Citation : 2026 Latest Caselaw 775 Kant
Judgement Date : 3 February, 2026
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
DATED THIS THE 3RD DAY OF FEBRUARY, 2026
BEFORE
THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR
WRIT PETITION NO.204181 OF 2025 (KLR-CON)
C/W
WRIT PETITION NO.204159 OF 2025 (KLR-CON)
WRIT PETITION NO.200083 OF 2026 (KLR-CON)
IN WP NO.204181/2025:
BETWEEN:
THE DEPUTY GENERAL MANAGER (TECH.)
AND PROJECT DIRECTOR,
NATIONAL HIGHWAYS AUTHORITY OF INDIA
PROJECT IMPLEMENTATION UNIT - RAICHUR,
HAVING OFFICE AT:
PLOT NO. 37, "D" BLOCK,
KRISHNADEVARAYA NAGAR,
Digitally signed
by RENUKA BOLMANDODDI ROAD,
Location: HIGH NEAR YEGANOOR TEMPLE,
COURT OF RAICHUR-584 103.
KARNATAKA
...PETITIONER
(BY SMT. SRUTI C., ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS
PRINCIPAL SECRETARY,
REVENUE DEPARTMENT,
M.S. BUILDING,
BANGALORE-560 001.
2. THE DEPUTY COMMISSIONER,
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
RAICHUR DISTRICT,
BASAVESHWARA CIRCLE,
SAATH KUTCHERY,
RAICHUR-584 101.
3. THE ARBITRATOR (NH-748A)
AND ADDITIONAL DEPUTY COMMISSIONER,
RAICHUR,
BASAVESHWARA CIRCLE,
SAATH KUTCHERY,
RAICHUR-584 101.
4. THE SPECIAL LAND ACQUISITION OFFICER,
NHAI, 1ST FLOOR, ANUSHA COMPLEX,
OPPOSITE TO NAVODAYA MEDICAL COLLEGE,
MANTRALAYA ROAD,
RAICHUR-584 103.
5. THE SPECIAL LAND ACQUISITION OFFICER
AND COMPETENT AUTHORITY,
NHAI, DC COMPLEX, NAVANAGAR,
BAGALKOT-587 103.
6. SHRI. PAMPANAGOUDA
S/O PARVATHAREDDY,
AGED ABOUT 38 YEARS,
OCC: AGRICULTURE,
RESIDENT OF
MALLAT VILLAGE,
SIRAVAR TALUK,
RAICHUR DISTRICT - 584 129.
7. SHRI. CHANNABASANAGOUDA
S/O MALLANAGOUDA,
AGED ABOUT 68 YEARS,
OCC: AGRICULTURE.
8. SHRI. SHIVARAJA
S/O MALLANAGOUDA,
AGED ABOUT 67 YEARS,
RESPONDENT NOS.7&8
RESIDENTS OF:
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
MALLAT VILLAGE,
SIRAVAR TALUK,
RAICHUR DISTRICT - 584 129.
...RESPONDENTS
(BY SRI MALLIKARJUN SAHUKAR, AGA FOR R1 TO R3;
SRI MAHANTESH PATIL, ADVOCATE FOR R6 TO R8)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE CONVERSION ORDER
BEARING NO.401018 DATED 07.10.2022 PASSED BY
RESPONDENT NO.2 PRODUCED HEREWITH AS ANNEXURE-A.
II) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE CONVERSION ORDER
BEARING NO.409122 DATED 27.10.2022 PASSED BY
RESPONDENT NO.2 PRODUCED HEREWITH AS ANNEXURE-A1.
III) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE CONVERSION ORDER
BEARING NO.401013 DATED 07.10.2022 PASSED BY
RESPONDENT NO.2 PRODUCED HEREWITH AS ANNEXURE-A2.
IV) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE CONVERSION ORDER
BEARING NO.401011 DATED 21.09.2022 PASSED BY
RESPONDENT NO.2 PRODUCED HEREWITH AS ANNEXURE-A3.
V) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE CONVERSION ORDER
BEARING NO.409124 DATED 27.10.2022 PASSED BY
RESPONDENT NO.2 PRODUCED HEREWITH AS ANNEXURE-A4.
VI) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE IMPUGNED AWARD
PROCEEDINGS BEARING NO.SLAO/NHAI/BGK/NH-748A/2022-
23/ AWARD-30 DATED 05.07.2023 PASSED BY RESPONDENT
NO.5 IN RESPECT OF THE LANDS IN SY.NOS.110, 169/1, 46,
36, 47/1 SITUATED IN MALLAT VILLAGE AND HOBLI SIRAVAR
TALUK, RAICHUR DISTRICT PRODUCED HEREWITH AS
ANNEXURE-B. VII) ISSUE A WRIT IN THE NATURE OF
CERTIORARI QUASHING/SETTING-ASIDE THE IMPUGNED
ARBITRAL AWARD DATED 29.01.2025 PASSED RESPONDENT
NO.3 IN PROCEEDINGS BEARING NO.LAQ/NH/125, 124, 123,
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
122 AND 120/2023-24 PRODUCED HEREWITH AS ANNEXURE-
E.
IN WP NO.204159/2025:
BETWEEN:
THE DEPUTY GENERAL MANAGER (TECH.)
AND PROJECT DIRECTOR
NATIONAL HIGHWAYS AUTHORITY OF INDIA,
PROJECT IMPLEMENTATION UNIT-RAICHUR,
HAVING OFFICE AT:
PLOT NO.37, 'D' BLOCK,
KRISHNADEVARAYA NAGAR,
BOLMANDODDI ROAD,
NEAR YEGANOOR TEMPLE,
RAICHUR-584 103.
...PETITIONER
(BY SMT. SRUTI C., ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS
PRINCIPAL SECRETARY, REVENUE DEPARTMENT,
M.S. BUILDING,
BANGALORE-560 001.
2. THE DEPUTY COMMISSIONER,
RAICHUR DISTRICT,
BASAVESHWARA CIRCLE,
SAATH KUTCHERY,
RAICHUR-584 101.
3. THE ARBITRATOR
(NH-748A) AND ADDITIONAL
DEPUTY COMMISSIONER, RAICHUR,
BASAVESHWARA CIRCLE,
SAATH KUTCHERY
RAICHUR-584 101.
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
4. THE SPECIAL LAND ACQUISITION OFFICER,
NHAI, 1ST FLOOR, ANUSHA COMPLEX,
OPPOSITE TO NAVODAYA MEDICAL COLLEGE,
MANTRALAYA ROAD,
RAICHUR-584 103.
5. SHRI. CHANNAGOUDA
S/O ADANAGOUDA
AGED ABOUT 58 YEARS,
OCC: AGRICULTURE,
REPRESENTED BY GPA HOLDER
SHRI. SHIVARAJ
S/O P. RUDRAGOUDA,
RESIDING AT
H. NO. 6-1-2981/12, KUSHTAGI ROAD,
NEAR KUDALASANGAM TALKIES,
KHB COLONY, SINDHANUR - 56.
...RESPONDENTS
(BY SRI MALLIKARJUN SAHUKAR, AGA FOR R1 TO R3;
SRI MAHANTESH PATIL, ADVOCATE FOR R5)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE
A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING-ASIDE THE CONVERSION ORDER
BEARING NO.415028 DATED 21.11.2022 PASSED BY
RESPONDENT NO.2, PRODUCED HEREWITH AS ANNEXURE-
C (II) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE IMPUGNED ARBITRAL
AWARD DATED 29.01.2025 PASSED BY RESPONDENT NO.3
IN PROCEEDINGS BEARING NO. LAQ/NH/121/2023-24/736
PRODUCED HEREWITH AS ANNEXURE-D
IN WP NO.200083/2026:
BETWEEN:
THE DEPUTY GENERAL MANAGER (TECH.)
