MISC. Petition No. 102 of 2023 · The High Court
Case Details
- 1 - NC: 2025:KHC:12616 CMP No. 102 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 102 OF 2023 BETWEEN: 1. H. MANJUNATH S/O LATE HANUMANTHA REDDY AGED ABOUT 59 YEARS ENGINEER AND CONTRACTOR OFFICE AT No. 797 ‘D’ 6TH CROSS, 10 MAIN INDIRANAGAR 2ND STAGE BANGALORE-560 038. (BY SRI. BHARATH KUMAR VINDHYALA, ADVOCATE) …PETITIONER
Legal Reasoning
Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA AND: 1. B.T.L. EDUCATIONAL TRUST
Legal Reasoning
FOR RURAL DEVELOPMENT HAVING REGISTERED UNDER INDIAN TRUST ACT NO 259/B, BOMMASANDRA INDUSTRIAL AREA, HOSUR ROAD BANGALORE-560 099. REPRESENTED BY ITS ADDITIONAL SECRETARY SRI. H.D. RANGANATH (BY SRI. R. SHIVCHARAN, ADVOCATE) …RESPONDENT THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996, - 2 - NC: 2025:KHC:12616 CMP No. 102 of 2023 TO SOLE APPOINT ARBITRATOR TO A PRAYING ADJUDICATE/RESOLVE THE DISPUTES AND DIFFERENCES ARISEN BETWEEN THE PETITIONER AND THE RESPONDENT IN RELATION TO THE CLAUSE 53.2 OF THE ARTICLES OF AGREEMENT DATED 30.01.2015 VIDE ANNEXURE-A EXECUTED TO THE PETITIONER BY THE RESPONDENT FOR 3RD FLOOR OF BOYS HOSTEL BUILDING FOR TRUST AT NO. 259/B, BOMMASANDRA ROAD, BANGALORE AS PER TENDER DOCUMENT IN THE INTEREST OF JUSTICE AND EQUITY. INDUSTRIAL HOSUR AREA, THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: 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 for the appointment of an Arbitrator to resolve the dispute between the petitioner and respondent in terms of Clause 53.2 of the Articles of Agreement dated 30.01.2015. 2. Brief facts leading rise to the filing of this petition are as follows: The petitioner is a Civil Engineer and registered as a Class-I Civil Contractor. The respondent runs an Educational Institution in and around Bengaluru City and - 3 - NC: 2025:KHC:12616 CMP No. 102 of 2023 other cities. The respondent trust floated a tender Notification inviting tender/s for the construction of the 3rd floor of the Boys Hostel Building for trust at No.259/B, Bommasandra Industrial Area, Hosur Road, Bengaluru, as specified in the tender document. The petitioner was the successful bidder for the construction of the said building for an amount of Rs.87,19,387/-. 3. The respondent trust executed the Articles of Agreement dated 30.01.2025 in favour of the petitioner with the terms and conditions mentioned thereof. The petitioner on deliberations and negotiations, gave a rebate @ 2.5% on tender cost vide letter dated 23.01.2025. The petitioner, pursuant to the Articles of Agreement, started the construction as per the respondent trust’s specifications. The petitioner carried out the construction work as agreed. The petitioner completed the works worth Rs.58,27,074/- but, the respondent trust paid only Rs.33,00,000/- as on 02.11.2015 and undertook to pay the balance amount of Rs.25,27,075/- to the petitioner at - 4 - NC: 2025:KHC:12616 CMP No. 102 of 2023 the earliest. The respondent trust did not pay the outstanding dues of Rs.57,11,189.50. 4. The respondent trust breached the terms of the Articles of agreement dated 30.01.2025. The petitioner issued a demand notice dated 28.11.2019 to the respondent trust, to proceed legally to recover outstanding dues and clear EMD and Security deposit. After receiving notice, the respondent approached the petitioner, and requested two months time to clear the outstanding dues. Despite, granting time, the respondent trust did not release the payment towards the outstanding dues etc. Due to the act of the respondent trust, the petitioner has suffered monetary loss and undergone mental agony. 5. The petitioner invoked Arbitration Clause vide Clause No.53.2 by issuing an arbitration notice dated 06.12.2022 calling upon the respondent to give consent to nominate, and appoint an Arbitrator. The respondent neither replied nor complied with a notice. Hence, the petitioner has no other alternative remedy, except filing - 5 - NC: 2025:KHC:12616 CMP No. 102 of 2023 this petition. The respondent, despite granting sufficient opportunity, did not file his statement of objections. 6. Heard the arguments of the learned counsel for the petitioner. Perused the records. 7. The point, that arises for consideration is, as follows: “Whether the petitioner made out a ground to refer the dispute to the Arbitration in terms of clause 53.2 of the Articles of Agreement dated 30.01.2015 as per the provisions of Arbitration and Conciliation Act, 1996?” 8. It is not disputed that the respondent floated a tender for the construction of the 3rd floor of the boys hostel building for trust at No.259/B, Bommasandra Industrial Area, Bengaluru for Rs.87,19,387/-. The petitioner was a successful bidder. After due deliberations, the petitioner agreed to give a 2.5% rebate to the respondent trust. The petitioner and respondent’s trust executed the Articles of Agreement on 30.01.2015. The petitioner completed the works worth Rs.58,27,074/- The - 6 - NC: 2025:KHC:12616 CMP No. 102 of 2023 respondent trust paid Rs.33,00,000/-only as on 02.11.2015 and undertaken to pay the balance amount of Rs.25,27,075/- to the petitioner. Despite the verbal request made by the officials of the respondent trust, the respondent trust did not release the amount of Rs.25,27,075/-. The petitioner issued a demand notice on 28.11.2019 to the respondent trust for release of outstanding dues, EMD amount and security deposit. Despite the service of a legal notice, the respondent trust did not repay the amount. 9. The petitioner invoked the Arbitration Clause vide Clause No.53.2 of the Articles of Agreement dated 30.01.2015, which reads as follows: “When the contractor dissatisfied with the decisions of the chairman, Building Committee the contractor is required to give a notice to the employer within 30 days of the receipt of such a decisions for the appointment of Arbitrator for the settlement of dispute in accordance with the Arbitration and Conciliation Act, 1996.” 10. The dispute and differences in regard to the payment of the said amount in relation to the Articles of - 7 - NC: 2025:KHC:12616 CMP No. 102 of 2023 Agreement have arisen between the petitioner and respondent. Admittedly, there is an Arbitration Clause to resolve the dispute, arisen between the petitioner and the
Decision
respondent. In view of the above discussions, I answer the point for consideration in the affirmative. 11. Accordingly, I proceed to pass the following: ORDER (i) The Civil Miscellaneous Petition is allowed. (ii) Hon’ble Justice Sri. Krishna Bhat, Former Judge, High Court of Karnataka, is appointed as the sole Arbitrator to resolve the dispute between the petitioner and the respondent in terms of Clause 53.2 of the Articles of Agreement as per the provisions of the Arbitration and Conciliation Act, 1996. (iii) The office is directed to forward the copy of this order to the learned Arbitrator and the Arbitration and Conciliation Centre, Bengaluru. BVK; List No.: 1 Sl No.: 14 Sd/- (ASHOK S.KINAGI) JUDGE