IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF FEBRUARY, 2019 BEFORE THE HON’BLE MR.JUSTICE ALOK ARADHE C.M.P.No.150/2017 BETWEEN:
Smt. Santoshi Hegde, W/o Abhishek Madhyastha, Aged about 33 years, Residing at No.307, 11th Block, VBHC Apartment, Chandapura, Bangalore – 562 106. … PETITIONER (By Sri T.S.Venkatesh, Adv.) AND:
M/s. Dreamz Infra India Ltd., A company incorporated under the Companies Act, Having its office at No.577/B, 2nd Floor, Outer Ring Road, Teachers Colony, Koramangala, Near Silk Board, Bangalore – 560 034, Represented by its Managing Director, Ms. Disha Choudhary. … RESPONDENT This civil miscellaneous petition is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996, praying to appoint any competent person/retired District Judge or Arbitrators empanelled in the panel of arbitrators.
This petition coming on for admission, this day, the Court made the following:
ORDER The petition is admitted for hearing and the same is heard finally.
2. By means of this petition under Section 11 of the Arbitration & Conciliation Act, 1996 (hereinafter referred as ‘the Act’, for short), the petitioner inter alia seeks appointment of a sole arbitrator to adjudicate the dispute that has arisen between the petitioner and the respondent.
3. Facts giving rise to the filing of this petition briefly stated are, that the respondent is a company registered under the Companies Act, 1956. The respondent is the owner and developer of the property measuring 9,600 sq. ft. situated in Roopena Agrahara village, Bengaluru South Taluk. The respondent had entered into an agreement of sale and a construction agreement with the petitioner to construct and sell Flat No.405 in 4th floor. Clause 14 of the construction agreement contains an arbitration clause. Admittedly, the dispute between the parties has arisen thereafter. The petitioner sent a notice to the respondent on 04.05.2017. However, no response was received from the respondent. In the aforesaid factual background, this petition has been filed.
4. I have heard the learned Counsel for the petitioner at length.
5. Clause 14 of the construction agreement dated 17.05.2016 reads as under:
“14. Arbitration In the event of any dispute or difference arising between the parties hereto which cannot be resolved amicably, the parties shall appoint an arbitrator with mutual consent and the said arbitrator shall resolve the dispute or differences in accordance with the Indian Arbitration and Conciliation Act, 1996, and any statutory modifications thereof. The parties hereto agree to act promptly without causing delay in the resolution of disputes or differences. The Courts of Bangalore alone will have the jurisdiction over the dispute if any arising out of this Agreement.
It is hereby agreed between the parties, that the First Party shall have absolute power to construct other Apartments proposed on the Schedule ‘A’ property together with facilities, amenities, open/covered car parking spaces including swimming pool on behalf of the other purchaser/s or otherwise on such terms and conditions at its absolute discretion. The Second Party shall not be entitled to seek partition or division or separate possession of Schedule ‘C’ Property.
The Second Party shall not call in question the building rate, allotment or sale consideration of the other undivided interest in the land sold or the apartments constructed or the apartments together with the land sold or to the construction and allotment for a covered or uncovered spaces in Schedule ‘A’ Property.”
6. Thus, it is evident that in the event of any dispute or difference arising between the parties, the dispute has to be resolved in accordance with the provisions of the Act.
7. The petitioner has served the notice dated 04.05.2017 which has not received any response from the respondent. Despite notice being served, the respondent is unrepresented.
8. In the fact situation of the case and having taken into account the arbitration clause contained in the construction agreement, I deem it appropriate to appoint Mr. M.Nagarajan, Ex-CAT Member, as the sole arbitrator to adjudicate the dispute between the parties. Office is directed to transmit the copy of this order to Mr. M.Nagarajan. Accordingly, petition is disposed of.
Sd/- JUDGE KK