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2026 Supreme(Kar) 100

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ANU SIVARAMAN, VIJAYKUMAR A.PATIL, JJ.
Mr. H. L. Nagaraja S/o Mr. H.C.Lakshmipathaiah - Appellant
Vs.
M/s. Siddhshekha Developers LLP - Respondent
Miscellaneous First Appeal No.7153 Of 2024 (AA)
Decided On : 08-01-2026

Advocates:
Advocate Appeared:
For the Appellant : Sri. Mithun S.K., Adv.
For the Respondent: Sri. Udaya Holla, Sr. Adv. For Sri. Sanjay h. Sethiya, Adv.

The court upheld the trial court's dismissal of the appeal against the arbitration award, confirming that there was no patent illegality or grounds for interference under the Arbitration and Conciliation Act.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 34 and Section 37 - Appeal against the court's dismissal of an application under Section 34 challenging an arbitral award - Appellant claimed compensation for delays and failures regarding a Joint Development Agreement. The trial court upheld the arbitrator's findings. (Paras 1, 4, 22, 24).

(B) Powers of the Court under the Arbitration Act - Court cannot re-appreciate evidence or interfere unless there is a patent illegality found in the award. (Paras 10, 24)

(C) Status under RERA - The Court discussed the appellant's entitlement to be treated as an 'allottee' under the RERA Act, concluding that the appellant did not adequately demonstrate such status. (Paras 8, 20, 24)

Facts of the case:
The claimant sought payments and compensation from the developer under a Joint Development Agreement due to alleged delays and inefficiencies, while the developer made counterclaims against the claimant. Arbitrator found that delays were not the developer's fault. (Paras 1-6, 18-22)

Findings of Court:
The appeal was dismissed as no substantial or patent illegality was found in the arbitrator's decision regarding project delays and claim dismissals. (Paras 24)

Issues: Whether the appeal merits consideration against the arbitral award, including the status of the appellant as an allottee under the RERA Act. (Paras 1, 24)

Ratio Decidendi: The appellate court confirmed that the trial court rightly maintained the arbitrator's findings and clarified that it cannot reassess the merits unless a clear illegality is present. (Paras 10, 24)

Result: Appeal dismissed.

Table of Content
1. jurisdiction of high court under arbitration act. (Para 1 , 2)
2. factual background of joint development agreement. (Para 3 , 14 , 15 , 16)
3. no patent illegality found in the award. (Para 4 , 22)
4. arguments on the inability to challenge merits. (Para 5 , 6 , 10 , 11)
5. findings on delay and floor area ratio. (Para 19 , 20 , 21)
6. limits on re-evaluation of evidence in appeal. (Para 23 , 24)
7. conclusion: appeal dismissed. (Para 25)

JUDGMENT :

(PER: HON'BLE MRS. JUSTICE ANU SIVARAMAN)

This Miscellaneous First Appeal is filed under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996, ('the Arbitration Act' for short) against the judgment dated 21.09.2024 passed by the LXXIV Additional City Civil and Sessions Judge, Mayohall Unit, Bengaluru, (CCH-75) ('the trial Court' for short) in A.S. No.25003/2023.

2. We have heard Shri Mithun S.K., learned counsel appearing for the appellant and Shri. Udaya Holla, learned Senior Counsel as instructed by Shri. Sanjay H. Sethiya, learned Advocate appearing for caveator/respondent No.1.

3. The appellant was the claimant in A.C.No.134/2022. The claim was based on a Joint Development Agreement dated 22.10.2012. The claim raised was that respondent No.1 herein/developer had to pay an amount of Rs.47,46,17,454/- as compensation and in the alternative, to direct the developer to hand over 39,551 square feet of Super Built-Up area in the Schedule Property. The project in question was the construction of a multi- storied residential complex in property bearing No.98, Bull Temple Road, Basavanagudi, Bengaluru. The respondents being put on notice had submitted their objections to the claim statement and had also filed a counter claim as follows:-

"a) Declaring that the Owner/Claimant/Petitioner's share of Super Built up Area in the residential project put up on the Schedule Property stands reduced to 45,574.67 sq.ft., and 21,413.33 sq.ft. sq.ft. of Owner/Claimant/Petitioner's share of Super-Built up Area stands apportioned to the Developer/Respondent's share,

b) Directing the Owner/Claimant/Petitioner to execute fresh Sharing Agreement, incorporating the reduction of the Owner/Claimant/Petitioner's share to 45,754.67 sq.ft. Super-Built up Area, and apportioning 21,413.33 sq.ft. sq.ft. of Super-Built up Area, to the share of the Respondent, in relation to the residential project put up on the Schedule Property.

c) Directing the Owner/Claimant/Petitioner to pay a sum of Rs.4,72,80,130/- (Rupees Four Crores Seventy Two Lakhs Eighty Thousand One Hundred & Thirty only), to the Respondent towards GST, Deposits/Pro-rata Charges, Maintenance Charges and Electricity Charges,

d) Directing the Owner/Claimant/Petitioner to pay charges towards DG installation at the rate of Rs.75/sq.ft. of his reduced SBA,

e) Directing the Owner/Claimant/Petitioner to pay the club membership charges at the rate of Rs.5,00,000/- (Rupees Five Lakhs only) per flat, and Rs.10,00,000/- (Rupees Ten Lakhs only) per penthouse, as per the revised sharing agreement to be executed, after reduction of Owner/Claimant/Petitioner's share of SBA,

f) Directing the Owner/Claimant/Petitioner to pay a sum of Rs.10,00,00,000/- (Rupees Ten Crores only) to indemnify the Respondent for the violations committed by the Claimant/Petitioner and

g) Pass such other order/s as this Hon'ble Tribunal deems fit, in the facts and circumstances of the instant case."

4. The learned sole arbitrator had considered the contentions advanced on both sides and had rejected the claim. The counter claim of the respondent was allowed in part and a total amount of Rs.18,31,82,187/- was directed to be paid by the claimant to the developer with 12% interest per annum from date of claim petition till realization. The said award was challenged by the appellant by filing an application under Section 34 of the Arbitration Act which also came to be dismissed after considering the contentions elaborately.

5. The present appeal is preferred challenging the order of the

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