IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF FEBRUARY 2019 BEFORE THE HON’BLE MR.JUSTICE ALOK ARADHE C.M.P.NO.267 OF 2017 BETWEEN:
SHREYAS TRUST A REGISTERED PRIVATE TRUST HAVING ITS OFFICE OF REGISTRATION AT No.3, CHURCH ROAD, BASAVANAGUDI, BENGALURU – 560 004.
REPRESENTED BY ITS MANAGING TRUSTEE SMT.S.GAYATHRI W/O SRI.K.V.SHIVAKUMAR (BY SRI. V.B,SHIVAKUMAR, ADV.) … PETITIONER AND:
1. SRI.SACHIDANANDA SHIVACHARYA SWAMY MATADHIPATI OF KARISIDDA ODEYAR MUTT, No.3, DIWANKHANA LANE, CHICKPET, BENGALURU-560 053.
2. SRI.L.R.KAMATH AGED ABOUT 56 YEARS S/O LATE R.T.KAMATH M/s.KAMATH CAFÉ, “SRIRANGAM”, No.4/4, CRESCENT ROAD, BENGALURU – 560 001.
...RESPONDENTS THIS C.M.P. IS FILED UNDER SECTION 11(6) & (8) OF THE ARBITRATION AND CONCILATION ACT, 1996, PRAYING TO CONSIDER APPOINTMENT OF AN IMPARTIAL ARBITRATOR FOR THE PURPOSES OF ADJUDICATION AS PER MEMORANDUM OF AGREEMENT VIDE ANNEXURE-C DATED 02.01.1990 AND DISPOSAL OF THE ARBITRAL DISPUTE, IN THE INTEREST OF JUSTICE.
THIS C.M.P. COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R Mr. V.B.Shivakumar, learned counsel for the Petitioner.
Mr.B.C.Chetan, learned counsel for Respondent No.1 and Mr.S.Ganesh Shenoy, learned counsel for Respondent No.2.
The petition is admitted for hearing. With the consent of the learned Counsel for the parties, the same is heard finally.
2. By means of this petition under Section 11 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to 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 Respondents.
3. The facts giving rise to the filing of this petition are briefly stated that the parties have entered into a Memorandum of Agreement dated 02.01.1990. Clause- 11 of the aforesaid Agreement admittedly contains that the dispute between the parties had to be adjudicated by arbitration. The said clause-11 reads as under:-
“11. It is further agreed that if any dispute arise between the parties to this Agreement either in regard to payment of rental to the First party by Second and Third parties jointly or about distribution on the amounts among Second and Third parties, the matter shall be referred to Sri.Vijaya Shankar, Advocate and Sri.G.S.Bhat, Advocate for Arbitration and the decision of the Arbitrators shall be binding on all parties. In the event of the Arbitrators differing in their opinion, the matter shall be referred to Sri.K.R.D.Karanth, Advocate, whose decision shall be the final and binding on all the parties to this Agreement”.
4. The petitioner sent a Notice dated 23.12.2015 for appointment of an Arbitrator by which, name of Mr.S.R.Krishna Kumar, Advocate was proposed as a sole Arbitrator to adjudicate the dispute between the parties. However, the Respondent by a communication dated 22.01.2016 suggested the name of Mr.Subash Gogi, a former retired District Judge. However, during the pendency of these proceedings, unfortunately, Mr.Subash Gogi has expired.
5. When the matter was taken up today, learned counsel for the parties have jointly submit that the matter may be referred for arbitration and sole arbitrator be appointed to adjudicate the dispute arisen between the parties.
6. Learned counsel for the Respondents submitted that they may be given liberty to raise all objections before the sole arbitrator as are permissible under the law.
7. In view of the preceding analysis, the petition filed by the petitioner under Section 11(6) of the Act succeeds and is hereby allowed. In view of the aforesaid submissions and as prayed by the learned counsels for the parties, Mr.G.Raghavendra Rao, Retired District Judge is appointed as sole Arbitrator to adjudicate the dispute between the parties.
A copy of this order be dispatched to the Arbitration Centre, Khanija Bhavan, Bengaluru, for necessary action in that regard. Learned counsel for the petitioner 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 Srl.