2022 Supreme(Online)(Kar) 59236
WP NO.100591/2021
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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
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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
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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.
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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.
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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)
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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