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2022 Supreme(Online)(Kar) 59236

WP NO.100591/2021

: 1 :

IN THE HIGH COURT OF KARNATAKA

DHARWAD BENCH

DATED THIS THE 28TH DAY OF FEBRUARY, 2022

BEFORE

THE HON9BLE MR.JUSTICE SURAJ GOVINDARAJ

WRIT PETITION No.100591/2021 (GM ST/RN)

BETWEEN:

1 . SMT. SHALINI W/O VIJAY LATTHE

AGE:78 YEARS, OCC: HOUSEHOLD,

R/O MANGALWARPETH, TILAKWADI,

BELAGAVI 590 006.

2 . NITIN VIJAY LATTHE

AGE: 56 YEARS, OCC: BUSINESS,

R/O MANGALWARPETH, TILAKWADI,

BELAGAVI 590 006.

...PETITIONERS

(BY SRI. S C JAINAR, ADVOCATE)

AND:

1 .

NATIONAL HIGHWAY AUTHORITY OF INDIA

BY ITS MANAGER (TECH) AND

COMPETENT AUTHORITY FOR LAND ACQUISITION,

PROJECT IMPLEMENTATION UNIT,

VIDYAGIRI, DHARWAD 580 004.

2 .

THE GENERAL MANAGER (TECHNICAL)

AND COMPETENT AUTHORITY AND

PROJECT DIRECTOR, NHAI,

PROJECT IMPLEMENTATION UNIT,

VIDYAGIRI, DHARWAD 580 004.

3.

THE UNION OF INDIA

REPRESENTED BY INCOME TAX DEPT.,

R

WP NO.100591/2021

: 2 :

4.

THE STATE OF KARNATAKA

REP. BY SECRETARY

DEPARTMENT OF STAMPS & REGISTRATION

BENGALURU.

&RESPONDENTS

(BYSRI. SAGAR LADDAMATH AND SRI. B. P. MATHAPATI,

ADVOCATES FOR R1 &R2;

SRI. M. B. KANAVI, ADVOCATE FOR R3;

NOTICE NOT ORDERED TO R4)

---

THIS WRIT PETITION IS FILED UNDER ARTICLES 226

AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO

QUASH THE ORDER DTD.22.12.2020 PASSED BY THE

HON9BLE PRL. DIST JUDGE, DHARWAD UNDER ANNEXURE-J,

IN RESPECT OF THE STAMP DUTY TO PAY AS PER ARTICLE 11

OF KARNATAKA STAMP ACT.

THIS

PETITION

COMING

ON

FOR

PRELIMINARY

HEARING THIS DAY, THE COURT MADE THE FOLLOWING:

1.

The petitioners are before this Court seeking for the

following reliefs:

a.

Issue a writ in the nature of certiorari quashing the

impugned order dated 22.12.2020 passed by the

Hon9ble Principal District Judge, Dharwad in EP

No.302/2015 vide Annexure-J, in respect of the

Stamp duty to pay as per Article 11 of the

Karnataka Stamp Act.

b.

Pass any other order as this Hon9ble Court deems

fit on the facts and circumstances of the case.

2.

The grievance of the petitioners is that, the

petitioners are the decree holders and owners of the

land bearing survey No.604 measuring 05 acres 05

: 3 :

guntas, under which an extent of 10,220 sqmtr was

taken possession for construction of flyover by the

National Highways Authorities of India (NHAI). The

competent Authority had passed an award as regards

the lands acquired. However, being dissatisfied by

the said award, the petitioners submitted a reference

for arbitration on 31.10.2012, in terms of Section 3-

G(5) of the National Highway Act, 1956 (hereinafter

for brevity referred to as NHA), seeking for

enhancement of compensation.

3.

The Arbitrator has thereafter passed an award,

awarding compensation of ì4,186/- per sq.mtr along

with interest at 9% p.a. The respondent had made

payment of part of the award and the balance of

amount of the compensation not having been paid,

the claimants/Decree Holders have filed Execution

Petition No.302/2015 before the Principal District

Judge, Dharwad, which was objected to by the

respondent 3 NHAI.

: 4 :

4.

In the said execution proceedings, an objection was

raised that the award passed by the Arbitrator not

having been stamped in terms of Article 11 of the

Karnataka Stamps Act, 1957 (hereinafter for brevity

referred to as the KSA), the same could not be

considered for initiating and prosecuting execution

proceedings.

5.

The Executing Court vide the impugned order dated

22.12.2020 at Annexure-J was of the opinion that the

award passed by the Arbitrator is required to be

stamped. The petitioner not having stamped the said

document, the decree-holder was called upon to pay

the requisite stamp duty on the award within a period

of one month from the date of the order. Apart

therefrom, the Executing Court directed the NHAI the

judgment debtor to pay interest on the compensation

awarded from the date of taking possession of the

property, i.e., from the year 2002.

: 5 :

6.

It is this order that is challenged by the petitioners

only insofar as the direction by the Executing Court to

make payment of requisite stamp duty on the award

passed by the Arbitrator, by contending that the

same is not an arbitral award in terms of Article 11 of

the KSA.

7.

Sri. S. C. Jainar, learned counsel for the petitioners

submits that the award, which has been passed is as

regards compensation for land acquired in the land

acquisition proceedings initiated for and on behalf of

the NHAI. It is only on account of compensation

awarded being on the lower side that,in terms of

Section 3-G(5) of NHA, the petitioner was constrained

to approach the statutory Arbitrator, in terms of

statutory arbitration contemplated under the Act,

which

is not

a private

arbitration where the

petitioners could be said to have consented for

appointment of arbitrator and as such, though the

provision of Arbitration and Conciliation Act 1996

(hereinafter for brevity referred to as the A&C Act)

: 6 :

are made applicable to arbitration under Section 3-G

of the NHA, the compensation awarded would not be

an award in terms of Article 11 of the KSA, requiring

it to be stamped and as such, the arbitration award in

essence is an award of compensation, which is in

discharge of the sovereign powers of the State and as

such, he submits that the finding of the Executing

Court that stamp duty ought to be paid in terms of

Article 11 of the KSA, is misconceived.

8.

Per contra, Sri. Sagar Ladda, learned counsel, who

appears for NHAI submits that, since an Arbitral

award is sought to be enforced in the execution

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