IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29th DAY OF MARCH 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE CIVIL MISCELLANEOUS PETITION NO.39 OF 2017 BETWEEN:
1. SHRI HEMANTH KUMAR NINGEGOWDA, S/O SRI N THAMMEGOWDA NINGEGOWDA, AGED ABOUT 47 YEARS, RESIDING AT NO.648, “SAINILAYA”, 2ND MAIN, 7TH BLOCK, II PHASE, BSK 3RD STAGE, BENGALURU – 560 085.
2. SHRI PRASHANTH PARAMESWARAPPA HALASABALU, S/O SRI PARAMESWARAPA Y G, AGED ABOUT 41 YEARS, RESIDING AT NO.2345, 9TH MAIN, M.C.C. ‘A’ BLOCK, NEAR VISHWA BHARATI VIDYA PEETA, DAVANAGERE – 577 004.
3. SHRI VISHAK JAGADEESH KUMAR, S/O SRI JAGADEESH K S., AGED ABOUT 25 YEARS, RESIDING AT NO.778, 10TH MAIN ROAD, 2ND STAGE, INDIRANAGAR, BENGALURU – 560 038.
4. SMT KEERTHI SRI JAGADEESH KUMAR, W/O SRI RAGHAVENDRA RAMNATH, AGED ABOUT 28 YEARS, RESIDING AT NO.778, 10TH MAIN ROAD, 2ND STAGE, INDIRANAGAR, BENGALURU – 560 038. … PETITIONERS (BY MR.SATISH D.B., ADVOCATE) AND:
1. SHRI SHANKAR DEVAR, DIRECTOR, PINAKIN ENERGY PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT NO.16/8, GROUND FLOOR, 2ND CROSS, GUPTA LAYOUT, SOUTH END CIRCLE, BASAVANAGUDI, BENGALURU – 560 004.
2. SMT SAROJ SHANKAR DEVAR, DIRECTOR, PINAKIN ENERGY PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT NO.16/8, GROUND FLOOR, 2ND CROSS, GUPTA LAYOUT, SOUTH END CIRCLE, BASAVANAGUDI, BENGALURU – 560 004.
3. PINAKIN ENERGY PRIVATE LIMITED HAVING ITS REGISTERED OFFICE AT NO.16/8, GROUND FLOOR, 2ND CROSS, GUPTA LAYOUT, SOUTH END CIRCLE, BASAVANAGUDI, BENGALURU – 560 004.
REPRESENTED BY ITS MANAGING DIRECTOR, SRI SHANKAR DEVAR.
(BY MR.RUDRAPPA P., ADV. FOR R1 TO R3) … RESPONDENTS THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO A) APPOINT AN ARBITRATOR TO REDRESS THE EXISTING DISPUTE BETWEEN THE RESPONDENTS AND THE PETITIONERS UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996.
B) APPOINT ANY ARBITRATOR TO RESOLVE THE DISPUTE EXISTING BETWEEN THE PETITIONERS AND RESPONDENTS PRODUCED AT ANNEXURE-A.
C) GRANT SUCH OTHER RELIEF/S AS THIS HON'BLE COURT MAY DEEM FIT TO GRANT TO THE PETITIONERS UNDER THE CIRCUMSTANCES OF THE CASE WITH COSTS OF THESE PROCEEDINGS.
THIS PETITION COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER Sri.Satish.D.B, learned counsel for the petitioner.
Sri.Rudrappa.P, learned counsel for the respondent Nos.1 to 3.
2. The Petition is admitted for hearing. With consent of the parties, the same is heard finally.
3. By means of this petition filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’ for short), the petitioners interalia seek resolution of the dispute through appointment of an arbitrator.
4. Facts giving rise to filing of this petition briefly stated are that admittedly, the parties had entered into a memorandum of understanding on 26.06.2015. Clause 20 of the aforesaid memorandum of understanding contained an Arbitration clause. It is also not in dispute that the petitioners have sent notice on 20.10.2016 invoking the arbitration clause. However, no action as sought for by the petitioners was taken by the respondent.
5. I have heard the learned counsels for the parties at length.
6. Learned counsel for respondent submitted that the memorandum of understanding is not an agreement.
7. I have considered the aforesaid submission. zAdmittedly, the document dated 26.06.2015 which contains certain terms and conditions is in writing and has been duly signed by the parties.
8. The aforesaid document by any stretch of imagination can not be said to be an agreement. By considering the fact that the parties have entered into a memorandum of understanding dated 26.06.2015 and the petitioners have invoked the arbitration clause, I deem it appropriate to appoint Mr.D.Krishnappa, a retired District and Sessions Judge, as sole arbitrator to adjudicate the dispute.
9. A copy of this order be dispatched to the Arbitration Centre, Khanija Bhavan, Bengaluru for necessary action in that regard. Learned counsel for the petitioners to also approach the Arbitration Centre with the relevant papers to be filed therein. The learned Arbitrator appointed herein shall thereupon enter reference and proceed with the matter in accordance with law and the Rules governing the Arbitration Centre.
Accordingly, petition is disposed of.
Sd/- JUDGE BNV