PRADEEP NANDRAJOG, J.

1. Shorn of unnecessary details, the relevant facts for the purpose of adjudication of the present appeal required to be noted (as set out in the pleadings of parties) are that Lakshmi Cement & Ceramics Industries Ltd. (hereinafter referred to as the ‘Lakshmi Industries’) held a mining lease to mine Lime Stone, Dolomite and Manganese over a parcel of land admeasuring 600 acres in survey Nos.9, 42, 43, 100 and 102 of Ittigehalli Village, Mathudo Hobli, Hosadurga Taluk, Chitradurga District, Karnataka.

2. On September 23, 2004 an agreement was entered into between Lakshmi Industries and V.Sreenivas (hereinafter referred to as the ‘Sreenivas’) whereby Lakshmi Industries agreed to transfer 200 acres out of 600 acres of aforesaid land for a sum of Rs. 1,62,00,000/-(Rupees One Crore Sixty Two Lakhs only).

3. However, the aforesaid agreement dated September 23, 2004 could not fructify since Sreenivas could not arrange the sale consideration.

4. M/s.Felex Enterprises Pvt. Ltd. (hereinafter referred to as the ‘Felex Enterprises’) was interested to purchase the 200 acres of land which was the subject matter of the agreement between Lakshmi Industries and Sreenivas. Negotiations were held between the parties i.e. Lakshmi Industries, Sreenivas and Felex Enterprises for sale/transfer of the said land.

5. On May 26, 2006 a tripartite agreement was entered into between Lakshmi Industries, Sreenivas and Felex Enterprises prescribing that Lakshmi Industries had agreed to transfer 200 acres of land in favour of Felex Enterprises for a sum of Rs. 3,71,00,000/-(Rupees Three Crore Seventy One Lakhs only); Sreenivas would facilitate the said transfer in favor of Felex Enterprises for which purpose a bilateral agreement would be entered into between Sreenivas and Felex Enterprises and (earlier) agreement dated September 23, 2004 entered into between Lakshmi Industries and Sreenivas would stand cancelled on signing of bilateral agreement between Sreenivas and Felex Enterprises.

6. Being relevant, we note following portion of the tripartite agreement dated May 26, 2006 entered into between the parties :-

“Whereas the Confirming Party has entered into an agreement with the first party on 23.09.04 for the transfer of 200 acres out of 600 acres spread on the part of Survey No. 9, 40, 43, 44, 100 and 102 of Ittigehalli Village, Mathodu Hobli, Hosadurga Taluk, Chitradurga District vide mining lease No. 1667/2260. The map of total land with the 200 Acres demarcated by red line is set out in Enclosure 1.

Whereas the first part has represented that due to paucity of funds and lack of resources, it is not interested in getting the above said area duly transferred in its name as per the provision of Rule 37 of Mining Concession Rule 1960. It has further represented that it will facilitate the transfer of above said area in favor of part No.2. It has further represented that on signing of bilateral agreement between second part and Confirming party, its agreement with the Confirming party will stand cancelled and shall cease to have any legal effect.” (Be it noted here that Sreenivas, Felex Enterprises and Lakshmi Industries have been referred as First Part, Second Part and Confirming Party in the tri-partite agreement dated May 26, 2006).”

7. The said tripartite agreement dated May 26, 2006 entered into between the parties contained an arbitration clause, being clause No.12. The same reads as under :-

“In the event of any disputes in relation to or connected with the present agreement the same shall be referred to arbitration of sole arbitrator to be appointed by second part and the arbitration proceedings shall be held at Bangalore and shall be subject to Bangalore High Court jurisdiction.”

8. On June 24, 2006 a Memorandum of Understanding was arrived at between the parties regarding payment of sale consideration by Felex Enterprises. As per said understanding, Felex Enterprises had to make payments to Lakshmi Industries and Sreenivas in t