2022 Supreme(Online)(Kar) 39867
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 10TH DAY OF JUNE, 2022
BEFORE
THE HON’BLE MR. RITU RAJ AWASTHI, CHIEF JUSTICE
C.M.P. NO. 24 OF 2022
BETWEEN:
M/S SOBHA LIMITED
[FORMERLY SOBHA DEVELOPERS LIMITED]
A COMPANY INCORPORATED UNDER
THE PROVISIONS OF THE COMPANIES ACT, 1956
HAVING REGISTERED OFFICE AT
“SOBHA”, SARJAPURA-MARATHALLI RING ROAD
BELLANDUR POST
BENGALURU – 560 103
REPRESENTED BY ITS AUTHORISED SIGNATORY
SRI RAJESH MARATHE
... PETITIONER
(BY SRI MADHUKAR M DESHPANDE, ADVOCATE)
AND:
1 .
M/S NAVA VISHWA SHASHI VIJAYA
KRISHNA PROPERTIES PVT. LTD.,
A COMPANY INCORPORATED UNDER
THE PROVISIONS OF THE COMPANIES ACT, 1956,
HAVING REGISTERED OFFICE PRESENTLY AT
NO.25, 15TH MAIN ROAD, RMV EXTENSION
SADASHIVANAGAR, BENGALURU – 560 003.
REPRESENTED BY ITS DIRECTOR
E-MAIL: cs@necltd.com
2 .
MR. SURYANARAYANA ARUMILLI
S/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
DIRECTOR
NVSVK PROPERTIES PVT. LTD.
PLOT NO.A33, FILM NAGAR
APOLLO HOSPITAL, JUBILEE HILLS
HYDERABAD – 500 096.
2
3 .
MS. LAKSHMI PRIYADARSHINI CHINTA
D/O. NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
CEO AND DIRECTOR
NVSVK PROPERTIES PVT. LTD.,
PLOT NO.A33, SRI VISWANVITHA
ROAD NO.11, FILM NAGAR
JUBILEE HILLS
HYDERABAD – 500 033.
4 .
MS. CHINTA SAISUDHA
D/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
DIRECTOR
NVSVK PROPERTIES PVT. LTD.
PLOT NO.854/B, ROAD NO.44
JUBILLE HILLS
HYDERABAD – 500 033.
5 .
MR. BHARATH REDDY GOPU
S/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
DIRECTOR
NVSVK PROPERTIES PVT. LTD.
11-1-44, KOTHURU ROAD
KOVURU
NELLORE – 524 137.
6 .
MR. SASIDHAR CHINTA
S/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
DIRECTOR
NVSVK PROPERTIES PVT. LTD.
PLOT NO.32, 33 ROAD NO.11
NEXT TO M.P. RAJAGOPAL HOUSE,
FILM NAGAR, JUBILEE HILLS
HYDERABAD – 500 033.
ALSO AT:
PLOT NO.550, A/1 ROAD NO.92
JUBILEE HILLS - PHASE III
HYDERABAD – 560 032.
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7 .
MR. UDDARAJU BANGAR RAJU
S/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
2-7-8A, PENNUMATSAAVARI STREET
SIVA RAO PETA BHIMAVARAM
WEST GODAVARI – 534 202.
8 .
MR. ZARNA BHARATH SHINGALA
S/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
H NO.1-8-472, PLOT NO.131
NEW MCH COLONY
DILSUKHNAGAR
HYDERABAD – 500 060.
9 .
MR. G.M. VIJAYKUMAR
S/O NOT KNOWN TO THE PETITIONER
MAJOR BY AGE
EX-MANAGING DIRECTOR AND
AUTHORISED SIGNATORY
NVSVK PROPERTIES PVT. LTD.
NO.25, 15TH MAIN ROAD
RMV EXTENSION
SADASHIVANAGAR
BENGALURU – 560 003.
ALSO AT:
NO.22/5, B.R. HILLS ROAD
CHAMARAJ NAGAR
KARNATAKA – 571 313
ALSO AT
C/O. MR. CHINTA SASIDHAR
PLOT NO.32, 33, ROAD NO.11
NEXT TO M.P. RAJAGOPAL HOUSE
FILM NAGAR
JUBILLE HILLS
HYDERABAD – 500 033.
