- 1 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 568 OF 2025 BETWEEN: CATERPILLAR FINANCIAL SERVICES INDIA PRIVATE LIMITED A COMPANY INCORPORATED AND REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT GROUND FLOOR, CRESCENT 1, PRESTIGE SHANTINIKETAN WHITEFIELD, HOODI, BENGALURU, KARNATAKA-560048 REPRESENTED BY ITS AUTHORISED SIGNATORY MR. JOCKINS RC …PETITIONER (BY SRI. THAKUR RISHABH RAJ., ADVOCATE) AND: 1. SRI BUDDHA ENGINEERING AND CONSTRUCTIONS PVT LTD., HOUSE NO.87-1388-N, Digitally signed by SHILPABAI S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 SHESHADRI NAGAR HOUSING BOARD COLONY KURNOOL, ANDHRA PRADESH-518002 2. KODITHAM RAJASEKHAR 87-1388-N, SHESHADRI NAGAR NEAR NANDYAL CHECK POST, SHESHADRI NAGAR KURNOOL, ANDHRA PRADESH-518002 3. KODITHAM VARA LAKSHMI 87-1388-N, NDK ROAD, NDL CHEK POST, SHESHADRI NAGAR KURNOOL, ANDHRA PRADESH-518002. …RESPONDENTS (R1, R2 AND R3 ARE SERVED) THIS CMP IS FILED UNDER SECTION 11(6) OF ARBITRATION AND CONCILIATION ACT, PRAYING TO APPOINT A SOLE ARBITRATOR TO RESOLVE THE DISPUTES AND DIFFERENCES AMONGST THE PARTIES IN TERMS OF CLAUSE 21 OF THE LOAN AND SECURITY AGREEMENT DATED 17.12.2024 BEARING NO.808/70004696 AT ANNEXURE B EXECUTED BETWEEN THE PETITIONER AND THE RESPONDENTS. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER The petitioner filed this Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short ‘the Act of 1996’) for the appointment of an arbitrator to resolve the dispute between the parties to the petition in terms of clause 21 of the loan and security agreement dated 17.12.2024, vide Annexure-B as per the provisions of the Act. 2. Brief facts, leading rise to the filing of this petition are as follows: The petitioner and respondents had entered into a loan agreement dated 17.12.2024 and have availed a loan amount of ₹1,40,18,400/- which was to be repaid together with interest in 48 equal monthly installments at ₹3,68,026/- per month commencing from 15.02.2025, and thereby ending on 15.12.2028. That, time was the essence - 4 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 of contract and the respondents were duty bound to pay EMIs on stipulated time, failing which, the respondents were liable for the overdue charges on the defaulted amount and other necessary charges incurred due to default in payment. 3. In the loan and security agreement clause 21 provides an arbitration clause, according to which, if any dispute arose between the parties to the petition, the same shall be resolved through an arbitration. The petitioner invoked an arbitration clause by issuing a notice to respondents on 08.08.2025 vide Annexure-E. Despite the service of arbitration notice, the respondents did not reply to the arbitration notice. Hence, this petition. 4. A notice was issued to the respondents. Despite the service of notice, the respondents remained unrepresented. - 5 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 5. Heard the learned counsel for the petitioner, and perused the records. 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 arbitration in terms of clause 21 of the loan and security agreement vide Annexure-B, as per the provisions of Arbitration and Conciliation Act and the Rules? 7. It is an undisputed fact that the petitioner and respondents have entered into a loan agreement dated 17.12.2024, wherein the petitioner has advanced loan of amount of ₹1,40,18,400/- and time was the essence of contract for repayment of the loan amount along with the interest. The respondents committed a default in making payments on the petitioner. The petitioner invoked an arbitration clause as per clause 21 of the loan and security - 6 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 agreement, by issuing a notice dated 08.08.2025, which reads as follows: 21.2 Any dispute/s arising out of or in connection with this contract, including any question regarding its existence, validity, interpretation, or termination thereof, shall be referred to and finally resolved by arbitration of a sole Arbitrator as per the provisions of the Arbitration & Conciliation Act, 1996. The parties by mutual agreement have appointed and named the sole Arbitrator who shall be Mr. Sri. D.R.Venkatasudarshan, Dist. & Sessions Judge (Retd), Bengaluru. The sole Arbitrator's consent is also obtained before appointment and therefore he can enter upon the reference the moment one of the parties approach him for interim measures/ final award. 8. From the perusal of the arbitration clause, if the dispute arises between the parties to the petition, the said dispute shall be resolved through an arbitration and also agreed for the name of the arbitrator i.e., by name Mr. D.R. Venkatasudarshan, District and Sessions Judge (Retd). There is an arbitration clause and the dispute arose between the parties to the petition, and same has to be resolved through an arbitrator. Hence, the petitioner has made out a ground to refer the arbitral dispute to the - 7 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 arbitrator. Accordingly, the point is answered in the affirmative. 9. In view of the above discussion, I proceed to pass the following order: ORDER i. The Civil Miscellaneous Petition is allowed. ii. Sri. D.R.Venkatasudarshana, District Judge (retired) is nominated as an arbitrator to resolve the dispute between the parties to the petition in terms of clause 21 of the loan and security agreement vide Annexure-B as per the provisions of Arbitration and Conciliation Act, 1996 and the Rules. iii. The Registry is directed to forward a copy of this order to the learned Arbitrator and the Arbitrator, the Director and the Arbitration and Conciliation Center, Bangalore. iv. The Registry is directed to return the original/certified copy of the documents - 8 - HC-KAR NC: 2026:KHC:10343 CMP No. 568 of 2025 produced by the petitioner after retaining the photocopy of the same. v. Pending IA(s), if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE SSB