KMV PROJECTS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The second respondent is assigned with the construction of Private Bus Terminal and Commercial Complex at Channapatna to the petitioner under the Agreement dtd. 18/3/2013. This agreement contemplates resolution of disputes by arbitration and the procedure for constitution of an arbitral tribunal. The agreement for arbitration reads that if there is any dispute or difference, the same shall be referred to the sole arbitrator and if the parties fail to agree on the nomination of such sole arbitrator, the necessary appointment should be by one of the appointing authorities as mentioned therein.

(2.) The petitioner contends that though it could commence the construction, it could not complete the work because of the dispute raised by the owners of the land where the construction is commenced. In the early days, the petitioner has submitted a Running Bill for a sum of '4,74,06,698.73. As the respondents, who are constituted with the bifurcation of Chennapatna and Ramanagar Urban Development Authority, could not resolve the dispute with the owners of the subject land, the petitioner is constrained to issue legal notice dtd. 13/9/2021 for commencement of arbitration proceedings.

(3.) Sri Vasudeva Naidu S., the learned counsel for the petitioner, submits that the petitioner has commenced the writ proceedings in W.P.No.18044/2021 for a direction to the respondents to pay an amount of '4,74,06,698.73 and this writ petition is pending consideration. The petitioner has commenced the aforesaid writ petition for recovery of an admitted/undisputed amount and the present proceedings are for commencement of the arbitration proceedings or for adjudication of the petitioner's claim for damages because of the respondents' failure to enable resumption of construction. The petitioner's claim for damages is therefore not a part of the claim in the writ petition in W.P.No.18044/2021, and because the petitioner is able to satisfy all the requirements exercised under Sec. 11(6) of the Arbitration and Conciliation Act ,1996, the petition must be allowed.