Karthik Krishna vs A.C. Nagaraj

Mohan Shantanagoudar, J.—Petitioner and respondent have entered into Memorandum of Understanding dated 18.3.2006 as per Annexure-A in respect of procurement of lands in Avathi Village and surrounding Villages of Devanahalli Taluk. According to the petitioner, respondent has not performed his part of contract/understanding. In view of the same, the petitioner has sent legal notice to the respondent on 21.2.2007 calling upon the respondent to pay the dues to the petitioner as per the Memorandum of Understanding.

Clause-11 of the Memorandum of Understanding reveals that if there is any dispute between the parties, the same shall be settled through amicable negotiations. If the disputes cannot be resolved through negotiations, the same shall be referred to sole arbitrator appointed by the parties. Invoking the said Clause, petitioner issued legal notice on 15.3.2009 as per Annexure-B, to the respondent. In the said notice, the petitioner has nominated the arbitrator. However, no reply is received by the petitioner from the respondent. Hence, this petition is filed u/s 11 of the Arbitration and Conciliation Act, 1996.

Learned Counsel appearing on behalf of the respondent has filed the statement of objections, along with certain records. According to him, there are no dues to be paid by the respondent to the petitioner. According to him, the parties have fulfilled their part as per the Memorandum of Understanding.

The submissions made on behalf of the respondent are opposed by the learned Counsel appearing on behalf of the petitioner.

From the above, it is clear that both the parties are relying upon certain documents to prove their case. Each party is not agreeing with the case of other party. Which means, the dispute has arisen between the parties and the said dispute has arisen, based on pure facts. The dispute is not resolved as on this day. In view of the same, the matter has to be adjudicated upon before the Arbitrator in view of Clause 11 of the Memorandum of Understanding entered into between the parties. Accordingly, the following order is made:

Sri Kukkaje Ramakrishna Bhat, Retired District Judge, F-113, 4C, 4th Floor, Central Chambers, 2nd Main Road, Gandhinagar, Bangalore-560 009, is appointed as Sole Arbitrator, to resolve the dispute between the parties. The learned Arbitrator, on receipt of a copy of this order shall enter upon the reference, issue notice to the parties and then proceed to resolve the dispute, in accordance with the Arbitration and Conciliation Act, 1996.

Office is directed to send a copy of this order to the learned Arbitrator, forthwith. It is further directed to return all the original papers, if any, filed along with the petition to the petitioners to enable them to produce before the learned Arbitrator.

Petition is disposed of accordingly.