OF ARBITRATION AND CONCILIATION ACT., PRAYING TO APPOINT MR.VISHWANATH v. ANGADI
Case Details
- 1 - NC: 2025:KHC:14406 CMP No. 535 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 04TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION No.535 OF 2024 BETWEEN: MRS. MUNTHA SANGEETA @ SANGEETA MUNTHA W/O. GOPALAKRISHNA MUNTHA, AGED ABOUT 66 YEARS, RESIDING AT NO. 579, 4TH CROSS, HMT LAYOUT, R.T. NAGAR, BENGALURU-560 032 (BY SMT/MISS. DAFNY MONALISA ‘D’ CUNHA, FOR SRI HARSH S PAREKH, ADVOCATES) AND: …PETITIONER Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA 1. M/S. SUBRAMANYA CONSTRUCTION AND DEVELOPMENT COMPANY LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO.42, 2ND STAGE, 3RD CROSS, INDUSTRIAL SUBURB, YESHWANTHPUR, BENGALURU-560 022, ALSO HAVING REGIONAL OFFICE AT NO.4/1, TUMKUR ROAD, YESHWANTHPUR, BENGALURU-560 022, - 2 - NC: 2025:KHC:14406 CMP No. 535 of 2024
Legal Reasoning
11. Admittedly, there is no dispute regarding the execution of the lease deed between the petitioner and respondent regarding the subject premises for six years. The lease period expired, and subsequently, the respondent delivered the possession of the subject premises to the petitioner. However, the respondent did not pay the arrears of rent and other charges to the petitioner. 12. The petitioner issued the notice to the respondent to pay arrears and other charges. The respondent did not pay the said amount. The petitioner issued an arbitration notice through an e-mail. Respondent did not respond to the said e- mail. Petitioner issued arbitration notice invoking the arbitration clause- 9(g) of the lease deed. - 6 - NC: 2025:KHC:14406 CMP No. 535 of 2024 13. Clause 9(g) of the Lease Deed provides for an arbitration clause, which reads as follows: “9(g) In the event of any dispute or difference arising between the parties hereto in regard to any matter relating to or connected with this Lease Deed, the same shall be referred to Arbitration in accordance with the Arbitration Act and any amendments thereof. The decision of the Arbitrator shall be final and binding on the Lessor and the Lessee; the venue of Arbitration shall be Bangalore and the Courts at Bangalore shall have the jurisdiction in regard to this Lease Deed.” 14. Clause 9(g) of the Lease Deed provides that in the event of any dispute or difference arising between the parties with regard to any matter relating to or connected with the Lease Deed, the same shall be referred to arbitration, as per the arbitration clause. 15. Admittedly, there is an arbitration clause in the lease deed. As per the said clause, the dispute arising between the petitioner and the respondent regarding the payment of arrears of rent and other charges shall be referred to an Arbitrator. Thus, in view of the arbitration clause, the petitioner has made - 7 - NC: 2025:KHC:14406 CMP No. 535 of 2024 out a ground to refer the matter to the arbitrator to resolve the dispute between the petitioner and the respondent. 16.
Arguments
REPRESENTED BY ITS MANAGING DIRECTOR, MR. BALASUBRAMANYAM NAGESH. …RESPONDENT (VIDE ORDER DATED 26.03.2025 SERVICE OF NOTICE TO RESPONDENT IS HELD SUFFICIENT) THIS CIVIL MISC. PETITION FILED UNDER SECTION 11(6) OF ARBITRATION AND CONCILIATION ACT., PRAYING TO APPOINT MR.VISHWANATH V. ANGADI (RETD)., FORMER JUDGE, KARNATAKA DISTRICT AND SESSIONS COURT, OR ANY OTHER SOLE ARBITRATOR AS THIS HONBLE COURT MAY DEEM FIT, FOR ADJUDICATION OF DISPUTES THAT HAVE ARISEN BETWEEN THE PETITIONER AND THE RESPONDENT IN TERMS OF CLAUSE 9(g) OF THE LEASE DEED DATED 23.06.2014 (ANNEXURE-A), IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI ORAL ORDER The 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 the respondent in terms of clause 9(g) of the Lease Deed dated 23.06.2014 vide Annexure-A. 2. Brief facts leading rise to the filing of the present petition are as follows: - 3 - NC: 2025:KHC:14406 CMP No. 535 of 2024 A lease deed was executed between the petitioner and the respondent regarding the subject premises, on 23.06.2014, and the period of the lease was for six years with effect from 01.07.2014. Even after the expiry of the lease period, the respondent continued to be in unauthorized occupation of the subject premises and refused to vacate the same. Despite several reminders from the petitioner for payment of rent and other charges and for vacating the subject premises, the respondent refused to comply with the petitioner’s request and continued to be in illegal occupation of the subject premises without payment of contractual dues. 3. Later, the respondent vacated the subject premises and the parties held several meetings to discuss the final settlement of dues. However, parties are unable to reach out the settlement. The petitioner issued an arbitration notice to the respondent invoking the arbitration clause-9(g) under the lease deed. The respondent neither concurred with the petitioner’s nomination of sole arbitrator nor made an alternative nomination as per the terms and conditions of the lease deed. Hence, this petition. - 4 - NC: 2025:KHC:14406 CMP No. 535 of 2024 4. Notice was issued to the respondent in this petition. Despite service of notice, the respondent remained unrepresented. 5. Heard the arguments of the learned counsel for the petitioner. 6. The learned counsel for the petitioner submits that the petitioner and the respondent have entered into a lease deed in respect of the subject premises for six years. Even after the expiry of six years, the respondent did not vacate the subject premises and did not pay the arrears of rent and other charges. 7. The learned counsel further submits that the petitioner issued a notice calling upon the respondent to pay arrears of rent etc., However, the respondent did not pay the arrears of rent. Petitioner issued an arbitration notice under Section 21 of the Arbitration and Conciliation Act invoking the arbitration clause in terms of clause 9(g) of the lease deed dated 23.06.2014. 8. The respondent did not reply to the said arbitration notice. Hence, learned counsel prays to allow the petition. - 5 - NC: 2025:KHC:14406 CMP No. 535 of 2024 9. Perused the records and considered the submissions made by the learned counsel for the petitioner. 10. The point that arises for consideration in the present petition is: “Whether the petitioner has made out a ground to refer the dispute to the arbitrator in terms of clause 9(g) of the Lease Deed dated 23.06.2024 vide Annexure-A?”
Decision
In view of the above discussion, the petitioner has made out a ground to refer the dispute to an Arbitrator. Accordingly, the point raised for consideration is answered in the affirmative. 3. Accordingly, I proceed to pass the following: ORDER (i) The Civil Miscellaneous Petition is allowed. (ii) Hon’ble Sri Justice John Michael D’ Cunha, Former Judge, High Court of Karnataka is appointed as an Arbitrator to resolve the dispute between the petitioner and the respondent 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 Arbitrator and the Arbitration and Conciliation Centre, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE kcm List No.: 1 Sl No.: 13