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2022 Supreme(Online)(Kar) 53174

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:-

3

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

5

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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