AND PROJECT DIRECTOR,
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
NATIONAL HIGHWAYS AUTHORITY OF INDIA,
PROJECT IMPLEMENTATION UNIT-RAICHUR,
HAVING OFFICE AT
PLOT NO.37, 'D' BLOCK,
KRISHNADEVARAYA NAGAR,
BOLMANDODDI ROAD,
NEAR YEGANOOR TEMPLE,
RAICHUR-584 103.
...PETITIONER
(BY SRI. SRUTI C., ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS
PRINCIPAL SECRETARY,
REVENUE DEPARTMENT,
M.S. BUILDING,
BANGALORE-560 001.
2. THE DEPUTY COMMISSIONER,
RAICHUR DISTRICT, BASAVESHWARA CIRCLE,
SAATH KUTCHERY,
RAICHUR-584 101.
3. THE ARBITRATOR (NH-748A) AND ADDITIONAL
DEPUTY COMMISSIONER, RAICHUR,
BASAVESHWARA CIRCLE,
SAATH KUTCHERY,
RAICHUR-584 101.
4. THE SPECIAL LAND ACQUISITION OFFICER,
NHAI, 1ST FLOOR, ANUSHA COMPLEX,
OPPOSITE TO NAVODAYA MEDICAL COLLEGE,
MANTRALAYA ROAD,
RAICHUR-584 103.
5. THE SPECIAL LAND ACQUISITION OFFICER
AND COMPETENT AUTHORITY,
NHAI, DC COMPLEX,
NAVANAGAR,
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C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
BAGALKOT-587 103.
6. SHRI. CHANNABASANAGOUDA
S/O MALLANAGOUDA,
AGED ABOUT 68 YEARS
OCC: AGRICULTURE,
RESIDENT OF MALLAT VILLAGE
SIRAVAR TALUK
RAICHUR DISTRICT - 584 129.
...RESPONDENTS
(BY SRI MALLIKARJUN SAHUKAR, AGA FOR R1 TO R3;
SRI MAHANTESH PATIL, ADVOCATE FOR R6)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
A) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE CONVERSION ORDER
BEARING NO.415026 DATED 21.11.2022 PASSED BY
RESPONDENT NO.2, PRODUCED HEREWITH AS ANNEXURE-
C B) ISSUE A WRIT IN THE NATURE OF CERTIORARI
QUASHING/SETTING ASIDE THE IMPUGNED ARBITRAL
AWARD DATED 29.01.2025 PASSED BY RESPONDENT NO.3
IN PROCEEDINGS BEARING NO.LAQ/NH/121 AND
126/2023-24/737 PRODUCED HEREWITH AS ANNEXURE-D.
THESE PETITIONS, COMING ON FOR ORDERS THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE PRADEEP SINGH YERUR
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WP No. 204181 of 2025
C/W WP No. 204159 of 2025
WP No. 200083 of 2026
HC-KAR
ORAL ORDER
These petitions are filed by the petitioner, who is the
National Highways Authority of India (NHAI).
2. The Writ Petition No.204181/2025 is filed
seeking to quash the conversion orders dated 07.10.2022
bearing No.401018, 27.10.2022 bearing No.409122,
07.10.2022 bearing No.401013, 21.09.2022 bearing
No.401011 and 27.10.2022 bearing No.409124, vide
Annexures - A1 to A4 respectively, passed by respondent
No.2/the Deputy Commissioner, quash/set aside the
award proceedings dated 05.07.2023 bearing
No.SLAO/NHAI/BGK/NH-748A/2022-23/AWARD-30, vide
Annexure-B, passed by respondent No.5/the Special Land
Acquisition Officer and Competent Authority for Land
Acquisition, NHAI and to set aside the arbitral award dated
29.01.2025 bearing No.LAQ/NH/125, 124, 123,
122&120/2023-24/789, vide Annexure-E, passed by
respondent No.3/the Arbitrator and the Additional Deputy
Commissioner.
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3. The Writ Petition No.204159/2025 is filed
seeking to quash the conversion order dated 21.11.2022
bearing No.415028 passed by respondent No.2, vide
Annexure-C and to set aside the arbitral award dated
29.01.2025 bearing No.LAQ/NH/121&126/2023-24/736
vide Annexure-D, passed by respondent No.3.
