M/S PHONEPE PRIVATE LIMITED v. ANIL KUMAR

(BY SRI. KASHYAP N NAIK AGRAA LEGAL., ADVOCATE) …PETITIONER AND: ANIL KUMAR SOLE PROPREITOR OF SMART CAFTERIA AGED 24 YEARS, S/O JAYASAGAR BHAGAT, HAVING HIS OFFICE AT EIDGAON CHOWARSTA NIRMAL, ADILABAD TELEGANA - 504106 (V/O DTD 22.7.2024 RESPONDENT SERVED THROUGH EMAIL) …RESPONDENT THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11 (6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT SRI. V.V. ANGADI (RETD. DISTRICT JUDGE), OR ANY Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023 OTHER PERSON THAT THIS HONBLE COURT MAY DEEM FIT, AS THE SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES THAT HAVE ARISEN BETWEEN THE PARTIES UNDER CLAUSE 16 (1) OF THE TERMS AND CONDITIONS DATED 21.02.2019 GOVERNING THE PETITIONERS SERVICES (ANNEXURE A), IN THE INTEREST OF JUSTICE AND EQUITY. IN CMP No.72/2023 BETWEEN: M/S PHONEPE PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT 2013 HAVING ITS CORPORATE OFFICE AT OFFICE-2, FLOOR 4,5,6,7 WING A, BLOCK A, SALARPURIA SOFTZONE, SERVICE ROAD, GREENGLEN LAYOUT, BELLANDUR, BANGALORE - 560103, REP BY ITS AUTHORIZED SIGNATORY VIJAY ARORA (BY SRI. KASHYAP N NAIK AGRAA LEGAL., ADVOCATE) …PETITIONER AND: ANIL KUMAR SOLE PROPREITOR OF ‘MY VILLAGE’ RESTAURANT AGED ABOUT 24 YEARS, S/O JAYASAGAR BHAGAT, HAVING HIS OFFICE AT EIDGAON CHOWARSTA NIRMAL, ADILABAD TELEGANA - 504106 (V/O DTD 22.7.2024 RESPONDENT IS SERVED THROUGH EMAIL) (ORDER PASSED …RESPONDENT IN CMP 71/2023) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11 (6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT SRI. V.V. ANGADI (RETD. DISTRICT JUDGE), OR ANY OTHER PERSON THAT THIS HONBLE COURT MAY DEEM FIT, AS THE SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES THAT HAVE ARISEN BETWEEN THE PARTIES UNDER CLAUSE 16 (1) OF THE TERMS AND CONDITIONS DATED 26.04.2019 GOVERNING THE - 3 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023 PETITIONERS SERVICES (ANNEXURE A), IN THE INTEREST OF JUSTICE AND EQUITY. IN CMP No.73/2023 BETWEEN: M/S PHONEPE PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT 2013 HAVING ITS CORPORATE OFFICE AT OFFICE-2, FLOOR 4,5,6,7 WING A, BLOCK A, SALAPURIA SOFTZONE, SERVICE ROAD, GREENGLEN LAYOUT, BELLANDUR, BANGALORE - 560103, REP BY ITS AUTHORIZED SIGNATORY VIJAY ARORA (BY SRI. KASHYAP N NAIK AGRAA LEGAL.,ADVOCATE) …PETITIONER AND: ANIL KUMAR SOLE PROPREITOR OF SMART CAFETERIA AGED ABOUT 24 YEARS, S/O JAYASAGAR BHAGAT, HAVING HIS OFFICE AT EIDGAON CHOWARSTA NIRMAL, ADILABAD TELEGANA - 504106 (V/O DTD 22.7.2024 RESPONDENT IS SERVED THROUGH EMAIL) (ORDER PASSED …RESPONDENT IN CMP 71/2023) THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11 (6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT SRI. V.V. ANGADI (RETD. DISTRICT JUDGE), OR ANY OTHER PERSON THAT THIS HONBLE COURT MAY DEEM FIT, AS THE SOLE ARBITRATOR TO ADJUDICATE THE DISPUTES THAT HAVE ARISEN BETWEEN THE PARTIES UNDER CLAUSE 16 (1) OF THE TERMS AND CONDITIONS DATED 01.05.2019 GOVERNING THE PETITIONERS SERVICES (ANNEXURE A), IN THE INTEREST OF JUSTICE AND EQUITY. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 4 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023 CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI ORAL ORDER This civil miscellaneous petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996. It is the case of the petitioner that the petitioner is a leading third party application provider authorized by the National Payments Corporation of India and is inter alia engaged in the business of providing a digital payment platform through its Phonepe app, facilitating online payments as a system provider and other payment related technology solutions enabling its users and merchants to make and receive payments through various modes such as Unified Payments Interface, credit cards, debit card, wallet, etc. under the brand name ‘Phonepe’.

