PRAYING TO APPOINT A RETIRED, JUSTICE VISHWANATH v. ANGADI, AS THE SOLE ARBITRATOR TO ADJUDICATE ALL CLAIMS, DISPUTES BETWEEN
Case Details
- 1 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 133 OF 2025 BETWEEN: GHODAWAT ENTERPRISES PVT. LTD., A COMPANY INCORPORATED UNDER COMPANIES ACT, 2013, HAVING REGISTERED OFFICE AT 438, A/P - CHIPRI, POST JAYSINGPUR, TAL SHIROL, DIST KOLHAPUR, MAHARASHTRA - 416 101. ALSO, HAVING CORPORATE OFFICE AT, PLOT 13-A-P2, KIADB HI TECH DEFENSE AND AEROSPACE PARK, (IT SECTOR), BENGALURU - 562 149, REPRESENTED BY CEO AND AR, SIMRAN SINGH TIWANA ALSO AVP FINANCE AND AR RAJIT A. …PETITIONER (BY SMT. HARSHITHA SURESH, ADVOCATE FOR SRI. VAMSHI KRISHNA C, ADVOCATE) AND:
Legal Reasoning
MS. SHRUTHI. S AGED 35 YEARS, DAUGHTER OF SRIDHARAN B.L, RESIDING AT NO. 89/4, NEAR S V SCHOOL, COCONUT GARDEN, T DASARAHALLI, BENGALURU - 560 057 Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR ALSO AT, NO. 8, 1ST CROSS, 1ST MAIN, DURGA DEVI LAYOUT, VIDYARANYAPURA, BENGALURU - 560 097. …RESPONDENT (RESPONDENT SERVED) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT., 1996, PRAYING TO APPOINT A RETIRED, JUSTICE VISHWANATH V. ANGADI, AS THE SOLE ARBITRATOR TO ADJUDICATE ALL CLAIMS, DISPUTES BETWEEN THE PARTIES ARISING OUT OF THE CLAUSE 4.33 OF THE APPOINTMENT LETTER DATED 3.04.2022 (ANNEXURE- A) IN ACCORDANCE WITH THE PROVISIONS OF PROCEDURE OF THE ARBITRATION AND CONCILIATION ACT, 1996, INCLUDING ANY AMENDMENTS THEREOF. 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 (‘the Act, 1996’ for brevity) for the appointment of an Arbitrator to resolve the disputes between the parties arising out of the Clause 4.33 of the Appointment letter dated 03.04.2022 vide Annexure-A as per the provisions of the Arbitration and Conciliation Act, 1996 and Rules. - 3 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR 2. Brief facts, leading rise to the filing of this petition are as follows: The respondent was appointed as an employee in the petitioner's company vide appointment letter dated 03.04.2022 for the post of Senior Manager (Instructor or Auditor) effective from 03.04.2023. The respondent had executed an indemnity bond on 17.04.2023, wherein the respondent had agreed and undertaken to serve the petitioner's company for a minimum period of two years from 03.04.2023, failing which, the respondent is bound to pay to the petitioner's company an amount of Rs.2,00,000/- as compensation. The respondent tendered resignation without any prior notice as mentioned in Clause 4.8(i) of the appointment letter dated 03.04.2022 and self declared that her last working day shall be 08.04.2025. The petitioner issued a notice to the respondent calling upon to resume her duties with the petitioner's company on 02.05.2024. The respondent replied vide email reiterating everything as mentioned in - 4 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR her resignation and refused to resume back to the work. The petitioner issued a rejoinder to the reply. At this point receipt of the rejoinder, the respondent did not come forward to resume the duties. The petitioner issued a notice calling upon the respondent to pay Rs.2,00,000/- towards compensation for breach of the terms and conditions of an appointment order. The petitioner invoked an arbitration clause by issuing a notice on 19.08.2024. The respondent did not reply to the arbitration notice. Hence, this petition. 3. The notice was issued to the respondent. Despite service of notice, the respondent remained unrepresented. 4. Heard the arguments of learned counsel for the petitioner. 5. Learned counsel for the petitioner submits that the respondent was an employee of the petitioner and issued an appointment order dated 03.04.2022 for a - 5 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR period of two years and executed an indemnity bond and undertook to serve the petitioner's company for a period of two years. The respondent, before the expiry of two years, tenders a resignation and thus, there is a breach of the terms and conditions for an appointment order. The petitioner is entitled to compensation of Rs.2,00,000/-. He submits that there is an arbitration clause in the appointment order and the petitioner invoked an arbitration clause by issuing a notice. The respondent did not reply to the arbitration notice. Hence, he prays to allow the petition. 6. Perused the records, and considered the submissions of the learned counsel for the petitioner. 7. The point, that arises for consideration is as follows: “Whether the petitioner made out a ground to refer the dispute to the Arbitrator in terms of Clause 4.33 of the appointment order dated 03.04.2022 vide Annexure-A, as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules?” - 6 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR 8. There is no dispute that the respondent is the employee of the petitioner’s company and the petitioner has issued an appointment letter dated 03.04.2022 for a period of two years, and it was agreed that the respondent will serve the petitioner’s company for a period of two years and executed an indemnity bond. The petitioner submitted a resignation dated 07.04.2024 i.e., before the expiry of two years from 03.04.2023. The petitioner issued a legal notice calling upon the respondent to resume the duties. 9. The respondent replied to the legal notice via email. The petitioner issued a rejoinder to the reply notice. Thereafter, the petitioner invoked an arbitration clause which reads: "4.33 Dispute Resolution: If any dispute, difference or claim arises between the Parties in connection with this Agreement or the validity, interpretation, implementation or alleged breach of this Agreement or anything done or committed to be done pursuant to this Agreement the Parties shall refer the dispute, difference or claim for resolution to a sole arbitrator jointly appointed by the Parties and such arbitration shall be in accordance with the - 7 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR the Arbitration and Conciliation provisions of Act, 1996, or any statutory modification or re- enactment thereof for the time being in force. In the event of disagreement on the appointment of Arbitrator, the Parties shall appoint one arbitrator each who shall together appoint an umpire. All proceedings in such arbitration shall be conducted in in English. The arbitration shall Bangalore." take place 10. By issuing a legal arbitration notice on 19.08.2024, the said notice was served to the respondent. The respondent did not reply to the legal notice. From the perusal of the arbitration clause, if any dispute or difference arises between the petitioner in connection with the agreement or validity, the dispute has to be resolved through arbitration. There is an arbitration clause and the dispute has to be resolved through arbitration. The petitioner has made out a ground to refer the dispute to arbitration. In view of the above discussion, I answer the point for consideration in the affirmative. 11. Accordingly, I proceed to pass the following:
Decision
ORDER - 8 - NC: 2025:KHC:21840 CMP No. 133 of 2025 HC-KAR i. The Civil Miscellaneous Petition is allowed. ii. Hon’ble Justice Sri Vishwanath V. Angadi, Retired District Judge, is nominated as the sole Arbitrator to resolve the dispute between the parties to the petition in terms of clause 4.33 of the appointment letter dated 03.04.2022 as per the provisions of the Arbitration and Conciliation Act, 1996 and the Rules. iii. The office is directed to communicate this order to the learned sole Arbitrator and the Arbitration and Conciliation Centre, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE SSB CT: BHK