4. The Writ Petition No.200083/2026 is filed
seeking to quash the conversion order dated 21.11.2022
bearing No.415026 passed by respondent No.2, vide
Annexure-C and to set aside the arbitral award dated
29.01.2025 bearing No.LAQ/NH/121&126/2023-24/737
vide Annexure-D, passed by respondent No.3.
5. It is the contention of the learned counsel
Smt. Sruti C., for the petitioner that the Government of
India through its Ministry of Road Transport and Highways
issued notification bearing number S.O. 20 (E) under
Section 3(a) of the National Highways Act, 1956 (for short,
'the Act of 1956') on 04.01.2022, appointing respondent
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No.4 as a competent authority for acquisition of lands for
the project. She further contends that on 23.08.2022, vide
notification bearing number 3954(E), respondent No.5 was
appointed in the place of respondent No.4 as the
competent authority. Learned counsel further contends
that on the very next day i.e., on 24.08.2022, respondent
Nos.6 to 8 in Writ Petition No.204181/2025 applied for
conversion of their lands bearing Sy.Nos.110, 46 and 36
respectively for commercial use.
6. It is further contended by the learned counsel
that on 21.09.2022 within less than a month of the
application made, respondent No.2 without following the
proper procedure prescribed under the law, granted
conversion of the land in Survey No.36 for commercial
use. Thereafter, on 28.09.2022, respondent Nos.6 and 7
applied for conversion of the lands bearing Sy.Nos.169/1
and 47/1 respectively for commercial use. It is further
contended by the learned counsel that again in less than a
month without following the proper procedure, respondent
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No.2 granted conversion of the lands in Survey Nos.110
and 46 for commercial-agro-based industries use on
07.10.2022 and the lands bearing Sy.Nos.169/1 and 47/1
for commercial use on 27.10.2022.
7. It is further contended that despite conversion
orders having been granted less than a month before
preliminary Notification but after the project itself had
been notified, respondent No.5 assessed the nature of the
lands acquired from respondent Nos.6 to 8 as undeveloped
commercial lands and determined the market value of the
same as Rs.254/- per square meters in Writ Petition
No.204181/2025 and Rs.141/- per square meters in Writ
Petition Nos.204159/2025 and 200083/2026 and
accordingly compensation were awarded for the acquired
lands. The said compensation awards came to be
disbursed to respondent Nos.6 to 8 in Writ Petition
No.204181/2025, respondent No.5 in Writ Petition
Nos.204159/2025 and respondent No.6 in Writ Petition
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200083/2026 and the award proceedings came to be
passed on 05.07.2023.
8. It is further contended that being aggrieved by
the compensation awarded, the above said respondent
preferred claims under Section 3-G(5) of the Act of 1956
before respondent No.3. In the claim petitions so filed by
the respondents, it was contended that the petitioner
applied for sanction of the layout from the office of the
Assistant Director, Town and Country Planning Office,
Raichur only on 24.11.2022 i.e., after the date of
preliminary Notification. It is also contended that on
account of acquisition Notification, plan sanction was not
obtained and the claimants were unable to develop the
lands.
9. Learned counsel further contends that as per
the conversion orders, respondent Nos.6 to 8, made
applications for conversion only after the notification
issued on 04.01.2022 under Section 3(a) of the Act of
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1956. It is further contended that arbitral awards came to
be passed on 29.01.2025.
10. Learned counsel vehemently contends that the
conversion orders, award proceedings and arbitral awards
are all without jurisdiction, arbitrary, perverse and
amounts to subversion of the rule of law. It is further
contended that the impugned conversion orders passed by
respondent No.2 are without jurisdiction as it has been
passed after the issuance of notification under Section
3(a) of the Act of 1956, so also without following due
process of law. The learned counsel further contends that
it is apparently clear that the urgency in which the
conversion orders have been passed within less than a
month of the application having been made without
following due process and procedure of law and no 'NOC'
has been obtained from NHAI or from the State PWD, the
entire process of conversion orders and the awards are
liable to be set aside. It is also contended by the counsel
that the awards passed on the basis of the said conversion
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orders were in less than one month prior to the date of the
preliminary Notification determines the fraud played with
collusion and nexus of the authorities. It is contended that
respondent No.3 ought to have noticed that the claim of
the lands having been converted for commercial use is not
established in the light of the conversion having been
granted swiftly in less than one month from the date of
preliminary Notification.
