SRI GAJENDRA REDDY vs M/S ACERON INFRASTRUCTURES

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HC-KAR
NC: 2026:KHC:61444
CMP No. 469 of 2024


CNR: KAHC010550042024







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. 469 OF 2024

BETWEEN:

SRI GAJENDRA REDDY
S/O BAKKI REDDY
AGED ABOUT 51 YEARS
R/AT OLD NO.21, NEW NO. 39
TH ND ND
12 CROSS, 2 CROSS, 2 MAIN
B.K.NAGAR, BANGALORE - 560022

ALSO THE PARTNER OF
M/S ABBU ASSOCIATES
A REGISTERED PARTNERSHIP FIRM
NO. 11, BRINDAVANA NAGAR
OPP. J.P.PARK, TANK BUND ROAD
MATHIKERE, BANGALORE – 560054
…PETITIONER
(BY SRI. VISHNU HEGDE., ADVOCATE)











AND:

1. M/S ACERON INFRASTRUCTURES
PARTNERSHIP FIRM NO.2386/2387
RITHIQ PLAZA, 60 FEET WIDE ROAD
SAHAKARNAGR, BENGALORE - 560 094
REP. BY ITS PARTNER A. MANJUNATH.

2. MR. A.MANJUNATH
S/O ARUNACHALAM
AGED ABOUT 45 YEARS
TH
R/AT NO.563, 8 MAIN ROAD
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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CMP No. 469 of 2024


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ND
HMT LAYOUT, 2 BLOCK
VIDYARANYAPURA
BANGALORE - 560 097.

3. MR. R. HARIKRISHNA
S/O V.RAJAGOPAL
AGED ABOUT 46 YEARS
R/ AT 330/2, CQAL LAYOUT
SAHAKARNAGAR, BANGALORE - 560 092.

4. MR. MOHAN KUMAR N
S/O NARASIMHAIAH
AGED ABOUT 51 YEARS
R/ AT NO.23, 1ST CROSS
ST
1 MAIN ROAD, GANAPATHI NAGAR
RD
3 PHASE, LAGGERE
BANGALORE - 560 058.

5. MR. MANJUNATH
S/O SHANKARAPPA
AGED ABOUT 57 YEARS
R/AT NO.80, SRI VINAYAKA
ST ND
1 BLOCK, 2 STAGE, NAGARBHAVI
BANGALORE - 560 072.

6. MR. C.VENKATESH
S/O CHIKKAHANUMAIAH
AGED ABOUT 62 YEARS
TH
R/ AT NO.295, 7 CROSS
6TH BLOCK, 2ND STAGE, NAGARBHAVI
BANGALORE-560 072.

7. MR B LAXMANA
S/O SRI BORALINGAIAHA
AGED ABOUT 56 YEARS
R/AT 40/1, MANJUSHREE
TH
6 MAIN ROAD, MEENAKSHI NAGAR
BASAVESHWARA NAGAR
BANGALORE - 560 079.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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CMP No. 469 of 2024


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8. MR. VINOD LAXMAN BADENKAL
S/O LATE LAXMAN BADENKAL
AGED ABOUT 48 YEARS
TH
R/ AT NO.657, 11 CROSS
COFFEE BOARD LAYOUT, HEBBAL
KEMPAPURA, BANGALORE - 560 024.

9. SMT. PREMA MOHAN KUMAR
W/O MR. MOHAN KUMAR N
AGED ABOUT 47 YEARS
ST
R/ AT NO.23, 1 CROSS, 1ST MAIN ROAD
RD
GANAPATHI NAGAR, 3 PHASE
LAGGERE, BANGALORE - 560 058.

10. MR. JAWAHAR LAL KOTHARI
S/O LATE BABULAL KOTHARI
AGED ABOUT 61 YEARS
R/AT 18/12, 4TH FLOOR, NS BHAVAN
TH
4 CROSS, GANDHI NAGAR
BANGALORE 560 009.

11. MR.MANJU PRABHU.C
S/O CHITTIBABU .A
AGED 40 YEARS
NO.445, 65TH CROSS, 5TH BLOCK
RAJAJI NAGAR, BANGALORE - 560 010.

12. SMT. N. SARASWATHI
D/O SRI R.NARAYAN
AGED ABOUT 51 YEARS
NO.995, NEW STREET (HOSA BEEDHI)
YELAHANKA OLD TOWN
YELAHANKA POST, BANGALORE - 560 064.

