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2022 Supreme(Online)(Kar) 39867

1

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.

3

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

---

4

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

6

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

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