Karnataka HC Appoints Sole Arbitrator For Owners’ ₹4.18-Crore Property Sale Dispute With Real Estate Firm

The petitioners claimed ownership of the schedule property and entered into an Agreement to Sell with respondent No. 1 on 21 June 2024 for a consideration of ₹4,18,00,000.

The agreement contained an arbitration clause providing for arbitration of disputes arising from it.

After disputes arose, the petitioners issued a notice dated 2 June 2026 invoking arbitration under Section 21 of the Arbitration and Conciliation Act, 1996.

The respondents did not respond, and, although served with notice of the petition, did not appear.

The petitioners therefore sought appointment of an arbitrator under Sections 11(5) and 11(6) of the Act.

The Court considered Sections 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996, in relation to the requested appointment of an arbitrator, and Section 21 in relation to the petitioners’ notice invoking arbitration.

The Court’s stated basis for appointment was the existence of an arbitration clause covering disputes between the parties and the petitioners’ invocation of that clause by notice; it cited no precedent.

The Court found that Clause 13 of the Agreement to Sell provided for arbitration of disputes arising in relation to the agreement, and that the petitioners had invoked that clause by issuing a Section 21 notice.

The respondents’ failure to respond to the notice or appear in the petition did not prevent the Court from appointing an arbitrator.

Although Clause 13 contemplated a three-member tribunal, the Court appointed a sole arbitrator without separately addressing that aspect of the clause.

The Court appointed retired District Judge Sri K. H. Mallappa as sole arbitrator to adjudicate the disputes at the Arbitration and Conciliation Centre (Domestic & International), Bengaluru.

The parties’ claims and contentions were left open, and they were directed to appear before the Centre’s Director on 18 December 2026 at 11:30 a.m.