Karnataka HC Appoints Arbitrator In Dispute Over Construction Dues And Flat Allotment Under 2020 Agreement

The petitioner sought appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, relying on Clause 7 of an Agreement-cum-Memorandum of Understanding dated 12 September 2020 with respondent No. 1 concerning payment of outstanding construction amounts and allotment of flats

After disputes arose, the petitioner issued a notice invoking arbitration under Section 21 on 25 March 2023; the respondent did not respond

At the hearing, counsel for the respondents submitted that there was no dispute but agreed that the matter could be referred to arbitration, with the parties’ contentions left open

The petition against respondents 3 to 14 had been dismissed by an order dated 5 February 2026

Section 11(6) of the Arbitration and Conciliation Act, 1996 provides the basis for seeking court appointment of an arbitrator where the agreed appointment process is not completed.

Section 21 concerns commencement of arbitral proceedings upon receipt of a request to refer the dispute to arbitration.

Clause 7 of the parties’ agreement provides for disputes arising out of or connected with the agreement to be referred to a sole arbitrator and, in the event of non-agreement, permits appointment in accordance with the Act

The Court found that Clause 7 provided for arbitration of disputes arising under the agreement and that the petitioner had invoked that clause by serving a notice under Section 21

Given the respondent’s failure to respond to the notice, and its counsel’s position at the hearing that the matter could be referred to arbitration with all contentions reserved, the Court considered appointment of a sole arbitrator appropriate

All claims and contentions were left open; the parties were directed to appear before the Centre’s Director on 17 December 2026 at 11:30 a.m.