IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8^TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 30 OF 2025 BETWEEN:

1. MR GOPALAKRISHNA R S/O. ANANTHAKRISHNA AGED ABOUT 46 YEARS, R/ AT RKS FARM, MURAKANAHALLI, SHEELANERE HOBLI, KR PETE TALUK, MANDYA DISTRICT-571426

2. MR. JAGADEESH MR, S/O. ANANTHAKRISHNA AGED ABOUT 52 YEARS, Digitally R/ AT RKS FARM, signed by MURAKANAHALLI, SUNITHA K S SHEELANERE HOBLI, Location: KR PETE TALUK, HIGH COURT MANDYA DISTRICT-571426 OF KARNATAKA

3. MR. SAMPATH KRISHNA MR, S/O. ANANTHAKRISHNA AGED ABOUT 60 YEARS, R/ AT RKS FARM, MURAKANAHALLI, SHEELANERE HOBLI, KR PETE TALUK, MANDYA DISTRICT-571426 …PETITIONERS (BY SRI. RAMA RAMACHANDRA IYER., ADVOCATE)

AND:

1. MR A C SRINIVASA RAJU AGED ABOUT 56 YEARS S/O LATE A M CHANDRASHEKARARAJU RESIDING AT NO. 711, 7^TH MAIN, 3^RD PHASE J.P. NAGAR, BENGALURU - 560 078

2. MRS. A.S. VEENA RAJU, AGED ABOUT 50 YEARS W/O A C SRINIVASA RAJU RESIDING AT NO. 711, 7^TH MAIN, 3^RD PHASE J.P. NAGAR, BENGALURU - 560 078 …RESPONDENTS (BY SRI. R A CHANDRASHEKARA REDDY., FOR R1 & R2)

THIS CIVIL MISC. PETITION FILED UNDER SEC.11(6) OF ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT SOLE ARBITRATOR TO DETERMINE AND ADJUDICATE THE DISPUTE BETWEEN THE PARTIES HEREIN IN ACCORDANCE WITH THE SEC. 25(b) PROVISIONS OF THE ARBITRATION AND CONCILIATION ACT, 1996 REGISTERED LEASE AGREEMENT DATED 18.01.2020 VIDE ANNEXURE B.

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI

ORAL ORDER

The petitioners filed this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (‘Act’ for short) to appoint the Sole Arbitrator to determine and adjudicate the dispute between the parties in terms of clause 25(b) the registered lease agreement dated 18.01.2020 vide Annexure-B, as per the provisions of the Act.

2. Brief facts leading rise to the filing of this petition are as follows:

2.1. The petitioners are the landowners of the land measuring 17 acres 13.5 guntas situated at Murakanahalli Village, and the petitioners and the respondents have entered into a registered lease agreement pertaining to the lease property on 18.01.2020. The lease was for a period of 25 years and the respondents paid a sum of ₹22,00,000/- as an interest free security deposit, and also advanced an interest free loan of ₹15,35,000/- towards the conversion of the property from agricultural to industrial use. The agreement clearly stipulates that the respondents were required to pay a sum of ₹2,20,000/- as monthly rent for the use of the lease premises on or before 10^th day of each month. The respondents have failed to make a single payment towards the rent as per the terms and conditions mentioned in the registered lease agreement. The petitioners adjusted the interest free security deposit amount of ₹22,00,000/- as well as the interest free loan of ₹15,35,000/- towards the rent to be paid by the respondents. The respondents committed a default in making the payments. The petitioners issued legal notices to the respondents 26.07.2021 and 07.04.2022 by extending an opportunity to the respondents to make outstanding payments. The respondents, again ignored the same, and continued to illegally occupy the lease premises. The petitioners terminated the lease agreement by issuing a notice on 22.01.2024. The said notice was served on respondent No.2, but the notice issued to respondent No.1 was returned with the endorsement ‘not claimed’. There is an arbitration clause in the registered lease agreement. The petitioners invoked the arbitration clause by issuing an arbitration notice dated 27.05.2024 proposing the name of Sri. Bojanna.K.G, Advocate as a sole arbitrator, to which the respondents did not reply. Hence, this petition.

3. Heard the arguments of learned counsel for the petitioners and learned counsel for the respondents.

4. Learned counsel for the petitioners submits that, the