M/S MAHALASA STONE CRUSHER, vs SRI. S.J.MARUTHI PRASAD,
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 13 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD
CIVIL MISC. PETITION NO. 420 OF 2026
BETWEEN:
1. M/S MAHALASA STONE CRUSHER
A PARTNERSHIP FIRM, REGISTERED UNDER
THE PROVISIONS OF KARNATAKA PARTNERSHIP
(REGISTRATION OF THE FIRM) RULES, 1954
HAVING THEIR PRINCIPAL PLACE OF BUSINESS AT
NO.68, BHEL LAYOUT, PATTANAGERE
NORTH, R. R.NAGAR, BENGALURU-560 098
REP. BY ITS PARTNERS
SRI. A. RAJESH PAI AND 6 OTHERS.
2. SRI A. RAJESHPAI,
S/O LATE A. PANDURANGA PAI
AGED ABOUT 53 YEARS
R/O. NO.68, BHEL LAYOUT
PATTANAGERE NORTH, R.R. NAGAR
BENGALURU-560 098.
3. SRI G. CHANDRAKUMAR
S/O. GANGADHARAPPA.S.
AGED ABOUT 55 YEARS
ND
R/O. 19, 2 CROSS, MUNISHAMAPPA LAYOUT
AMRUTH NAGARA, BENGALURU-560 092.
4. SMT. SHAMANTHA R. PAI
W/O. RAJESH A. PAI
AGED 43 YEARS
NO. 68, BHEL LAYOUT
NEAR MARAMMA TEMPLE
BENGALURU SOUTH,
BENGALURU-560 098.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
5. SRI S. NATARAJ
S/O. M. SEENAPPA
AGED 50 YEARS
WARD NO. 14, NEAR VANI SCHOOL
SONNASHETTY HALLI, CHINTAMANI
CHIKKABALLAPURA-563 125.
6. SMT. HEMAVATHI
W/O. LATE M. KRISHNAPPA
AGED 63 YEARS
BEHIND MUNESHWARA SCHOOL
AVALAHALLI, VIRGO NAGAR
BENGALURU-560 049.
7. SRI SHANMUGA.N.
S/O. NATARAJ
AGED 45 YEARS
NANJUNDESHWAR BUILDING MATERIAL SUPPLIER
NO. 26, CHIKKABASAVANAPURA
VIRGO NAGAR, BENGALULRU-560 049.
…PETITIONERS
(BY SMT. PRIYANKA M R., ADVOCATE FOR
SRI. HANUMANTHARAYA D., ADVOCATE)
AND:
1. SRI. S.J.MARUTHI PRASAD
S/O JAVAREGOWDA
AGED 45 YEARS
R/O KADUSONNAPPANAHALLI
KANNUR POST, BIDARAHALLI HOBLI
BENGALURU EAST TALUK-562149.
2. SMT. SHILPA S
W/O S.J.MARUTHI PRASAD
AGED 41 YEARS
NO.58, SHIVANANDA NAGAR, NAGARBHAVI,
BENGALURU, KARNATAKA-560 07.
…RESPONDENTS
(BY SRI.SARAVANA S., ADVOCATE FOR RESPONDENTS)
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
THIS CMP IS FILED UNDER SECTION 11 OF ARBITRATION
AND CONCILIATION ACT 1996 PRAYING TO APPOINT A SOLE
INDEPENDENT, AND IMPARTIAL ARBITRATOR TO ADJUDICATE
UPON ALL THE CLAIMS, DISPUTES, AND DIFFERENCES THAT
HAVE ARISEN BETWEEN THE PETITIONERS AND THE
RESPONDENTS OUT OF, AND IN CONNECTION WITH IN LIEU
OF CLAUSE 29 OF THE RECONSTITUTION OF MAHALASA
STONE CRUSHER PARTNERSHIP FIRM AGREEMENT DATED
27.12.2021 VIDE ANNEXURE A AND AS PER THE ORDER DATED
28.04.2026 PASSED BY THE IX ADDITIONAL DISTRICT AND
SESSIONS JUDGE AT BENGALURU RURAL DISTRICT,
BENGALURU IN A.A. NO. 13/2025 VIDE ANNEXURE S.