11. Learned counsel further contends that
respondent No.3 has failed to apply his mind to the facts
and circumstances, the impugned conversion orders bars
the development of the lands within 40 meters of the
center of ROW of State Highway/National Highway. It is
further contended that respondent No.3 could not have
treated the lands as developed commercial lands in the
absence of any sanction plan from the competent
authority or in the absence of proof of any development of
the lands. Therefore, she contends that the entire
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determination of the value of the so-called developed
lands are arbitrary without any basis.
12. Learned counsel further contends that merely
because arbitral petitions filed by the petitioner are
rejected on the ground of they being barred by limitation,
the same will not deprive the petitioner from challenging
the conversion orders made in a hasty manner with
deliberate intent to make unlawful gain. In support of her
case, she has placed reliance on the following judgments;
i. Ranvir Singh and Another Vs Union of
India [(2005) 12 SCC 59] &
ii. Meghmala and Others Vs G. Narasimha
Reddy and Others [(2010) 8 SCC 383]
13. Per contra, learned counsel Sri Mahantesh Patil
appearing for respondent Nos.6 to 8 vehemently contends
that at the outset, the present petitions would not be
maintainable either in law or on facts and the same
deserve to be dismissed without delving further on merits.
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He further contends that the petitioner suppressing the
material facts has approached this Court without clean
hands, thereby it is an abuse of process of law. Learned
counsel further contends that the challenge is made by the
petitioner to the orders of conversion and the challenge to
the arbitral awards in these petitions, which again is not
sustainable. He further contends that the petitioner is
having no locus standi to challenge the orders of
conversion by contending that the aforesaid lands are
adjacent to the village and there are commercial
development surrounding the lands. It is also contended
that the lands are having NA potentiality, the same were
converted on 21.09.2022, 07.10.2022 and 27.10.2020. He
also denies that the orders of conversions passed without
following due process of law and takes up a contention
that the orders passed under Section 95 of the Karnataka
Land Revenue Act are amenable to challenge before the
Tribunal under Section 49(c) of the Karnataka Land
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Revenue Act, on this ground also, the present petitions are
liable to be dismissed.
14. Learned counsel for the respondents further
contends that the impugned arbitral awards dated
29.01.2025 were already challenged by the petitioner by
way of Arbitration Petition Nos.28/2025 and 29/2025
under Section 34 of the Act of 1996 before the Principal
District Judge, Raichur. The Arbitration Petitions came to
be dismissed vide order dated 01.12.2025 as barred by
the law of limitation. Therefore, he contends that the
petitioner having failed under Section 34 of the Act of
1996, cannot invoke the writ jurisdiction under Articles
226 and 227 of the Constitution of India, as the same is
impermissible. Learned counsel further contends that
upon dismissal of the arbitration petitions filed under
Section 34 of the Act of 1996, the petitioner has not
bothered to file an appeal under Section 37 of the Act of
1996.
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15. It is also contended that the petitioner filed the
present petitions only with a mala fide intent to avoid
deposit of compensation in the execution petitions pending
before the Principal District Judge, Raichur. Therefore, he
contends that to circumvent all these statutory bars of
limitation and the consequences of not having been
successful, the present writ petitions are filed which is
expressly prohibited by settled law in catena of judgments
of the Hon'ble Apex Court. Learned counsel inter alia
further contends that there is no illegality in the arbitral
awards, so also in the conversion orders passed by
respondent No.2. If at all the petitioner has any grievance
with regard to dismissal of the arbitral petitions, the same
would have to be challenged in the manner known to law
under Section 37 of the Act of 1996. Having not done so,
the present petitions are not maintainable.
