- 1 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 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. 467 OF 2024 BETWEEN: SRI M T NAGARAJ S/O LATE M.C. THIMMAIACHAR, AGED ABOUT 80 YEARS, RESIDING AT D 46/A, 'GAYATHRI', 2ND MAIN, V V MOHALA, MYSURU-570002. …PETITIONER (BY MISS. ARCHANA T.V., ADVOCATE FOR SRI. T N VISWANATHA., ADVOCATE) AND: 1. SRI M C THIMMAIAHCHARS FAMILY TRUST REPRESENTED BY ITS PRESIDENT, M.R. RAJARAM, GAYATHRI TALKIES, CHAMARAJA DOUBLE ROAD, K.R. MOHALLA, MYSORE - 570 024. 2. SRI.M.C. THIMMAIACHAR GRANDSONS A FIRM OF PARTNERS, REP. BY ITS MANAGING PARTNER GAYATHRI KRUPA CH-3/2, KANTHARAJA URS ROAD, LAXMIPURAM, MYSURU 570 004. …RESPONDENTS (BY SRI. M ARUN PONAPPA., ADVOCATE) Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT A SOLE ARBITRATOR TO ADJUDICATE UPON ALL THE DISPUTES ARISING BETWEEN THE PETITIONER AND THE RESPONDENTS FROM AND OUT OF THE AGREEMENT DATED 09.05.2019 (ANNEXURE-C) AND AS PER ARBITRAL CLAUSE 17.4 OF THE OPERATION AND MANAGEMENT AGREEMENT AS ANNEXURE-‘C’. 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 petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 to appoint an arbitrator to resolve the dispute between the petitioner and respondents in terms of clause 17.4 of the Operation and Management Agreement dated 09.05.2019 vide Annexure ‘C’. 2. Brief facts leading rise to the filing of this petition are as follows: 3. One late Vastukalasakta T.Cheluvachar, had created a family trust known as “M.C.Thimmaiachar’s Family - 3 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 Trust” vide trust deed dated 15.02.1971. Respondent No.1 and his father had created a firm of partners namely “M.C.Thimmaiachar Grandsons”. 4. The petitioner instituted a original suit in O.S. No.354 of 2019 for the relief of perpetual injunction on the file of V Additional Civil Judge and JMFC, Mysore. Respondent No.2 has entered into Operation and Management Agreement dated 09.05.2019 with respondent No.1. The petitioner, being a sole beneficiary of the Trust, issued a legal notice under the guise of Dispute Notice dated 04.03.2024. The petitioner received a Reply Notice dated 21.03.2024 from respondent No.1, wherein he denied the petitioner of his entitlement to invoke Clause 17.4(a) of the Agreement. The petitioner got issued a notice for the settlement of the dispute to respondent Nos.1 and 2 to refer the dispute for settlement by arbitration through the sole arbitrator. - 4 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 5. Respondent No.1 replied to the legal notice, thereby clearly stating that the petitioner is not a party to the registered Operation and Management Agreement dated 09.05.2019 and the petitioner cannot invoke Clause 17.4(a) for an amicable settlement. Hence, this petition. 6. Heard Ms.Archana T.V., learned counsel for the petitioner and Sri.T.R.Vishwanatha, learned counsel for the respondents. 7. Learned counsel for the petitioner submits that the petitioner is a beneficiary under the Family Trust Deed. She submits that the dispute arose between the trustees. The petitioner being a beneficiary is entitled to raise the dispute in terms of Clause 17.4(a) of the Operation and Management Agreement. She submits that the petitioner has filed a suit for bare injunction, and has invoked the arbitration clause by issuing a notice to the - 5 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 respondents. The respondents have replied to the arbitration notice. She also submits that the petitioner being a beneficiary, is entitled to maintain this petition. She has also placed reliance on Annexure ‘C’ i.e., in the cause title of the said document which discloses that “ ‘MCTFT’, which expression shall, unless repugnant to the context thereof, mean and include its Trustees, Beneficiaries, Successors And Administrators and permitted Assigns”. Hence, she submits that the petitioner being a beneficiary is entitled to maintain this petition and accordingly, prays to allow the petition. 8. Per contra, learned counsel for the respondents submits that the petitioner is not a party to the Trust Deed and hence, the petitioner has no locus standi to file a petition and the petition filed by the petitioner is not maintainable. He also submits that the petitioner has filed a suit in O.S. No.354 of 2019 for a relief of perpetual injunction. He also submits that - 6 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 the petitioner cannot initiate a parallel proceeding. Hence, on these grounds, he prays to dismiss the petition. 9. Perused the records and considered the submissions of the learned counsel for the parties. 10. The point that would arise for consideration in this petition is: “Whether the petitioner has made out a ground to refer the dispute to the arbitrator in terms of clause 17.4(a) of the operation and Management Agreement dated 09.05.2019 as per the provisions of the Arbitration and Conciliation Act and Rules ? ” 11. It is an undisputed fact that late Vastukalastaka T.Cheluvachar had created a family trust and subsequently, respondent No.1 and his father had created a firm of partners, namely “M.C. Thimmaiachar Grandsons”. - 7 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 12. Respondent No.1 had entered into an Operation and Management Agreement dated 09.05.2019. From the perusal of Annexure “C” i.e., the Operation and Management Agreement, discloses that the “parties” which expression shall mean and include its Trustees, Beneficiaries, Successors, Administrators and permitted Assignees. The petitioner falls under the purview of Beneficiary. 