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 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 Reconstitution of Partnership Deed dated
27.12.2021, particularly in terms of Clause 29 thereof,
produced at Annexure-A.
2. The brief facts of the case are that petitioner Nos. 2
and 3 and respondent No. 1 are the partners of petitioner
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
No.1, a partnership firm engaged in mining and crushing
operations and the establishment of a stone crusher.
Petitioner Nos.2 and 3 and respondent No.1 had initially
entered into a Partnership Deed dated 26.10.2018
(Annexure-C). Subsequently, owing to the induction of
new partners, the partnership firm was reconstituted
under a Reconstituted Partnership Deed dated 27.12.2021
(Annexure-A). Thereafter, disputes arose between the
parties in relation to the said Deed. As the disputes arose
between the parties, the respondents referring to the
arbitration clause contained in the Deed, issued a notice
dated 10.11.2025 vide Annexure-P, to the petitioners
under Section 21 of the Act. The petitioners filed
A.A.No.13/2025 before the IX Addl. District and Sessions
Judge, Bengaluru under Section 9 of the Act. The Trial
Court, by order dated 28.04.2026 allowed the application.
The order dated 28.04.2026 reads as under:
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
“The application filed by the applicants under
Section 9 of the Arbitration and Conciliation Act, is
hereby allowed.
By way of an interim injunction, Respondents
No. 1 and 2 are hereby restrained from interfering
with the scheduled properties and from operating the
bank transactions of the partnership firm, i.e.
account maintained at SBM Chokkahalli Branch,
Account No. 38496206812, in any manner for a
period of 90 days or until the commencement of the
arbitration proceedings before the arbitral tribunal,
whichever earlier.
Further, the Respondent No.3 Bank Manager is
directed to honor the cheque exceeding Rs.25,000/-
if it bear the signatures of petitioners No.1 to 7 in the
Bank account No. 38496206812 for a period of 90
days from the date order or until the commencement
of the arbitration proceedings before the arbitral
tribunal, whichever earlier.
Further, Petitioners No. 1 to 7 are directed to
maintain accurate accounts of the expenses and
income of the partnership firm from the date of the
petition until the commencement of the arbitral
proceedings. They shall also disclose the complete
accounts and statutory records to Respondents No. 1
and 2 prior to the commencement of the arbitral
proceedings.”
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
3. Pursuant to the order dated 28.04.2026 passed by
the Trial Court in A.A.No.13/2025, the petitioners have
filed the present petition.
4. The arbitration clause 29 of the Reconstitution of
Partnership Deed dated 27.12.2021 reads as under:
“29. Any dispute/or difference which may arise
between the partners will regard to construction,
meaning or effect, of this deed or any part thereof or
in respect of accounts, profit and loss of the business
or the right and liabilities of the partnership under
this deed or dissolution or winding up of is to be
referred to an ARBITRATOR and provisions of,
Arbitration Act 1996 shall apply. All proceedings
arising under the Arbitration Act shall be held at
Bengaluru.”
5. The learned counsel appearing for the respondents
submits that respondents have no objection to the
appointment of sole Arbitrator. However, he seeks that all
the contentions of the parties be kept open to be urged
before the learned Arbitrator.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
6. Having regard to the existence of the arbitration
clause contained in the Deed, 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.
7. Accordingly, the following:
ORDER
a) Civil Miscellaneous Petition is allowed .
b) Hon’ble Mr.Justice B.A.Patil, 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.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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HC-KAR
NC: 2026:KHC:57448
CMP No. 420 of 2026
CNR: KAHC010515412026
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 B.A.Patil .
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 20.11.2026 at 11:30 a.m.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
(H.T. NARENDRA PRASAD)
JUDGE
DM
LIST NO.: 1 SL NO.: 13