- 1 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 297 OF 2024 BETWEEN: 1. ARVIND YOUTHS BRANDS PRIVATE LIMITED (A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956) HAVING ITS REGISTERED OFFICE AT THE ARVIND MILLS PREMISES, NARODA ROAD RAILWAYPURA POST AHMEDABAD 380 025. AND ALSO HAVING OFFICE AT: DU PARC TRINITY, 8TH FLOOR, 17 M.G. ROAD, BENGALURU 560 001. RERPESENTED HEREIN BY ITS AUTHORIZED SIGNATORY MR. ILIYAS MOHAMMAD, S/O HAZI SARVAR MOHAMMAD AGED ABOUT 42 YEARS RA/T NO. 15, 7TH CROSS ABBAIAH REDDY LAYOUT KAGGADASAPURA BENGALURU 560 093. …PETITIONER (BY SRI. GURU PRASAD C. REDDY, ADVOCATE) Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 AND: 1. BANSAL TRADING CO., A PROPRIETORSHIP FIRM, HAVING ITS REGISTERED OFFICE AT, SHOP NO.38, NH 7 FACTORY OUTLET BARNALA HIGHWAY, BHUCHO KALLAN, PUNJAB, 151 001 REPRESENTED BY ITS PROPRIETOR AND AUTHORISED SIGNATORY. 2. MR. ROBIT AGED MAJOR PROPRIETOR M/S BANSAL TRADING CO., SHOP NO. 38, NH 7 FACTORY OUTLET BARNALA HIGHWAY, BHUCHO KALLAN, PUNJAB 151001. …RESPONDENTS (BY VIDE ORDER DATED 30.01.2026, SERVICE OF NOTICE TO R1 & R2 IS HELD SUFFICIENT) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11 (5) READ WITH SECTION 11 (6) OF THE ARBITRATION AND CONCILIATION ACT, 1996. PRAYING THAT THIS HONBLE COURT BE PLEASED TO APPOINT MR. JUDGE K. RAMAKRISHNA (RETD.) OR ANY OTHER INDEPENDENT ARBITRATOR AS ARBITRATOR TO ADJUDICATE UPON ALL THE DISPUTES AND /OR DIFFERENCES BETWEEN THE PARTIES TO THIS PETITION ARISING OUT OF CONTRACT BETWEEN THE PARTIES PURSUANT TO FRANCHISE AGREEMENT DATED 16.09.2021 AT CLAUSE 16 AS PER ANNEXURE-B. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI - 3 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 ORAL ORDER 1. The petitioner has filed this Civil Miscellaneous Petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short, ‘the Act’) for the appointment of an arbitrator to resolve the dispute between the parties to the petition in terms of Clause 16 of the Franchise Agreement dated 16.09.2021 as per the provisions of the Act and the Rules. 2. Brief facts, leading rise to the filing of this petition are as follows: 3. The petitioner and the respondents have entered into a Franchise Agreement dated 16.09.2021. The dispute arose between the petitioner and the respondents. The petitioner issued a final notice regarding settlement of outstanding dues on 20.08.2021 and a final reminder notice on 07.03.2022. The respondents neither replied to the notices nor paid the amount. There is an arbitration clause in the Franchise Agreement, and the petitioner invoked the arbitration clause by issuing a notice on 04.01.2024 vide Annexure “G”, however, the respondents - 4 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 refused to accept the notice. Hence, a cause of action arose for the petitioner to file this petition. Accordingly, prays to allow the petition. 4. The Court notice was issued to the respondents. However, the respondents refused to accept the notice. 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 arbitrator in terms of clause 16 of the Franchise Amendment dated 16.09.2021?” 7. It is an undisputed fact that the petitioner and the respondents have entered into a Franchise Agreement on 16.09.2021, and the dispute arose between the petitioner and the respondents. The petitioner issued notices to the respondents calling upon the respondents to pay the outstanding dues. Despite service of notices, the respondents failed to repay the outstanding dues. There - 5 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 is an arbitration clause, at Clause 16, in the Franchise Agreement dated 16.09.2021 which reads as follows: “16. ARBITRATION: In the event of any dispute, difference, claim or question arising out of or in relation to or in connection with the agreement touching any matter during the continuance of this Agreement or after termination thereof, such disputes or difference shall be referred to Arbitration by a sole Arbitrator to be appointed by the company, to be conducted as per The Arbitration and Conciliation Act,1996. The venue of the Arbitration shall be Bangalore.” 8. From the perusal of Clause 16, it is clear that if any disputes or differences arising out of or in relation to or in connection with the Agreement, the same shall be referred to an arbitration, by the sole arbitrator to be appointed by the Company. 9. The petitioner invoked the arbitration Clause by issuing a notice under Section 21 of the Act on 04.01.2024, vide Annexure ‘G’. The petitioner has produced the unserved postal cover with a shara as “refused”. - 6 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 10. From the perusal of the records, it is clear that the petitioner and the respondents have entered into a Franchise Agreement dated 16.09.2021, and as dispute arose between the parties to the petition, in terms and conditions of the Franchise Agreement, the petitioner invoked the arbitration clause by issuing a notice under Section 21 of the Act, proposing the name of the arbitrator. Thus, the petitioner has made out a ground to refer the dispute to the Arbitration. Accordingly, the point is answered in the affirmative. 11. In the result, I proceed to pass the following: ORDER (i) These Civil Miscellaneous Petitions are allowed. (ii) Sri. K.Ramakrishna, (Retired) District Judge, is nominated as an arbitrator to resolve the dispute between the parties to the petitions in terms of Clause 16 of the Franchise Agreement dated 16.09.2021, as per the provisions of - 7 - HC-KAR NC: 2026:KHC:10279 CMP No. 297 of 2024 the Arbitration and Conciliation Act, 1996 and the Rules. (iii) The Registry is directed to communicate this order to the learned Arbitrator and the Director of the Arbitration and Conciliation Center, Bangalore. (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. (vi) Pending application/s, if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE RK List No.: 1 Sl No.: 43