16. Learned counsel further contends that the
Hon'ble Apex Court in the case of Deep Industries
Limited Vs. ONGC Limited [(2020) 15 SCC 706] has
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deprecated the interference under Articles 226 and 227 of
the Constitution of India of those matters governed under
the Act of 1996 and held that the Court must be extremely
circumspect in entertaining the petition under writ
jurisdiction, as the same cannot be used as a substitute
for statutory remedies. He also placed reliance on the
judgment of Sterling Industries Vs. Jayprakash
Associates Limited and Others [(2021) 18 SCC 367],
wherein it is held that "since such an application was not
tenable, we fail to understand how in a writ petition filed
against an order made by District Judge in an un-tenable
application the High court could have set aside partial
award". Learned counsel in support of his case has also
relied upon the following judgments;
i. SBP & Co. Vs Patel Engineering Limited
[(2005) 8 SCC 618];
ii. Bhaven Construction Vs Executive Engineer
[(2021) 2 SCC 793];
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iii. P. Radha Bai Vs P. Ashok Kumar [(2019)
13 SCC 445];
iv. NHAI Vs M. Hakeem [(2021) 9 SCC 1];
v. Executive Engineer, KPWD Vs B.R. Keshava
Murthy [ILR 2020 KAR 1563];
vi. Chief Engineer, PWD Vs RNS Infrastructure
Ltd. [(2019) SCC OnLine Kar 2656];
vii. Sree Balaji Developers Vs State of
Karnataka [2021 SCC OnLine KAr 1847] &
viii. NHAI Vs Sri H. Muniyappa [2023 SCC
OnLine Kar 4211].
17. Therefore, he contends that on the basis of
these judgments and the facts and circumstances of the
case, when the petitioner having failed to challenge the
dismissal order under Section 34 of the Act of 1996, the
present petitions would not survive for consideration, the
same are liable to be dismissed.
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18. Having heard the learned counsel for the
parties, the point that arises for consideration is as to
whether the present petitions are maintainable.
19. It is not in dispute that the petitioner is now
questioning the conversion orders passed by respondent
No.2, and the arbitral awards. Apparently, when the
petitioner was not successful in challenging the arbitral
awards before the Principal District and Sessions Judge,
Raichur and having not filed an appeal as contemplated
under Section 37 of the Act of 1996, now trying to
challenge the awards and the conversion orders, in my
humble opinion would not be sustainable, so also the
petitions filed by the petitioner challenging the arbitral
awards would not be maintainable before this Court in writ
jurisdiction under Articles 226 and 227 of the Constitution
of India. The Hon'ble Apex Court in the case of Sterling
Industries (supra) at paragraph Nos.2 and 3 held as
under:
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"2. Since such an application was not tenable, we fail to understand how in a writ petition filed against an order made by the District Judge in an untenable application, the High Court could have set aside the partial award. This is clearly contrary to law.
3. This Court in SBP & Co. v. Patel Engg.
Ltd. in para 45 held as follows:
"45. It is seen that some High Courts have proceeded on the basis that any order passed by an Arbitral Tribunal during arbitration, would be capable of being challenged under Article 226 or 227 of the Constitution of India. We see no warrant for such an approach. Section 37 makes certain orders of the Arbitral Tribunal appealable. Under Section 34, the aggrieved party has an avenue for ventilating his grievances against the award including any in-between orders that might have been passed by the Arbitral Tribunal acting under Section 16 of the Act. The party aggrieved by any order of the Arbitral Tribunal, unless has a right of appeal under Section 37 of the Act, has to wait until the award is passed by the Tribunal. This appears to be the scheme of the Act. The Arbitral Tribunal is, after all, a creature of a contract between the parties, the arbitration agreement, even though if the occasion arises, the Chief Justice
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may constitute it based on the contract between the parties. But that would not alter the status of the Arbitral Tribunal. It will still be a forum chosen by the parties by agreement. We, therefore, disapprove of the stand adopted by some of the High Courts that any order passed by the Arbitral Tribunal is capable of being corrected by the High Court under Article 226 or 227 of the Constitution of India. Such an intervention by the High Courts is not permissible."
