M/S BEML EMPLOYEES COOPERATIVE SOCIETY LTD vs M/S SKYTOP BUILDERS PVT LTD

Court
Karnataka High Court

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022




IN THE HIGH COURT OF KARNATAKA AT BENGALURU

TH
DATED THIS THE 5 DAY OF NOVEMBER, 2026


BEFORE

THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD

CIVIL MISC. PETITION NO. 706 OF 2022

BETWEEN:

M/S BEML EMPLOYEES COOPERATIVE SOCIETY LTD
C/O BEML LTD, BANGALORE COMPLEX
NEW THIPPASANDRA POST
BANGALORE-560075
REP. BY ITS PRESIDENT
SRI D M NAGESH.
…PETITIONER
(BY SRI. SHREEDHARA B E., ADVOCATE)







AND:

1. M/S SKYTOP BUILDERS PVT LTD
NO.175, 6TH CROSS
GANDHINAGAR, BANGALORE-560009
REP. BY ITS MANAGING DIRECTOR
SRI B L NAGENDRA PRASAD.

2. SRI B L NAGENDRA PRASAD
MANAGING DIRECTOR OF
M/S SKYTOP BUILDERS PVT LTD
TH
NO.175, 6 CROSS
GANDHINAGAR, BANGALORE-560009
…RESPONDENTS
(BY SRI. SADASHIVAIAH K G., ADVOCATE FOR R1 & R2)





THIS CIVIL MISC. PETITION IS UNDER SECTION 11(5) OF
THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING
PASS AN APPROPRIATE ORDER APPOINTING THE ARBITRATOR
AND TO RESOLVE THE DISPUTE, WHICH HAS ARISEN BY
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022


VIRTUE OF THE MODIFIED AGREEMENT DATED: 04/06/2009
ENTERED INTO BETWEEN THE PETITIONER SOCIETY AND THE
RESPONDENTS AS PER ANNEXURE-C AND ETC.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD
ORAL ORDER

1. This petition is filed under Section 11(6) of the
Arbitration and Conciliation Act, 1996 (for short, “the
Act”), seeking appointment of a sole Arbitrator for
adjudication of the disputes that have arisen between the
parties under the Modified Agreement dated 04.06.2009,
particularly in terms of Arbitration Clause thereof,
produced at Annexure-C.


2. The brief facts of the case are that petitioner Society
is a registered Co-operative Society under the provisions
of the Karnataka Co-Operative Societies Act, 1959.
Respondent No.1 is a Land Developer and worked as an
Agent on behalf of the petitioner for procuring the lands
for formation of layout and distribution of sites to its
members. Respondent No.2 is a Managing Director of
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022


respondent No.1. Thereafter, parties entered into an
Agreement dated 30.08.2002 (Annexure-B).
Subsequently, in the year 2009, the respondent
approached the petitioner seeking enhancement of rate of
payment due to various reasons. Accordingly, the parties
entered into a Modified Agreement dated 04.06.2009
(Annexure-C). Subsequently, disputes arose between the
parties in relation to the said Modified Agreement.


3. Upon disputes having arisen between the parties, the
respondents approached this Court in CMP No.121/2014
seeking appointment of an Arbitrator. This Court, by order
dated 21.04.2016, allowed the petition and appointed a
Sole Arbitrator to resolve the disputes between the
parties. Pursuant thereto, the learned Arbitrator passed an
award dated 07.11.2017. Aggrieved by the said award, the
petitioner filed Com.A.S.No.32/2018 under Section 34 of
the Act before the Additional City Civil and Sessions Judge,
Bengaluru. By judgment dated 28.02.2022,
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022


Com.A.S.No.32/2018 came to be allowed by setting aside
the award, reserving liberty to the petitioner-Society to
commence the arbitration proceedings afresh, if so
desired. Challenging the said judgment, the respondents
preferred Commercial Appeal No.91/2026 before this
Court. This Court, by order dated 13.07.2026, dismissed
the appeal.


4. In pursuance of the liberty reserved in
Com.A.S.No.32/2018, the petitioner, invoking the
arbitration clause contained in the Modified Agreement,
issued a notice dated 30.06.2022 under Section 21 of the
Act to the respondents, vide Annexure-M. The said
arbitration clause reads as under:
“In case of any disputes, the parties herein
have agreed to appoint Arbitrator as mutually agreed
to settle amicably as per the Indian Arbitration Act or
any of its modification thereof”

Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022



5. Despite service of the said notice, the respondents
failed to furnish any response. Hence, the present petition
is filed seeking appointment of a sole Arbitrator.

6. The learned counsel appearing for the respondents
submit that the petitioner had already approached this
Court in the earlier round of litigation and, therefore, in
view of the same, the present petition is not maintainable.


7. The said contention cannot be accepted. In the
earlier proceedings, the arbitral award was set aside by
the Trial Court, while expressly reserving liberty to the
petitioner-Society to commence arbitration proceedings
afresh, if so desired. The said judgment has also been
upheld by this Court in Commercial Appeal No.91/2026.
Therefore, the present proceedings are not barred merely
on the ground that because the petitioner had invoked the
arbitration clause on an earlier occasion. In view of the
liberty so reserved, the petitioner is justified in invoking
the arbitration clause afresh and seeking appointment of
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022


an Arbitrator. Accordingly, the objection raised by the
respondents regarding maintainability of the petition is
liable to be rejected.


8. Having regard to the existence of the arbitration
clause contained in the Agreement, which provides for
resolution of disputes arising between the parties, and the
fact that the petitioner has duly invoked the said
arbitration clause by issuing notice under Section 21 of the
Act, this Court is of the opinion that a Sole Arbitrator is
required to be appointed for adjudication of the disputes
between the parties.


9. Accordingly, the following:
ORDER

a) Civil Miscellaneous Petition is allowed .


b) Hon’ble Mr.Justice Ajit J Gunjal, Former Judge,
High Court of Karnataka, is appointed as the
Sole Arbitrator in the present case to arbitrate
the disputes between the parties at the
Arbitration and Conciliation Centre (Domestic &
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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HC-KAR
NC: 2026:KHC:61543
CMP No. 706 of 2022


CNR: KAHC010375232022


International), Bengaluru, as per the Rules
governing the said Arbitration Centre.


c) All the claims and contentions of the parties are
left open.


d) Registry is directed to communicate this order
via e-mail to the Arbitration and Conciliation
Centre (Domestic & International), Khanija
Bhavan, Bengaluru, and also to Hon’ble
Mr.Justice Ajit J Gunjal .


e) Registry is directed to return all the original
documents produced by any of the parties after
obtaining Photostat copies of the same.


f) Parties are directed to appear before the
Director, Arbitration and Conciliation Centre,
Bengaluru, on 16.12.2026 at 11:30 a.m.

Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA


(H.T. NARENDRA PRASAD)
JUDGE


DM
LIST NO.: 1 SL NO.: 26