13. The Dispute Resolution Clause 17.4 in the Agreement reads as follows: “ 17.4 Dispute Resolution (a) If any disputes, controversies, or claims in connection with the validity, interpretation, implementation or alleged breach of any provision of this Agreement or regarding a question arising out of this Agreement (each a "Dispute"), including any question as to whether the termination of this Agreement by any Party hereto is legitimate, such Dispute shall in the first instance be referred to the other Party. The Party raising a Dispute shall by a prior written notice ("Dispute Notice") to the other Party refer the Dispute for - 8 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 amicable settlement. The Parties hereto shall endeavour to settle such Dispute within 30 (thirty) days from the date of the Dispute Notice. (b) In the event a Dispute cannot be resolved in accordance with the provisions of Clause 17.4(a), such Dispute shall be settled by arbitration for arbitration by a sole arbitrator appointed in accordance with Law. The seat of arbitration shall be Mysuru. The proceedings shall be in English. The arbitration award shall be final and binding on the Parties. (c) The Parties shall continue to fulfil their obligations under this Agreement pending the final resolution of the Dispute and the Parties shall not have the right to suspend their obligations under this Agreement by virtue of any Dispute being referred to arbitration, (d) The arbitration proceedings shall be governed by the Arbitration and Conciliation Act, 1996.” 14. As the dispute arose between the trustees of the M.C.Thimmaichar’s Family Trust, and as per Clause 17.4(a), if any dispute or controversy or claim in connection with the validity, interpretation, implementation or alleged breach of any provision of - 9 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 this agreement or regarding a question arising out of this Agreement (each a “dispute”), including any question as to whether the termination of this agreement by any party thereto is legitimate, such a dispute shall be in the first instance be referred to the other party. The other party raising a dispute shall by a prior written notice (Dispute Notice) to the other party refer the dispute for amicable settlement. The parties thereto shall endeavour to settle such a dispute within 30 days from the date of dispute notice. In the event a dispute cannot be resolved in accordance with the provisions of Clause 17.4(a), such a dispute shall be settled by an arbitration for arbitration by a sole arbitrator, appointed in accordance with law. The seat of the arbitrator shall be Mysore. 15. Pursuant to Clause 17.4(a), the petitioner has issued a notice as per Annexure “D1” dated 04.03.2024, invoking Arbitration Clause as per 17.4(a). Annexure - 10 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 “D2” is the reply to o Annexure ‘D1’. After receipt of the reply, the petitioner invoked an arbitration clause by issuing a notice vide by Annexure “E1” and the respondents have replied to the arbitration notice vide Annexure “E2”, wherein the respondents have denied that the petitioner is a party to the agreement and thereby stating that there is no question of nominating an arbitrator. 16. As observed above, the petitioner being a beneficiary to the Family Trust Deed is entitled to raise a dispute and invoke the arbitration clause in terms of the Operation and Management Agreement. Admittedly, there is an arbitration clause in the Operation and Management Agreement dated 09.05.2019 as per Clause 17.4(b). Thus, the petitioner has made out a ground to refer the dispute to the arbitration. Accordingly, I answer the point for consideration in the affirmative. - 11 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 17. In view of the above discussion, I proceed to pass the following order: ORDER (I) This Civil Miscellaneous Petition is allowed. (II) Sri.Gopala, learned retired District Judge, is nominated as an Arbitrator to resolve the dispute(s) between the petitioner and the respondents in terms of Clause 17.4(b) of the Operation and Management Agreement, as per 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 the Director of the Arbitration and Conciliation Centre, Bangalore. (IV) All the contentions of the parties are kept open, including the interpretation of Clause 17.4(b) of the Operation - 12 - HC-KAR NC: 2026:KHC:3636 CMP No. 467 of 2024 and Management Agreement dated 09.05.2019. (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. (VI) Pending application/s, if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE RK CT:KHV List No.: 1 Sl No.: 36