2. An agreement came to be executed between the petitioner and the respondent and as per the subject to the certain terms and conditions which form a binding contract between the parties, the respondent is engaged in the hospitality industry and operates a few restaurants and cafes in Telangana, including a beverage outlet in the name and style of 'Lassi Shop'. The respondent registered his proprietorship - 5 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023 concern - Lassi Shop as a merchant on the petitioner's platform on 21.02.2019. The petitioner contended that the respondent has miss utilized the petitioner's platform and cause the petitioner to make a payment to 3rd parties on behalf of the respondent and fail to repay such amount to the petitioner. The respondent had expressly agreed the terms and conditions of the petitioner's platform which form a binding contract between the parties and which contain an Arbitration clause. The petitioner had issued a legal notice to the respondent under Section 11 Sub-Section 5 of the Arbitration and Conciliation Act, 1996, as per annexure-C on 27.05.2020. The respondent did not respond to the legal notice under Section 11 sub- section 5 of the Arbitration and Conciliation Act, 1996. Hence, the petitioner has filed the civil miscellaneous petition under Section 11(6) of the Arbitration and Conciliation Act, 1996. Though notice issued to the respondent through e-mail by the learned counsel for the petitioner, none appears for the respondent.

3. Heard learned counsel for the petitioner. Learned counsel for the petitioner submits that an agreement came to be executed in between the petitioner and the respondent and - 6 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023 there exist an Arbitration clause and the agreement and notice was issued to the respondent nominating Sri. V.V. Angadi as an arbitrator. In spite of service of notice, the respondent had neither replied nor concentrated to nominate Sri. V.V. Angadi retired District Judge as a arbitrator. Hence, cause of auction arouses for the petitioner to file this petition. Hence, he prays to allow the miscellaneous petition.

4. Perused the records, considered the submissions of learned counsel for the parties. The point that arises for consideration is that 'Whether the petitioner has made out a case to refer the matter for arbitration under Section 11(6) of the Arbitration and Conciliation Act, 1996. It is not in dispute that there is an agreement executed in between the petitioner the respondent on 21.02.2019 (Annexure-B). The petitioner has produced the copy of the agreement marked as Annexure-A1. This Court has perused the copy of the terms and conditions of an agreement. Clause 16 of the agreement provides general provident that is dispute resolution which reads as under: "Dispute resolution - In the event of a dispute or difference between the parties hereto, arising at any - 7 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023 time out of this Agreement or in any clause or thing contained herein, or the rights, duties, liabilities and obligations of the parties hereto in relation to the agreement or otherwise arising out of or in connection with this Agreement, the parties shall first endeavour to settle the same amicably. In the event of a failure to settle the dispute amicably within 30 (thirty) days from the date on which a notice of dispute containing the substance of the dispute is issued by one party to the other party, the same shall be referred to arbitration before a sole arbitrator to be appointed mutually by the parties. All such arbitration proceedings shall be conducted in English and held in Bangalore as per the Arbitration and Conciliation Act, 1996, as amended from time."

5. Arbitration clause indicates that if any dispute arises in relation to the agreement, the same shall be referred to arbitration. The dispute arose between the petitioner and the respondent, hence, the petitioner has issued a notice on

27.05.2020 vide Annexure-C, calling upon the respondent to give consent for appoint of nominee Sri. V.V. Angadi as an arbitrator. The respondent has not replied to any of the correspondents

6. Admittedly, the there is an agreement executed between the petitioner and the respondent and also there is existence of an arbitration clause. Thus the petitioner has made out a ground to refer the matter to the Arbitration to arbitrate the dispute between the petitioner and the respondent. - 8 - NC: 2024:KHC:30786 CMP No. 71 of 2023 C/W CMP No. 72 of 2023 CMP No. 73 of 2023

7. I proceed to pas the following: ORDER i) Civil Miscellaneous petition is allowed; ii) Sri. V. V. Angadi, a retired District Judge is appointed as the sole arbitrator to arbitrate the dispute between the plaintiff and respondent; iii) Registry is directed to forward copy of this order to Sri. V. V. Angadi, retired District Judge, at the earliest. Sd/- (ASHOK S.KINAGI) JUDGE PNV List No.: 1 Sl No.: 2