20. In the case of National Highways Authority
of India Vs Sheetal Jaidev Vade and Others [(2022)
16 SCC 391], the Hon'ble Apex Court at paragraph
Nos.11 and 12 held as under:
"11. Therefore, once the original writ petitioner was having an efficacious, alternative remedy to execute the award passed by the learned Arbitral Tribunal/Court, by initiating an appropriate execution proceeding before the competent executing court, the High Court ought to have relegated the original writ petitioners to avail the said remedy instead of entertaining the writ petition under Article 226 of the Constitution of India which was filed to execute the award passed by the Arbitral Tribunal/Court. If the High Courts convert itself to the executing court and
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entertain the writ petitions under Article 226 of the Constitution of India to execute the award passed by the Arbitral Tribunal/Court, the High Courts would be flooded with the writ petitions to execute awards passed by the learned arbitrator/Arbitral Tribunal/Arbitral Court.
12. We disapprove the entertaining of such writ petitions under Article 226 of the Constitution of India to execute the award passed by the learned Arbitral Tribunal/Court, without relegating the judgment creditor in whose favour the award is passed to file an execution proceeding before the competent executing court."
21. The Hon'ble Apex Court in the case of
Navayuga Engineering Company Vs Bangalore Metro
Rail Corporation Limited [2021 SCC OnLine SC 469]
at paragraph Nos.4 and 5 held as under:
"4. Despite this Court repeatedly referring to Section 5 of the Arbitration Act in particular and the Arbitration Act in general and despite this Court having laid down-in Deep Industries Ltd. v. ONGC (2020) 15 SCC 706 that the High Court under Article 226 and 227 should be extremely circumspect in interfering with orders passed under the Arbitration
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Act, such interference being only in cases of exceptional rarity or cases which are stated to be patently lacking in inherent jurisdiction, we find that High Courts are interfering with deposit orders that have been made. This is not a case of exceptional rarity or of any patent lack of inherent jurisdiction.
5. This being the case, the impugned order of the High Court of Karnataka is set aside and that of the learned Additional City Civil and Sessions Judge is restored. The deposit of 60% and security for the remainder is to be made within four weeks from the date of our order."
So also in the case of Electrosteel Castings Limited
Vs UV Asset Reconstruction Company Limited &
Ors., [(2022) 2 SCC 573] the Hon'ble Supreme
Court at paragraph Nos.7.2 and 7.3 held as under:
"7.2 However, it is required to be noted that except the words used 'fraud'/'fraudulent' there are no specific particulars pleaded with respect to the fraud'. It appears that by a clever drafting and using the words 'fraud'/'fraudulent' without any specific particulars with respect to the fraud', the plaintiff-appellant herein intends to get out of the bar under Section 34 of the SARFAESI Act
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and wants the suit to be maintainable. As per the settled preposition of law mere mentioning and using the word 'fraud'/'fraudulent' is not sufficient to satisfy the test of fraud'. As per the settled preposition of law such a pleading/using the word 'fraud'/'fraudulent' without any material particulars would not tantamount to pleading of 'fraud'. In case of Bishundeo Narain and Anr. (Supra) in para 28, it is observed and held as under:-
".... Now if there is one rule which is better established than any other, it is that in cases of fraud, undue influence and coercion, the parties pleading it must set forth full particulars and the case can only be decided on the particulars as laid. There can be no departure from them in evidence. General allegations are insufficient even to amount to an averment of fraud of which any court ought to take notice however strong the language in which they are couched may be, and the same applies to undue influence and coercion. See Order 6. Rule 4. Civil Procedure Code."
7.3 Similar view has been expressed in the case of Ladli Parshad Jaiswal (Supra) and after considering the decision of the Privy Council in
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Bharat Dharma Syndicate vs. Harish Chandra (64 IA 146), it is held that a litigant who prefers allegation of fraud or other improper conduct must place on record precise and specific details of these charges. Even as per Order VI Rule 4 in all cases in which the party pleading relies on any misrepresentation, fraud, breach of trust, wilful default, or undue influence, particulars shall be stated in the pleading. Similarly in the case of K.C Sharma & Company (Supra) it is held that 'fraud' has to be pleaded with necessary particulars. In the case of Ram Singh and Ors. (Supra), it is observed and held by this Court that when the suit is barred by any law, the plaintiff cannot be allowed to circumvent that provision by means of clever drafting so as to avoid mention of those circumstances by which the suit is barred by law of limitation."
