Karnataka HC Appoints Sole Arbitrator For Builder-Landowners’ Dispute Over Bengaluru Joint Development Agreement

The petitioner and respondents entered into a Joint Development Agreement dated 9 December 2015 for development of the respondents’ property into a residential apartment complex.

Clause U provided for arbitration of disputes, with Bengaluru as the venue.

After disputes arose, the petitioner issued a notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, 1996, on 19 May 2023. The respondents replied on 19 June 2023.

The petitioner then sought appointment of a sole arbitrator under Section 11 of the Act; the respondents did not oppose the appointment but asked that the parties’ contentions remain open.

Section 11(6) of the Arbitration and Conciliation Act, 1996 empowers the Court to appoint an arbitrator where the agreed appointment process has not resulted in an appointment.

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

The Court relied on Clause U of the Joint Development Agreement, which provides for arbitration of disputes arising between the parties.

The Court found that the Joint Development Agreement contained an arbitration clause covering disputes between the parties and that the petitioner had invoked it by issuing a notice under Section 21.

In light of the clause and the invocation notice, the Court concluded that appointment of a sole arbitrator was required.

The respondents’ request that their contentions remain open was addressed by expressly reserving all parties’ claims and contentions.

All claims and contentions were left open.

The Court also directed the Registry to communicate the order and return original documents after retaining photocopies, and directed the parties to appear before the Centre’s Director on 30 November 2026 at 11:30 a.m.