IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF OCTOBER, 2019 BEFORE THE HON’BLE MR. JUSTICE B. VEERAPPA CIVIL MISCELLANEOUS PETITION NO.131/2015 BETWEEN:
1. Mr.Ramesh K.R., S/o Mr.Range Gowda, Aged about 38 years, 2. Mrs.Jaya Bharati Chandran, W/o Ramesh K.R., Aged about 33 years, Both are Permanent resident of Premises in No.31, 3rd cross, 3rd ‘B’ Main, Someshwara Nagar, Yelahanka New Town, Bangalore – 560 065.
Represented by their Power of Attorney, Mr.Gunti Ravi Venugopal, S/o Mr.Gunti Venkata Ramaiah, Aged about 44 years, Residing at No.A-103, Krishna Diamond, No.47/2, A Block, Shakara Nagar, Bangalore – 560 092.
…Petitioners (By Sri Thontadharya R.K., Adv.) AND:
1. Mr.Munianjanappa, S/o late Munihanumanthappa, No.29, Government School Road, Jakkur, Bangalore – 560 064.
2. Mr.M.H.Nagaraj, S/o late Munihanumanthappa, Resident of Nagaraj Complex, 2nd Main, 1st Cross, Narayanapura, Dharwad – 580 008.
3. Mr.M.H.Shamanna, S/o late Munihanumanthappa, Resident of Choudanahalli Village, Kundana Hobli, Hegganahalli Post, Devanahalli Taluk, Bangalore Rural District – 562 110.
4. M/s.Madhavi Assets Pvt. Ltd., With its Office at No.289, 1st Floor, 15th Main, R.M.V.Extension, Bangalore – 560 080.
5. M/s.Metrocorp, A Registered Partnership Firm, Office at No.17,Jayamahal Main Road, Bangalore – 560 046.
Represented by its Partner, Mr.Deepak Krishnappa.
And also known as M/s. METROCORP Housing Corporation Pvt. Ltd., [Earlier known as M/s. Metrocorp], Office at No.17, Jayamahal Main Road, Bangalore – 560 046.
... Respondents (By Sri. H.N.Shashidhara, Adv., for R1 to R4; Sri. D.R.Ravishankar, Advocate for R5) ***** This Civil Miscellaneous Petition is filed under Section 11 of the Arbitration and Conciliation Act, 1996, praying to appoint Mr.Kukkeje Ramakrishna Bhat, a retired District and Sessions Judge, Office at No.F-114, 4th Floor, Central Chambers, 2nd Main, Gandhinagar, Bengaluru – 560 009, as Sole arbitrator for adjudication of the dispute between the petitioners and respondents as regards enforcement of the Sale Agreement dated 17/05/2006 and execution of the Sale Deed for the Schedule B Property and to pass such other orders as deemed fit to be granted in the facts and circumstances of the case to serve the interest of justice and equity.
This Civil Miscellaneous Petition coming on for Admission, this day, the Court made the following:
O R D E R The above Civil Miscellaneous Petition is filed under Section 11 of the Arbitration and Conciliation Act, 1996, for appointment of sole arbitrator to adjudicate the dispute in terms of clause 17 of the sale agreement dated 17.05.2006 entered into between the parties.
2. It is the case of the petitioners that respondents 1 to 5 have executed agreement to sell dated 17.05.2006 agreeing to transfer residential plot bearing No. G-100 (BIAAPA Plot No.181) measuring 2200 square feet (B schedule property) in the layout known as ‘Metro Corp. Nirvana’ in Sy.Nos. 94 to to 98 of Elthore village, Kundana Hobli, Devanahalli taluk, Bangalore Rural District. At the time of execution of sale agreement respondents 1 to 3 were the absolute owners of the lands which is more fully described in the schedule `A’ property and they had executed Joint Development Agreement in favour of fourth respondent for development of the schedule `A’ property. The fourth respondent in turn entered into a Deed of Assignment dated 5th August, 2005, with the fifth respondent assigning all its rights vested under the Joint Development Agreement/Power of Attorney. The petitioners have also entered into sale agreement with the fifth respondent for the purchase of the site and engage the services of the fifth respondent as a contractor and enter into Construction Agreement/Facilities Agreement for construction of villa and development of the layout.
3. It is the further case of the petitioners that in performance of their obligations, they paid Rs.18,47,804/- towards cost of the land, Rs.21,47,429/- towards cost of construction and towards infrastructure facilities in the layout and they were always ready and willing to pay the balance amount in terms of the agreements. The petitioners repeatedly requested the fifth respondent for causing execution/registration of the sale deed in their favour, but the fifth respondent refused to convey the residential plot for one reason or the other.
4. It is the further contention that under clause 17 of the sale agreement dated 17th May, 2006, in the event of breach of the terms of the agreement or in the event of any differences or disputes arising between the parties in regard to the agreement or any matter relating thereto, the same shall be referred to a sole arbitrator. Therefore, the petitioners issued legal notice dated 7th July, 2014 to the respondents. The notice issued to the fifth respondent was returned unserved with a shara “left the address”. Therefore, the petitioners are before this Court.
5. The respondents have not filed objections.
6. I have heard the learned counsel for the parties to the lis.
7. Sri. Thontadharya R.K., learned counsel for the petitioners, reiterating the contentions made in the Civil Miscellaneous Petition, contended that there is no dispute with regard to execution of agreement to sell dated 17.05.2006 entered into between the parties and there exists clause 17 for arbitration in the case of any disputes arising between the parties. The petitioner has also caused the legal notice dated 7th July, 2014. Therefore, he sought to allow the civil miscellaneous petition.
8. Per contra, Sri. H.N.Shashidhara, learned counsel appearing for respondents 1 to 4 has not disputed the agreement and existence of clause 17 of the sale agreement and fairly submits that sole arbitrator may be appointed. His submission is placed on record.
9. In view of the above, the Civil Miscellaneous Petition is allowed. Sri. N.Narayana, former District Judge is appointed as sole arbitrator to adjudicate the dispute between the parties in terms of clause 17 of the agreement dated 17.05.2006 entered into between the parties.
The Registry is directed to send a copy of this order to Sri N.Narayana, former District Judge as well as to the Arbitration Centre for reference forthwith.
Sd/- JUDGE Mgn/-