22. The Hon'ble Apex Court in the case of Serosoft
Solutions Private Limited Vs. Dexter Capital Advisors
Private Limited [2025 INSC 26] at paragraph Nos.14 to
16 held as under:
"14. In any event of the matter when the Arbitral Tribunal by its order dated 09.10.2024
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held 'that far and no further'
respondent/claimant's endeavour to cross-
examine RW-1, the High Court should have restrained itself from interfering. In order to justify its interference and extension of time, the High Court has referred to and relied on a judgment of the same Court. Certain conditions for exercising jurisdiction under Articles 226/227 are mentioned in the judgment. Conditions (v) and (vi) of the said judgment could have provided sufficient guidance for the High Court to consider whether interference is warranted or not. The relevant portion of the said order is as under:-
"(v) Interference is permissible only if the order is completely perverse i.e. the perversity must stare in the face.
(vi) High Courts ought to discourage litigation which necessarily interfere with the arbitral process.
(vii) Excessive judicial interference in the arbitral process is not encouraged.
(viii) It is prudent not to exercise jurisdiction under Articles 226/227.
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(ix) The power should be exercised in 'exceptional rarity' or if there is 'bad faith' which is shown.
(x) Efficiency of the arbitral process ought not to be allowed to diminish and hence interdicting the arbitral process should be completely avoided."
15. It is evident from the above that even as per the quote hereinabove interference under Article 226/227 is 'permissible only if the order is completely perverse i.e. that the perversity must stare in the face.' Condition (vi) to (x) underscores the reason why High Courts ought not to interfere with orders passed by the Arbitral Tribunals for more than one reason.
16. We looked into the other parts to see if the High Court has in fact found any perversity in the decision of the Tribunal. We found none. The High Court has not bothered to indicate under what circumstances the order passed by the Tribunal is perverse. All that the High Court has said is that cross-examination is one of the most valuable and effective means of discovering the truth. This is a normative statement, and
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nobody disputes the said principle. The only enquiry required was whether there is denial of opportunity for an effective cross-examination of the witness. There is absolutely no discretion about this aspect of the matter, except to say that in the facts and circumstances of the case and as an exceptional circumstance as well, the request of the respondent/claimant is excessive.
23. Having heard the learned counsel for both the
parties and having considered the judgments relied by the
learned counsel for the petitioner, learned counsel for the
respondents and the judgments relied by this Court, it is
apparently seen that the present petitions in whatsoever
manner would not be maintainable, as the petitioner would
not be entitled to maintain the writ petitions under Articles
226 and 227 of the Constitution of India when it has
already suffered an order under Section 34 of the Act of
1996. Hence, the present writ petitions are not
maintainable as these are barred by law, so also the
present writ petitions cannot be entertained to consider
other prayers of the petitions i.e., orders of conversion
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which ought to have been challenged in the manner known
to law. For the aforesaid reasons, what un-mistakenly
emerges is that in catena of judgments, the Hon'ble
Supreme Court has clearly laid down the law with regard
to any challenge made to the arbitral award and the
dismissal of the petition filed under Section 34 of the Act
of 1996 cannot be entertained in the writ jurisdiction
under Articles 226 and 227 of the Constitution of India.
Therefore, this Court cannot go into the other grievances
as to how the conversion orders made as the remedy is
available to the petitioner to approach appropriate forum
in the manner known to law. The point raised is answered
accordingly, I proceed to pass the following:
ORDER
(a) The Writ Petitions are devoid of merit.
Accordingly, stand dismissed.
(b) Ordered accordingly.
Sd/-
(PRADEEP SINGH YERUR) JUDGE
RSP LIST NO.: 1 SL NO.: 1 CT:SI
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