Karnataka High Court Appoints Arbitrator In ₹2.53 Cr. Dispute Concerning Military Engineer Services

The Karnataka High Court on 8 October appointed retired District Judge Prabhavathi Hiremath as the sole arbitrator to resolve contractual disputes between Varsha Constructions and the Military Engineer Services over the construction of an Academic Block at the Air Force Technical College in Jalahalli, Bengaluru.

A Single Judge Bench of Justice H.T. Narendra Prasad observed:

“Having regard to the existence of the arbitration clause contained in the Construction Agreement, which provides for resolution of disputes arising between the parties, and the fact that the petitioner has duly invoked the said arbitration clause by issuing notice under Section 21 of the Act, this Court is of the opinion that a Sole Arbitrator is required to be appointed for adjudication of the disputes between the parties.”

Varsha Constructions was awarded the construction work under an agreement dated 13 February 2018. After completing the work and obtaining certification from the respondents, the contractor submitted a final bill claiming Rs. 2,53,33,586 towards additional works, escalation, prolongation expenses and other contractual dues. The respondents did not admit the claims, giving rise to disputes under the agreement.

The company invoked the arbitration clause through notices dated 13 June 2024, 30 September 2024 and 6 February 2025. However, the Chief Engineer of the Air Force did not respond despite service of the notices.

The Court noted that the respondents remained unrepresented despite service of notice of the petition. It appointed Hiremath as the sole arbitrator at the Arbitration and Conciliation Centre (Domestic & International), Bengaluru, and directed the Registry to communicate the order to the Centre and the arbitrator.

Accordingly, the High Court appointed a sole arbitrator to adjudicate the disputes, leaving all claims and contentions of the parties open.

For Petitioner: Advocates Nehal Tapadia, Prashant Dharmasinh Popat