2024 Supreme(Online)(KAR) 10552
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR CIVIL MISC. PETITION NO.590 OF 2022 BETWEEN:
TERRIER SECURITY SERVICES (INDIA) PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT:
3/3/2 BELLANDUR GATE SARJAPUR MAIN ROAD BANGALORE-560103 AND CORPORATE OFFICE AT NCC URBAN WINDSOR
7TH FLOOR, NEW AIRPORT ROAD REPRESENTED BY THE AUTHORISED BOARD REPRESENTATIVE MADHU DAMODARAN …PETITIONER (BY SRI. T A MAHESH KUMAR., ADVOCATE)
AND:
M/S SINDHU CARGO SERVICES PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.34 BLOCK 3 Digitally signed by SINDHU LOGISTICS PARK VANDANA S Location: Hi gh BEHIND MVIT COLLEGE Court of Karnataka BETTAHALASURU BANGALORE NORTH TALUK BANGALORE-562 157.
…RESPONDENT (RESPONDENT IS SERVED AND UNREPRESENTED)
THIS CIVIL MISC. PETITION UNDER SEC.11(6) OF THE ARBITRATION AND CONCILIATION ACT, PRAYING TO APPOINT HON’BLE MR. V.VENUGOPAL AS SOLE ARBITRATOR TO ADJUDICATE UPON THE DISPUTES THAT HAVE ARISEN BETWEEN THE PETITIONER AND THE RESPONDENT AND ETC.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The present petition under Section 11 of the Arbitration and Conciliation Act, 1996, has been filed by the petitioner against the respondent seeking appointment of an Arbitrator in terms of the Arbitration Agreement contained at Clause Nos.7 and 9 in the Agreement dated 16.01.2017 entered into between the parties.
2. Clauses – 7 and 9 of the said Agreement, which contains an Arbitration clause, reads as under:-
“7. Any of the dispute arising out of this agreement will be resolved by taking recourse to mutual settlement or by way arbitration proceedings subject to the clauses of Indian Arbitration Act in the first instance failing which the dispute will be adjudicated in the Court of law having jurisdiction in the city of Bangalore only. The expenses of this arbitration proceedings will be bared by both the parties equally.”
9. Dispute Resolution That any dispute or differences between the parties herein including the interpretation of this agreement, the same shall be referred to sole arbitrator appointed by mutual consent of both parties. The arbitration proceedings shall be conducted as per the Arbitration and Conciliation Act, 1996. The decision of arbitrator shall be final and binding on both parties. The place of arbitration shall be at Bangalore.”
3. The material on record discloses that since disputes arose between the parties in relation to the aforesaid Agreement containing the aforesaid arbitration agreement / clause, the petitioner invoked the aforesaid arbitration clause and issued a notice dated 23.03.2021 to the respondent putting forth various claims and contentions and nominating and appointing a sole arbitrator and calling upon the respondent to give its concurrence /
consent to refer the dispute to arbitration.
4. The respondent has not sent any reply nor has they disputed the existence of arbitration agreement / clause in the contracts entered into between the parties. Subsequently, the parties have not only failed to resolve their disputes but they have also not reached any consensus / agreement for appointment of an arbitrator and as such, petitioner is before this Court by way of the present petition. Even in the present petition, respondent has not entered appearance and has chosen to remain unrepresented and do not dispute or deny the existence of arbitration agreement /
clause in the contracts entered into between the parties.
5. In view of the aforesaid facts and circumstances, though several contentions have been urged by both sides in support of their respective claims, having regard to the undisputed fact that there exists an arbitration agreement / clause in the contracts entered into between the parties, without expressing any opinion on the merits / demerits of the rival contentions, I deem it just and appropriate to allow this petition by referring the dispute between the parties to arbitration with the consent of both sides by appointing Shri S.Rama Murthy, retired District Judge, to act as the sole Arbitrator to resolve the dispute between the parties under the provisions of the Arbitration and Conciliation Act, 1996, as per the Rules governing the Arbitration and Conciliation Centre (Domestic & International) at Bengaluru.
6. In the result, I pass the following ORDER (i) Petition is hereby allowed.
(ii) Shri S.Rama Murthy, retired District Judge, is hereby appointed as the sole Arbitrator to resolve the dispute between the parties as per the Rules governing the Arbitration and Conciliation Centre (Domestic & International) at Bengaluru.
(iii) All rival claims, contentions, etc., of both parties including contentions relating to maintainability, arbitrability, jurisdiction, limitation, stamp duty, etc., are left / kept open to be decided by the Arbitral Tribunal and no opinion is expressed on the same.
(iv) A copy of this order be sent forthwith to the Arbitration and Conciliation Centre (Domestic & International), Khanija Bhavan, Bengaluru, for proceeding further and also to Shri S.Rama Murthy, re