At, High Court of Karnataka
By, THE HONOURABLE MRS. JUSTICE B.V. NAGARATHNA
For the Petitioner: B.V. Nidhishree, Advocate. For the Respondent: -------
(Prayer: The advocate for the petitioner has filed this petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 praying to confirm the appointment of Shri. S.N. Prashanth Chandra, Advocate as the sole arbitrator or appoint any other suitable arbitrator, for adjudication of disputes that have arisen between the petitioner and the respondent, pursuant to Clause 10 of the Agreement dated 1.1.2010 etc.)
1. This petition is filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act' for the sake of brevity).
2. Briefly stated, the facts are that respondent had engaged the services of the petitioner in Aviation Industry and that parties entered into an agreement dated 1.1.2010, a copy of which is produced as Annexure-B. Petitioner had inter alia to provide International Flight Services and Products to the respondent. According to the petitioner, it had carried out its obligations under the agreement in true spirit, but the respondent herein failed to pay for the services rendered by the petitioner as per the invoices raised by the petitioner. Petitioner issued notices to the respondent calling upon it to pay the arrears of dues to the petitioner on invoices raised, but there was no response to them. In the circumstances, petitioner has invoked Arbitration Clause -10 in the Agreement dated 1.1.2010. Notice to that effect was also issued by the petitioner on 30.6.2014, a copy of which is produced as Annexure-F nominating Shri. S.N.Prashanth Chandra, practicing advocate as the sole arbitrator. According to the petitioner, although the said notice was issued on the respondent and well as its registered office at T-55B, Elliots Beach Road, Basant Nagar, Chennai- 600 090, notice has not been served . In the circumstances, petitioner has filed this petition seeking appointment of an arbitrator.
3. I have heard learned counsel for petitioner.
4. It is noted that the service of notice on the respondent through registered post and acknowledgement due from this Court was not done and the petitioner took substituted service through newspaper publication and by order dated 30.4.2015, this Court has held that service on respondent is sufficient.
5. Drawing my attention to various documents annexed to the petition, learned counsel for petitioner submitted that having regard to the fact that respondent has failed to pay dues to the petitioner and has not responded to the communication issued by the petitioner invoking Arbitration Clause and has not even responded to the notices issued by this Court, this Court may appoint an arbitrator.
6. Having heard the learned counsel for petitioner and on perusal of the material on record, I find that a dispute has arisen between the parties which has to be resolved through arbitration in terms of Clause -10 of the Agreement dated 1.1.2010. Petitioner has named Shri. S.N.Prashanth Chandra, Advocate as the sole arbitrator. There being no objection to the said nomination made by the petitioner, appointment of Shri. S.N.Prashanth Chandra, as the arbitrator to arbitrate the dispute that has arisen between the parties is confirmed.
7. Learned counsel for petitioner submits that petitioner is agreeable for holding Arbitration proceedings at Arbitration Centre at Khanija Bhavan, Race Course Road, Bangalore - 1, under the provisions of Arbitration Centre - Karnataka ( Domestic and International) Rules, 2012.
Shri. S.N, Prashanth Chandra, an arbitrator appointed by this Court is requested to enter upon reference and arbitrate the dispute that has arisen between parties at the Arbitration Centre - Kha
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nija Bhavan, Pace Course Road, Bangalore -1, under the provisions of Arbitration Centre - Karnataka (Domestic and International) Rules, 2012. 8. Registry is directed to return original agreement dated 1.1.2010 forthwith, as copy of the same is produced as Annexure -B and the original agreement may be necessary for Arbitration Proceedings. 9. Petition is disposed in the aforesaid terms.