IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 9^TH DAY OF SEPTEMBER 2022

BEFORE

THE HON9BLE MR. JUSTICE B. M. SHYAM PRASAD

CMP NO.449/2022

BETWEEN :

1.

JAGANMAYI BUILDERS AND

DEVELOPERS PRIVATE LIMITED

A COMPANY INCORPORATED

UNDER THE PROVISION OF

COMPANIES ACT, 2013

HAVING ITS REGISTERED

OFFICE AT

SALARPURIA WINDSOR,

NO.3, 4^TH FLOOR, ULSOOR ROAD,

BENGALURU 560 042.

REP BY ITS AUTHORIZED SIGNATORY

MR. ASHWIN SANCHETI.

2.

NEELANCHAL HAPPY GRIHA LLP

A LIMITED LIABILITY PARTNERSHIP

REGISTERED UNDER THE

PROVISIONS

OF LIMITED LIABILITY

PARTNERSHIP ACT, 2008

HAVING ITS REGISTERED OFFICE AT

SALARPURIA WINDSOR, NO.3,

4^TH FLOOR, ULSOOR ROAD,

BENGALURU - 560 042.

REP BY ITS AUTHORIZED SIGNATORY

MR. ASHWIN SANCHETI.

2

3.

JAGANMAYI CONSTRUCTIONS

PRIVATE LIMITED

A COMPANY INCORPORATED

UNDER THE PROVISIONS OF

COMPANIES ACT 2013

HAVING ITS REGISTERED OFFICE AT

SALARPURIA WINDSOR,

NO.3, 4^TH FLOOR,

ULSOOR ROAD,

BENGALURU 560 042.

REP BY ITS AUTHORIZED SIGNATORY

MR. ASHWIN SANCHETI.

... PETITIONERS

(BY SRI. G.L. VISHWANATH, SENIOR ADVOCATE

FOR SRI. ARUN PRADESH E, ADVOCATE)

AND:

1.

MR SUMANTH REDDY

R/AT NO. S -001, LE PROMENADE

PROMENANDE APARTMENTS,

LE PROMENANDE ROAD, FRAZER TOWN

BENGALURU - 560 005.

AND AT NO. 537, AMARJYOTHI LAYOUT,

OPPOSITE TO DELL AND NEXT

TO SHELL PETROL BUNK

DOMLUR, BENGALURU 560 071.

AND AT 24/161,

SHANTI NAGAR

NEAR SINDURA NURSING HOME

DARGAMITTA, NELLORE

ANDHRA PRADESH - 524 003.

2.

MR. SREENADHA REDDY

HAVING HIS OFFICE AT

KAY KAY TOWERS,

3

NO.18, 17^th CROSS,

SECTOR 7, HSR LAYOUT,

BENGALURU 560 102.

110 TANJONG, RHU ROAD,

UNIT 10- 02, CAMELOT BY WATER

SINGAPORE 436 928.

3.

RP PLATINA

HAVING ITS REGISTERED OFFICE AT

KAY KAY TOWERS

No.18, 17^TH CROSS

SECTOR 7, HSR LAYOUT

BENGALURU - 560 102.

... RESPONDENTS

(BY SRI. S.K.V. CHALAPATHY, SENIOR ADVOCATE

FOR SRI. SIDDHARTHA H M &

MANJUNATH B, ADVOCATES)

THIS CMP IS FILED UNDER SECTION 11(6) OF THE

ARBITRATION & CONCILATION ACT, 1996 PRAYING TO

APPOINT A SOLE ARBITRATOR IN TERMS OF CLAUSE-18

R/W 19 OF THE MEMORANDUM OF UNDERSTANDING

DATED

06/10/2018

VIDE

ANNEXURE-A

AND

SUPPLEMENTAL AGREEMENT DATED 06/10/2018 VIDE

ANNEXURE-C

TO

ADJUDICATE

THE

DISPUTE

IN

QUESTION BETWEEN THE PARTIES.

THIS PETITION COMING ON FOR PRONOUNCEMENT

OF

ORDERS

THIS

DAY,

THIS

COURT

MADE

THE

FOLLOWING:

4

O R D E R

The

petitioners have filed this

petition

for

appointment of a sole arbitrator relying upon the terms

of Memorandum of Understanding dated 06.10.2018

[MOU]

and

the

Supplemental

Agreement

dated

04.12.2018 [Supplemental Agreement]. The respondents,

who are together parties to both the MOU and the

Supplemental Agreement unlike the petitioners, resist

the petition essentially contending that there is no

subsisting agreement for arbitration. The MOU is only

between the first petitioner and the respondents, but all

the petitioners and respondents are parties to the

Supplemental Agreement.

2.

The first petitioner, M/s Jaganmayi Builders

and Developers Private Limited, and the respondents

have entered into MOU for the construction of a

Commercial Office Complex under a joint venture

arrangement in the land measuring 20 acres in the

5

different

survey

numbers

of

two

villages

viz.,

Kariyammana

Agrahara

and

Devara

Beesanahalli

Villages of Varthur Hobli, Bangalore East Taluk [the

subject property] in anticipation of the allotment of this

land by M/s. Karnataka Industrial Areas Development

Board [KIADB] in favour of the respondents. The first

petitioner, in consideration of the assurance to grant

development rights on terms as mentioned in the MOU,

has

agreed

to

pay

security

deposit

of

Rs.135,00,00,000/- [Rs. One Hundred and Thirty Five

Crores Only]. The first petitioner, as acknowledged in

the MOU, has paid Rs.25,00,00,000/- [Rs. Twenty Five

Crores Only