MISC. Petition No. 400 of 2023 · The High Court
Case Details
- 1 - NC: 2025:KHC:12208 CMP No. 400 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 400 OF 2023 BETWEEN: 1. M/S BREN CORPORATION (EARLIER KNOWN AS M/S S.J.R ENTERPRISES) A SOLE PROPRIETORSHIP CONCERN, REGISTERED UNDER THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1961 HAVING OFFICE AT 3RD FLOOR BREN BALAVANA, PLOT No.61 5TH A BLOCK, KORAMANGALA BANGALORE – 560 095. ALSO AT: PRESTIGE STERLING SQUARE NO. 3, 4TH FLOOR, MADRAS BANK ROAD DIVISION 61, BENGALURU- 560 001. REPRESENTED BY ITS SOLE PROPRIETOR MR. J. BOOPESH REDDY …PETITIONER (BY SRI. AJAY SHANKAR, ADVOCATE) AND: 1. MRS. PAVITHRA SRINIVAS WIFE OF LATE G N SRINIVAS AGED 52 YEARS 2. Ms. SONALINI DAUGHTER OF LATE G.N. SRINIVAS AGED 31 YEARS Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:12208 CMP No. 400 of 2023
Legal Reasoning
3. MR. VARUN S. GOWDA SON OF LATE G.N. SRINIVAS AGED 29 YEARS R1 TO R3 ARE RESIDING AT NO. 152, 8TH CROSS DOLLARS COLONY BILEKAHALLI, BTM LAYOUT BENGALURU – 560 076. ALSO AT FLAT NO. C-1003, AJMERA GREENS KALENA AGRAHARA BANNERGHATTA ROAD BENGALURU – 560 076. …RESPONDENTS (R1 TO R3 SERVICE HELD SUFFICIENT V/O DATED 14.03.2025.) THIS CIVIL MISC. PETITION IS FILED UNDER SEC.11(5) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO APPOINT A SOLE ARBITRATOR IN TERMS OF CLAUSE 27.4 OF AGREEMENT DATED 20.09.2010 (ANNEXURE- A) SO AS TO ARBITRATE THE DISPUTES RAISED BY THE PETITIONERS AGAINST THE RESPONDENTS AND ETC. 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 dispute between the parties in - 3 - NC: 2025:KHC:12208 CMP No. 400 of 2023 terms of Clause 27.4 of the Joint Development Agreement (‘JDA’ for brevity) dated 20.09.2010 vide Annexure-A. 2. The brief facts leading rise to the filing of this petition are as follows : The petitioner is involved in developing large residential and commercial properties in Bengaluru. One Mr. G.N.Srinivasa, the husband of respondent No.1 and father of respondent Nos.2 and 3, was the absolute owner of the property bearing Sy.No.20/1 measuring 2 acres and Sy.No.21/1 measuring 36 guntas and Sy.No.21/2 measuring 1 gunta, totally measuring 2 acres 33 guntas situated at Kalena Agrahara village, Begur Hobli, Bannerghatta Main Road, Bengaluru South Taluk. Bengaluru. 3.1. He approached the petitioner and informed him about his desire to jointly develop the schedule property by entering into a JDA. He had entered into a registered JDA dated 20.09.2010 with the petitioner for developing the schedule property by constructing the commercial - 4 - NC: 2025:KHC:12208 CMP No. 400 of 2023 building therein as permitted by the competent authorities. It was agreed that the petitioner would, at its own cost, develop the schedule property by constructing a multi-storied commercial building therein, in terms of the plan sanction issued by the BBMP and deliver 45% of the constructed area with a proportionate number of car parking spaces, common and terrace area (hereafter the owners constructed area). The petitioner has to procure the conversion of the schedule property and all the licenses etc. 3.2. It was agreed that, in addition to the delivery of the owners constructed area, the petitioner would pay the first party in the JDA, i.e., Mr. G.N.Srinivas, a sum of Rs.2,00,00,000/- (Rupees Two Crores only) as an interest free refundable deposit, refundable before the expiry of 30 days from the date the petitioner intimated that the owners constructed area was ready to be delivered along with the occupancy certificate. The petitioner made a payment of Rs.2,00,00,000/- through cheques drawn on - 5 - NC: 2025:KHC:12208 CMP No. 400 of 2023 Kotak Mahindra Bank, Koramangala Branch, Bengaluru. The petitioner complied with the condition of payment of a refundable security deposit. It is contended that a triparte agreement was entered between the petitioner and G.N.Srinivas and M/s. Trent Hypermarket Ltd., on 14.1.2011, whereby the petitioner and G.N.Srinivas agreed to provide the commercial building on lease to M/s. Trent Hypermarket Ltd. The petitioner presented the plan copies to the BBMP for its sanction and it had issued a demand note asking for payment of improvement charges. 3.3. The petitioner filed a writ petition in W.P.No.7373/2012, before this Court by obtaining the signature of Mr. G.N.Srinivas. The petitioner obtained the conversion
Decision
