IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF NOVEMBER, 2019 BEFORE THE HON’BLE MR.JUSTICE B. VEERAPPA CIVIL MISCELLANEOUS PETITION NO.114/2019 BETWEEN:
M/s Amardeep Mines Minerals Private Limited, A registered Company under the Companies Act, 1956 Registered Office at No.269, Amardeep, 8th Main, Rajiv Gandhi Nagar, Nandini Layout, Bengaluru – 560 096 Represented by its Managing Director, Sri.Harinath Chowdhary Panguluru, Aged 39 years, Son of Sri.Nagarajulu Naidu.
(By Sri.Jagadish Baliga N, Advocate) AND:
Sri.R.Vinoth Prakash, Aged about 45 years, Son of late D.Ramini Mohan, Resident of No.24, New No.171, Duraisamy Naidu Street, Dharmapuri – 636 701, Dharmapuri District, Tamil Nadu State.
... Petitioner ... Respondent This Civil Miscellaneous Petition is filed under Section 11(5) of the Arbitration and Conciliation Act 1996, praying this Hon’ble Court to settle the dispute between the petitioner and the respondent in pursuance of the dispute arisen by the Agreement dated: 26.07.2015 as per Annexure- A and grant any other order as deems fit under the circumstances of the case, in the interest of justice and equity and etc.
This Civil Miscellaneous Petition coming on for Admission, this day, the Court made the following:
O R D E R The petitioner has filed a present Civil Miscellaneous Petition under the provisions of Section 11(5) of the Arbitration and Conciliation Act, 1996 (for short the ‘Act’) for appointment of Sole Arbitrator to resolve the dispute between the parties in terms of clause 17 of the Agreement entered into between the parties on 26.07.2015.
2. It is the case of the petitioner that the petitioner has entered into agreement with the respondent for undertaking the work of excavating, development, removing, sale and transportation of the Granite Blocks for a period of 5 years and agreeing to extend the same by mutual understanding. In pursuance of the Agreement, the petitioner has paid a sum of Rs.25,00,000/- as settled deposit. It has been further agreed that the advance amount should be deducted from the goodwill amount at the rate of Rs.750/- per cubic meter and remaining amount to be repaid within 30 days from the date of termination of the Agreement and undertaking of excavating, removing, sale and transportation of the Granite Blocks in the land bearing Sy. No.173/1 measuring 1.00 hectares situated at Katikapalli Village, S R Puram Mandala, Chittooru District, Andhra Pradesh State for a period of five years and paid Rs.25,00,000/- as security deposit. Further agreed that the advance amount will be deducated towards goodwill amount at the rate of Rs.750/- per cubic meter and remaining amount to be returned within 30 days from the date of termination of Agreement. Failing which, 24% of interest per annum is agreed to be charged. It is further agreed in the agreement between the parties that in case of any dispute, the Arbitrator to be appointed for redressal.
3. It is further contended that on 05.08.2015, the petitioner agreed with an Agreement for excavation, removal, purchase and Transportation of Granite Blocks with the Respondent and M/s KNS Stonetech Private Limited, a sister concern of the petitioner. On 08.01.2018, the respondent intervened with the Transportation and stopped the excavation of the Granite. Therefore, the petitioner issued Legal Notice terminating the Agreement with effect from 11.09.2017 and demanding the refund of the security deposit of Rs.25,00,000/- and damages of Rs.15,00,000/- along with interest at 24% per annum. Therefore, the petitioner is before this Court for the relief sought for.
4. The respondent though served, but unrepresented.
5. I have heard the learned counsel for the petitioner.
6. Sri.Jagadish Baliga N, learned counsel for petitioner reiterating the averments made in the Civil Miscellaneous Petition contended that there is no dispute between the parties with regard to the agreement entered into on 26.07.2015 for undertaking the work of excavating, development, removing, sale and transportation of the Granite Blocks for a period of five years in the property, which is morefully described in the Agreement between the parties. The petitioner has paid Rs.25,00,000/- as security deposit. When things stood like thus, on 08.01.2018 the respondent intervened with the transportation and stopped the excavation of the Granite. Though the legal notice issued by the petitioner on 08.01.2018, the respondent has not replied. In view of the provision of clause 17 of the Agreement entered between the parties, the matter has to be referred to the Arbitration. Therefore, he sought to allow the Civil Miscellaneous Petition.
7. Having heard the learned counsel for the petitioner, as the petitioner produced the copy of the Agreement dated 26.07.2015, when query was made about the original Agreement, the learned counsel for the petitioner produced the Original Agreement for perusal of this Court. On careful perusal of the said agreement, it clearly reflects that both parties have signed the said agreement as contemplated under Section 7 of the ‘Act’. Thereby, there is no dispute with regard to the Agreement entered between the parties. The petitioner issued legal notice on 08.01.2018 and same was served. It is also not in dispute that neither the respondent has replied to the legal notice issued by the petitioner nor appeared before this Court. Though he was served but unrepresented. Any dispute has to be resolved in terms of the Clause 17 of the Agreement, which reads as under;
“17. The parties hereby agreed to abide by the terms and conditions of this agreement in the event if there is any dispute or differences that may arise in terms of this agreement or in respect of the scheduled land the same shall be referred to the arbitrators. One appointed by the party of the First part and Second arbitrators appointed by the party of the Second part and third arbitrators appointed with the Conciliation Act of 1994 is applicable to the proceeding before arbitrators. All the arbitrators can undergo the discussions and get solve the problem at the office of Second party.”
8. In the Arbitration clause, it is specifically stated that all the arbitrators can undergo the discussions and get solve the problem at the office of Second party/petitioner i.e., No.269, Amardeep, 8th Main, Rajiv Gandhi Nagar, Nandini Layout, Bengaluru – 560 096. Therefore, the address comes within the jurisdiction of this Court. It is also not in dispute that the petitioner issued legal notice dated 04.02.2019 as contemplated under Section 11(5) of the ‘Act’. In view of the aforesaid admitted facts, there is no impediment for this Court to appoint Sole Arbitrator to adjudicate the dispute between the parties.
9. For the reasons stated above, the Civil Miscellaneous Petition is allowed. Sri.Narendra Kumar Gunaki, Former District Judge is appointed as an Arbitrator to adjudicate the dispute in terms of clause 17 of the agreement dated 26.07.2015 entered between the parties.
10. Registry is directed to send copy of this order to Sri.Narendra Kumar Gunaki, Former District Judge as well as respondent and Arbitration Centre forthwith for reference.
Sd/- JUDGE NBM