1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 29TH DAY OF JULY, 2022
BEFORE
THE HON'BLE MR. JUSTICE M. NAGAPRASANNA
CIVIL MISCELLANEOUS PETITION No.343 OF 2021
BETWEEN:
M/S M.N.ENTERPRISES
PARTNERSHIP FIRM
OFFICE AT SY NO.82/4B
DODDAKANNAHALLI VILLAGE
VARTHUR HOBLI
BENGALURU 3 560 035
REPRESENTED BY ITS PARTNER
MR.M.N.PRABHAKAR.
... PETITIONER
(BY SRI VIVEK HOLLA, ADVOCATE (PHYSICAL HEARING))
AND:
1.
M/S NOVUS AND BERRYS INDIA
PARTNERSHIP FIRM
OFFICE AT NO.82/4B
SARJAPUR MAIN ROAD
NEXT TO WIPRO CORPORATE OFFICE
BENGALURU 3 560 035
REPRESENTED BY
M/S NOVUS INDIANA LEISUREZ LLP
THROUGH ITS DESIGNATED PARTNER
MR.CHANDRASEKHAR V.,
2.
MR.GIREESHA KODGI
ADVOCATE AND SOLE ARBITRATOR
2
OFFICE AT NO.141, 2ND FLOOR,
KAVI LAKSHMEESHA ROAD
NEAR NMH HOTEL, V.V.PURAM
BENGALURU 3 560 004.
... RESPONDENTS
(BY SRI R.KIRAN, ADVOCATE FOR R1;
R2 SERVED AND UNREPRESENTED))
THIS CIVIL MISCELLENEOUS PETITION IS FILED UNDER
SEC. 11(5) AND (6) OF THE ARBITRATION AND CONCILIATION ACT
1996, PRAYING THIS HON9BLE COURT TO
I) NOMINATE AND APPOINT A RETIRED JUDGE OF THIS
HON'BLE COURT AS THE SOLE ARBITRATOR, IN TERMS OF
CLAUSE 27 OF THE LEASE DEED DATED 14/10/2016 TO
ADJUDICATE THE DISPUTE BETWEEN THE PARTIES HERETO IN
RESPECT
OF
THE
LEASE
DEED
DATED
14/10/2016.
(ANNEXURE-D).
II)
DECLARE
THAT
THE
APPOINTMENT
OF
THE
2ND
RESPONDENT AS THE SOLE ARBITRATOR, IS NON EST HAVING
BEEN MADE WITHOUT THE CONSENT OF THE PETITIONER AND
CONTRARY TO CLAUSE 27 OF THE LEASE DEED DATED
14/10/2016, AND
III) GRANT SUCH OTHER AND FURTHER RELIEFS AS ARE
JUST, INCLUDING THE COSTS OF THIS PETITION.
THIS
CIVIL
MISCELLANEOUS
PETITION
HAVING
BEEN
HEARD AND RESERVED FOR ORDERS, COMING ON FOR
PRONOUNCEMENT
THIS
DAY,
THE
COURT
MADE
THE
FOLLOWING:-
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The petitioner is before this Court, in the subject petition,
seeking nomination and appointment of a retired Judge of this
Court as sole Arbitrator, to arbitrate and adjudicate upon the
dispute between the parties to the lis.
2. Heard the learned counsel Sri Vivek Holla appearing for
the petitioner and the learned senior counsel Smt. Lakshmi
Iyengar representing respondent No.1.
3. Brief facts leading to the filing of the present petition, as
borne out from the pleadings, are as follows:-
The petitioner claims to be a partnership firm incorporated
under the provisions of the Partnership Act, 1932 and is
engaged in the business of a Multi-cuisine Family Bar and
Restaurant. A lease deed came to be executed by Mr. Jaideep L
and Mr. Pradeep L in favour the petitioner in respect of property
bearing No.82/4B situated in Doddakannalli village, Varthur
Hobli, Bangalore (schedule property9 for short) for a period of 11
4
years. On 14-10-2016 the petitioner executed a lease deed in
favour of the 1st respondent firm sub-leasing the schedule
property consisting of lease hold land, building premises along
with car parking space for a period of 10 years and put the 1st
respondent in possession on the date of signing the lease deed.
On 24.11.2017 it transpires that amendment deed was brought
out making certain amendments to the clauses in the lease deed
and it was agreed that the rent would commence from
01-01-2018.
4. A dispute arose between the petitioner and the 1st
respondent which resulted in the 1st respondent causing a legal
notice upon the petitioner allegedly invoking the clause with
regard to arbitration as found in the lease deed and also
proposing to nominate one Sri Gireesha Kodgi, Advocate/2nd
respondent as the sole Arbitrator to adjudicate upon the dispute
generated in terms of the lease deed. The petitioner replies to
the notice objecting to the appointment of the 2nd respondent as
sole Arbitrator. On receipt of a reply, which was in the form of
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objections, the 1st respondent approaches Commercial Court
under Section 9 of the Arbitration and Conciliation Act, 1996
(8the Act9 for short) in Com.A.A.160 of 2020 seeking injunction
restraining the petitioner from dispossessing them from the
schedule property.
5. The Commercial Court by its order dated 21-07-2021
granted an ex-parte interim order in terms of Section 17 of the
Act even without issuing notice upon the petitioner and the
Arbitrator who was appointed earlier by the 1st respondent
issued notice to the petitioner directing him to appear before him
on 13-08-2021. The petitioner immediately sent a reply to the
2nd respondent opposing constitution of Arbitral Tribunal
unilaterally without its consent and opposed the appointment of
Arbitrator as it was according to the petitioner contrary to law.
On filing of the objections by the petitioner, a memo was filed by
the 1st respondent withdrawing the arbitration application filed
before the City Civil Court on the premise that Arbitral Tribunal
had been constituted and interim relief under Section 17 of the
6
Act had been granted by the sole Arbitrator. The petitioner
claims to have subsequently filed objections to the memo
seeking withdrawal of arbitration application. In view of the
interim order passed by the sole Arbitrator who has been
unilaterally appointed by the 1st respondent, the petitioner has
filed the subject petition seeking appointment of an Arbitrator of
a choice of this Court being a retired Judge of this Court in
terms of the Act.
6. The learned counsel appearing for the petitioner
submits that the appointment of sole Arbitrator by the 1st
respondent was without the consent of the petitioner and the
law mandates that sole Arbitrator at the instance of a particular
party would be contrary to law and seeks indulgence of this
Court for such appointment.
7. On the other hand, the learned senior counsel
representing the 1st respondent would vehemently refute the
submissions to contend that it
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