13. MR. N.UMESH
S/O R.NARAYAN
AGED ABOUT 48 YEARS
NO.995, NEW STREET (HOSA BEEDHI)
YELAHANKA OLD TOWN, YELAHANKA POST
BANGALORE - 560 064.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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CMP No. 469 of 2024


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14. SMT. SUBHAMANGALA
D/O SRI R.NARAYAN
AGED ABOUT 47 YEARS
NO.995, NEW STREET (HOSA BEEDHI)
YELAHANKA OLD TOWN, YELAHANKA POST
BANGALORE - 560 064.
…RESPONDENTS
(BY SRI. RAJANNA., ADVOCATE FOR R1 & R3:
PETITION IS DISMISSED AGAINST THE R3 TO R14:
V/O DATED: 05.02.2026)
THIS CMP IS FILED UNDER SECTION 11(6) OF TE
ARBITRATION AND CONCILIATION ACT 1996 PRAYING TO
ALLOW THE PETITION BY APPOINTING THE COMPETENT
PERSON AS THE SOLE ARBITRAROR AND DRECT HIM TO
ADJUDICATE ALL THE DISPUTES AND DIFFERENCE BETWEEN
THE PETITIONER AND THE RESPONDENTS ARE PER CLAUSE 7
OF THE TERMS OF THE AGREEMENT CUM MEMORANDUM OF
UNDERSTANDINGS DATED: 12.09.2020 AT ANNEXURE-A.
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 Agreement cum Memorandum of
Understandings dated 12.09.2020, particularly in terms of
Clause 7 thereof, produced at Annexure-A.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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2. The brief facts of the case are that the petitioner,
along with his brother, was a partner in M/s ABBU
Associates. Respondent No.1, represented by its partners,
respondent Nos.2 to 11, entered into a Construction
Agreement dated 05.07.2014 with the petitioner and his
brother for construction of a building in the schedule
property. Subsequently, a Memorandum of Understanding
dated 31.03.2016 and a Sale Agreement dated
18.04.2016 were executed in favour of the petitioner and
his brother. Thereafter, on 10.09.2020, the land owners,
respondent Nos.12 to 14, respondent No.1 and the
petitioner entered into an agreement to sell towards
payment of the balance amount and allotment of flats to
the petitioner. In view of certain issues concerning the
accounts, at the request of the petitioner, on 12.09.2020,
respondent No.1 and the petitioner entered into an
Agreement-cum-Memorandum of Understanding vide
Annexure-A agreeing to pay the outstanding construction
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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amount and allot flats to the petitioner, which contains an
arbitration clause under Clause 7. Subsequently, disputes
arose between the parties in relation to the said
Agreement regarding payment of the outstanding
construction amount and allotment of flats.


3. As the disputes arose between the parties, the
petitioner, invoking the arbitration clause contained in the
Agreement cum Memorandum of Understanding, issued a
notice dated 25.03.2023, vide Annexure-G, to the
respondent under Section 21 of the Act. The said
arbitration clause 7 reads as under:
“7. DISPUTE RESOLUTION
In the event of there being any dispute or difference
arising out of or in connection with the terms and
conditions of these presents or any of the related
writings or documents in connection with these
presents, the claims / disputes shall be referred to
the arbitration of a sole arbitrator as consented by
the Party of the first part and second part as per the
Arbitration and conciliation Act, 1996, or any
statutory modification or re-enactment thereof. In
the event of non-agreement between the Party,
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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CMP No. 469 of 2024


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either Party shall be entitled to get an arbitrator
appointed in accordance with the provisions of the
Arbitration and Conciliation Act, 1996, or any
statutory modification or re-enactment thereof shall
apply to such arbitration. All arbitration proceedings
under this Agreement shall be held at Bangalore.”


4. Despite service of the said notice, the respondent did
not furnish any response. Hence, the present petition is
filed seeking appointment of a sole Arbitrator.


5. Learned counsel appearing for the respondents
submitted that there is no dispute between the parties.
However, he submitted that, the matter may be referred
to the arbitrator, and that all the contentions of the parties
may be left open to be urged before the learned

Arbitrator.


6. Having regard to the existence of the arbitration
clause contained in the Agreement cum Memorandum of
Understanding, which provides for resolution of disputes
arising between the parties, and the fact that the
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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CNR: KAHC010550042024


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.


7. Accordingly, the following:
ORDER

a) Civil Miscellaneous Petition is allowed .


b) Hon’ble Mr.Justice K.Bhakthavatsala, 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 & 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
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

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CMP No. 469 of 2024


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Bhavan, Bengaluru, and also to Hon’ble
Mr.Justice K.Bhakthavatsala, Former Judge,
High Court of Karnataka .


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 17.12.2026 at 11:30 a.m.


Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA

(H.T. NARENDRA PRASAD)
JUDGE




HA
LIST NO.: 1 SL NO.: 33