DATED THIS THE 30TH DAY OF OCTOBER 2013. BEFORE. THE HON'BLE MR.
JUSTICE H.BILLAPPA. CMP No.63/2013 ... AND: M/s.Liliput Kidswear Limited,.
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IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 30TH DAY OF OCTOBER 2013 BEFORE THE HON’BLE MR.JUSTICE H.BILLAPPA CMP No.63/2013 BETWEEN: M/s.Abhishek Developers, A Registered Partnership Firm, Having its office at No.42, Vittal Mallya Road, Bangalore-560 001. Rep. by its Director.
...Petitioner
(By Sri. Badri Vishal for Sri.H.Srinivas Rao, Adv.,) AND: M/s.Liliput Kidswear Limited, Having its registered office D-95, Okhla Industrial Estate, Phase 1, New Delhi 110020. Rep. by its Director.
…Respondent
(Respondent Sd.) ******** This Petition is filed under Sec.11(5,6) of Arbitration and Conciliation Act, 1996 praying to appoint an arbitrator on behalf of the respondent to adjudicate the dispute between the petitioner and the respondent.
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This Petition coming on for Admission this day, the Court made the following: ORDER The petitioner has filed this petition under Sec.11(5) and (6) of the Arbitration and Conciliation Act, 1996 praying to appoint an arbitrator on behalf of the respondent to adjudicate the dispute between the petitioner and the respondent.
2.
It is stated, the petitioner and the respondent
entered into a registered lease deed dated 12-10-2009 wherein it was agreed by the petitioner to let out Unit No.S60 at Mantri Square, Malleshwaram, for a period of six years. The respondent did not pay the rent and other charges. Therefore, the petitioner sent legal notice dated 12-4-2012 invoking clause 7.2(e)(ii) of the lease deed terminating the registered lease deed dated 12-10-2009 entered into between the petitioner and the respondent. The respondent was called upon to collect a sum of `.5,10,029/-.
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3.
The respondent received the legal notice on
24-4-2012. From 29-3-2012 till 15-12-2012, the respondent has closed the premises without conducting any business. Thereafter, the petitioner issued legal notice dated 7-11-2012 invoking clause 13.4 of the lease deed which stipulates that the disputes be resolved by way of arbitration. The petitioner nominated Justice Sri.A.B.Murgod, the retired Judge of this Court as its nominee Arbitrator.
The respondent failed to
respond to the arbitration notice.
Therefore, the petitioner
has prayed for appointment of Arbitrator in terms of the lease agreement deed dated 12-10-2009.
4.
The
respondent
is
served
and
remains
unrepresented.
5.
The learned counsel for the petitioner contended
that the respondent was in arrears of rent and inspite of legal notice dated 12-4-2012 an 7-11-2012 the respondent has not responded and therefore an Arbitrator may be appointed to
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adjudicate the dispute in terms of the lease agreement dated 12-10-2009.
6.
I find considerable force in the submission of the
learned counsel for the petitioner. respondent
have
entered
into
The petitioner and the lease
agreement
dated
12-10-2009 wherein the petitioner has agreed to let out Unit No.S60 at Mantri Square, Malleshwaram, for a period of six years. It is stated, the respondent did not pay the rents and other charges.
Therefore legal notice dated 12-4-2012 has
been issued calling upon the respondent to collect a sum of `.5,10,029/-. The respondent has not responded to the legal notice dated 12.4.2012.
Thereafter, legal notice dated
7-11-2012 has been issued calling upon the respondent to clear the outstanding dues failing which the petitioner would invoke clause 13.4 of the lease agreement dated 12-10-2009 which
stipulates
for
arbitration.
The
petitioner
has
nominated Justice Sri.A.B.Murgod, former Judge of this
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Court as its nominee arbitrator.
The respondent has not
responded to the legal notice.
7.
The lease agreement dated 12-10-2009 provides
for arbitration. Clause 13.4 reads as follows: 13.4 Any Disputes and differences whatsoever arising under or in connection with this Agreement which could not be settled by Parties through negotiations, after a period of 30 (Thirty) business days from the service of the Notice of Dispute, shall be finally settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996 and any amendments thereto and: (a)
There shall be 3 (Three) arbitrators, one to be
selected by Mantri, one to be
selected by the
Proposed Lessee and the third to be selected by the two arbitrations so appointed; who shall serve as the Chairman of the Arbitration Panel. The Parties shall, within 30 (Thirty) days of receiving a notice from the other Party, appoint 1 (one) arbitrator each and shall notify the same to the other Parties. In the event any party fails to appoint an arbitrator within the time framed specified in this clause, any
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other Party shall be entitled to make an application to the relevant court in accordance with the Arbitration
and
Conciliation
Act,
1996
for
appointment of an arbitrator (at the cost of the defaulting party) and the arbitrator so nominated shall be deemed to be the arbitrator nominated by the defaulting party. (b)
The
venue
of
arbitration
shall
be
in
Bangalore, India; (c)
All proceedings shall be conducted in English
and a daily transcript in English shall be prepared: (d)
The decision of the arbitrators shall be final
and binding on the parties; and (e)
The
arbitration
proceedings
shall
be
completed within 60 (Sixty) days from the date of constitution of the Arbitration Panel. (f)
The party losing the Arbitration shall bear the
entire arbitration charges and costs.’ It is clear, the lease agreement dated 12-10-2009 provides for arbitration. The petitioner has sent legal notice.
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The respondent has not responded to it.
Therefore, it is
proper to appoint an arbitrator to adjudicate the matter.
Accordingly,
the
petition
is
allowed.
Justice
Sri.A.B.Murgod, the former Judge of this Court, No.1075/E, 10th Main, HAL II Stage, Bangalore-560 008 and Justice Sri.T.J.Chouta, Former Judge of this Court, No.385, V Main, 11th Cross,
RMV II Stage, 2nd Stage, Dollars Colony,
Bangalore-560 094 are appointed as Arbitrators. They shall appoint the third Arbitrator in terms of Sec.11(3) of the Arbitration and Conciliation Act, 1996.
The parties shall be governed by the rules of Arbitration Centre, Bangalore and Arbitration and Conciliation Act, 1996 and relevant rules.
Registry is directed to communicate the order to the two Arbitrators,
Justice
Sri.A.B.Murgod
and
Justice
Sri.T.J.Chouta and also to the Arbitration Centre, Bangalore.
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The parties shall appear before the Arbitration Centre, Bangalore, on the date to be fixed.
Sd/JUDGE.
NT/-