order and change of land use. Mr. G.N.Srinivasa passed away in April 2017. The petitioner made attempts to reach out to the respondents, being the legal heirs of late G.N.Srinivas, as to update them and initiate talks for having a fresh GPA executed in favour of the petitioner to assist in procuring the - 6 - NC: 2025:KHC:12208 CMP No. 400 of 2023 necessary sanctions, etc., on behalf of the respondents, who by succession, were the owners of the schedule property, in terms of the JDA and for issuance of the pending affidavit that is to be issued by the land owners for processing the amalgamation of khata. 3.4. The respondents went on postponing the meeting with the petitioner on one pretext or the other. By virtue of the evasive conduct of the respondents, the petitioner has been facing the legal and financial pressure from the future tenants, who had given a timeline for the completion of the project. The petitioner issued a legal notice dated 16.07.2021 on the last known address of the respondents. The respondents did not reply to the legal notice dated 16.07.2021. The petitioner issued a reminder vide notice dated 10.06.2022 to the respondents, which was reissued on 13.06.2022 to seek a response. The respondents did not comply with the terms of the JDA. The petitioner reissued a reminder dated 13.12.2022. The respondents failed to discharge their obligation by the - 7 - NC: 2025:KHC:12208 CMP No. 400 of 2023 terms of the JDA. Hence, the petitioner issued a legal notice dated 11.07.2023, invoking the arbitration clause, i.e., clause No.27.4 of the JDA and called upon the respondents to come forward and to accept the nomination of an Arbitrator, made by the petitioner. 3.5. The JDA dated 20.09.2010 has an Arbitration clause (Clause No.27.4) for the settlement of all disputes in connection with the agreement. Despite service of notice, the respondents failed to respond to the legal notice dated 11.07.2023 even as on date. Hence, a dispute has arisen between the parties and the said dispute has to be resolved by recourse of the arbitration in accordance with the provisions of the Act, 1996. Hence, this petition. 3.6. Notice was issued to the respondents; despite service of notice, there is no representation on behalf of the respondents. 4. Heard the arguments of the learned counsel for the petitioner. - 8 - NC: 2025:KHC:12208 CMP No. 400 of 2023 5. Perused the records and considered the submissions of the learned counsel for the petitioner. 6. 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 27.4 of JDA dated 20.09.2010 as per provisions of the Arbitration and Conciliation Act, 1996?” 7. It is not in dispute that one G.N.Srinivas was the absolute owner of the property bearing Sy.No.20/1 measuring 2 acres and Sy.No.21/1 measuring 36 guntas and Sy.No.21/2 measuring 1 gunta, totally measuring 2 acres 33 guntas situated at Kalena Agrahara village, Begur Hobli, Bannerghatta Main Road, Bengaluru South Taluk, Bengaluru. 8. The petitioner and respondents have entered into a JDA, which was registered on 20.09.2010 for developing the schedule property by constructing the commercial building. As per the terms of JDA, the - 9 - NC: 2025:KHC:12208 CMP No. 400 of 2023 petitioner paid a sum of Rs.2,00,00,000/- (Rupees Two Crores) to G.N.Srinivas as an interest-free refundable deposit and the same to be refunded before the expiry of 30 days from the date the petitioner has completed the entire construction and delivered the possession with occupancy certificate. After the death of G.N.Srinivas, the respondents, the Lrs of deceased Srinivas did not comply with the terms of JDA. Hence, the petitioner issued a legal notice on 16.07.2021 at the last known address of the respondents. The respondents did not reply to the legal notice. The petitioner issued a reminder notice. The respondents have failed to discharge their obligation of the terms of JDA. The dispute arises between the petitioner and the respondents, and the dispute has to be resolved by recourse to the Arbitration as per the provisions of the Act, 1996. Admittedly, the JDA provides an Arbitration clause in clause No.27.4, which reads as follows: 27.4. In the event of the parties being unable to resolve the dispute by conciliation as above or - 10 - NC: 2025:KHC:12208 CMP No. 400 of 2023 within such further time as the parties may mutually agree, the dispute may be referred by either party to the Arbitration and Conciliation Act, 1996 or any re-enactment or modification thereof and shall be decided by such Arbitral Tribunal. The award shall be final and binding on the parties. 9. The dispute between the petitioner and respondents has to be resolved through an Arbitrator. Though notice was issued to the respondents, despite service of notice, the respondents remained unrepresented. In view of the above discussion, the petitioner has made out a ground to refer the dispute to the Arbitrator. Accordingly, I answer the point for consideration in the affirmative. 10. Accordingly, I proceed to pass the following: ORDER i. The Civil Miscellaneous Petition is allowed. ii. Hon’ble Sri. Justice Anand Byra Reddy, Former Judge, High Court of Karnataka, is appointed as a sole Arbitrator to resolve the dispute between the petitioner and the respondents in terms of clause 27.4 Paged No.10 is retyped and replaced vide Court order dated 03.06.2025 - 11 - NC: 2025:KHC:12208 CMP No. 400 of 2023 of the JDA as per the provisions of the Act, 1996. iii. The office is directed to communicate this order to the learned Arbitrator and the Arbitration and Conciliation Center, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE sks