... RESPONDENTS
---
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THIS
CMP
IS
FILED
UNDER
SECTION
11(6)
OF
THE
ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT
AN ARBITRATOR TO ADJUDICATE THE DISPUTES THAT HAVE ARISEN
BETWEEN THE PETITIONER AND THE RESPONDENTS AS PER CLAUSE
11 OF THE WORK ORDER DATED 15.01.2014 (ANNEXURE-‘A’) AND
ETC.
THIS PETITION, HAVING BEEN HEARD AND RESERVED FOR
ORDERS, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT
MADE THE FOLLOWING:
Heard counsel for the petitioner and perused the record.
2.
The Civil Miscellaneous Petition is filed under Section
11(6) of the Arbitration and Conciliation Act, 1996 seeking
appointment of an Arbitrator to adjudicate the dispute that has
arisen between the petitioner and respondents as per clause 11
of the Work Order dated 15.01.2014 (Annexure-‘A’).
3.
The facts of the case in brevity are that the 1st
respondent approached the petitioner and informed that it is
interested in entrusting design and construction of residential
building work at No.25, 15th Main Road, 10th Cross, RMV
Extension, Bangalore, on a plot. Accordingly 1st respondent
issued Work Order dated 15.01.2014 in favour of the petitioner.
It is alleged that the respondents also entrusted to the petitioner
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the work of carrying out residential building construction work at
their Plot No.32-33, Road No.11, Next to M.P. Rajagopal House,
Film Nagar, Jubilee Hills, Hyderabad and the petitioner agreed
for the same.
4.
It is submitted that the petitioner had completed
construction works of both the residential buildings during the
period 2014 to 2018. The possession of the buildings situated at
Bangalore and Hyderabad were handed over to respondents and
the same has been accepted by the respondents without any
demur. The respondents are in complete occupation and
enjoyment of the same. However, they have not paid the
balance amount for construction work done by the petitioner.
The respondents have made part payment and have paid only
Rs.3,53,57,520/-. The respondents are required to pay a sum of
Rs.18,44,30,380/- along with interest as balance amount which
is due to the petitioner. The petitioner has repeatedly requested
the respondents to make the payment of the balance amount,
however, the respondents did not bother to reply to the letters
of the petitioner or make the payment of the balance amount
with interest. The petitioner has sent several letters to the
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respondents. The petitioner has invoked clause 11 of the Work
Order by sending a notice dated 14.07.2020 to respondents and
nominated Sri. S.S.Nagarale, retired District Judge as Sole
Arbitrator. The said notice has been served on respondent No.1
on 27.07.2020. However, he has not sent any reply. The
petitioner has received the reply only from respondent Nos.2 to
9 and they have baldly denied the lawful claim made by the
petitioner. The respondent Nos.2 to 9 are the Directors / officials
of respondent No.1. The petitioner is therefore left with no other
option but to file the instant petition under Section 11(6) for
appointment of Arbitrator. The petitioner has also filed
Commercial A.A. No. 9/2021 before the City Civil and Sessions
Judge, Bengaluru, under Section 9 of the Arbitration and
Conciliation Act.
5.
Learned counsel for the petitioner has placed
reliance on the Hon’ble Supreme Court’s decisions in MTNL v.
Canara Bank1, and Punjab State v. Dina Nath2, to submit and
establish that there is a valid arbitration agreement in existence
between the petitioner and the Respondents.
1 (2020) 12 SCC 767
2 (2007) 5 SCC 28
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6.
Reliance is also placed upon decisions of the Hon’ble
Supreme Court in Mohd. Masroor Shaikh v. Bharat Bhushan
Gupta3 and Sanjiv Prakash v. Seema Kukreja4 to submit that this
Court has a limited scope of interference at this referral stage
under Section 11 of the Act of 1996 for appointment of
arbitrator, particularly after the introduction of Section 6A post
the 2015 Amendment to the Act of 1996. Hence, the power of a
court under Section 11 should be limited to viewing whether an
arbitration agreement exists between the parties and any
elaborate review of facts and law which appears to be arguable
would be non-determinable at the stage of reference.
7.
The respondents have remained unrepresented in
view of the office objection raised to seek clarification as to how
Respondents No. 2 to 9 have been made parties in this petition,
when those are not parties in the work order vide A