne by the invoking Party. All other expenses such as venue, attorney fee, making and presenting their case etc., shall be borne by the respective Parties on their own. Any Notices under this Agreement by either Party to the other shall be given in writing by mail, or delivery against receipt, to the respective address stated in the Preamble to this work order. 9. From the perusal of the arbitration clause, it discloses that any dispute arising in connection with the agreement, the same shall be referred to three arbitrators. One to be appointed by each party and third arbitrator shall be appointed by two appointed arbitrators. The third arbitrator shall serve as a Chairman and all there other expenses such as venue, attorney fee and presenting their case shall be borne by their respective parties on their own. Admittedly, the petitioner has involved arbitration clause by issuing arbitration notice as there exists an arbitration clause, and the dispute has to be resolved - 8 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 through an arbitration. The petitioner has made out a ground to refer the dispute to the Arbitration. In view of the above discussion, I answer the point in affirmative. 10. Accordingly, I proceed to pass the following: ORDER i. The Civil Miscellaneous Petition is allowed. ii. Shri D.T.Puttarangaswamy and Shri V.Jagadeesh, learned Retired District Judges are nominated as arbitrators. Two arbitrators are directed to appoint the third arbitrator, and to resolve the dispute between the petitioner and respondent as per the provisions of Arbitration and Conciliation Act, 1996 and the Rules. iii. The Registry is directed to communicate a copy of this order to the Arbitration and Conciliation Centre, Bengaluru. - 9 - HC-KAR NC: 2026:KHC:5001 CMP No. 421 of 2025 iv. The Registry is directed to return the original/certified copy to the petitioner after retaining the photocopy of the same. v. Pending applications, if any, stands disposed off accordingly. Sd/- (ASHOK S.KINAGI) JUDGE SSB