IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2^ND DAY OF MARCH, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA COMMERCIAL APPEAL NO. 515 OF 2025 BETWEEN:

1. M/S S S POLICE PATIL AND COMPANY ENGINEERS AND CLASS I CONTRACTORS "MAHA SHARANU", P-149, FIRST FLOOR APMC YARD, AMARGOL HUBLI - 580 025 REPRESENTED BY SAYASGOUDA S POLICE PATIL AGED ABOUT 59 YEARS …APPELLANT (BY SRI YASHODHAR HEGDE, ADVOCATE)

AND:

Di gitally

1. THE DEPUTY COMMISSIONER signed by DHARWAD DISTRICT SRIDEVI S DHARWAD - 580 001 Location :

High Court …RESPONDENT of Karnataka (BY SRI S.SANTHOSH GOGI, ADDITIONAL ADVOCATE GENERAL A/W SRI K.S. HARISH, GOVERNMENT ADVOCATE)

THIS COMAP IS FILED UNDER SECTION 13(1-A) OF COMMERCIAL COURTS ACT, 2015 PRAYING TO PASS AN ORDER SETTING ASIDE THE ORDER DATED 04.08.2025 PASSED IN COM.A.P. NO.85/2024 BY THE LXXXIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, COMMERCIAL COURT, BENGALURU (CCH-84)

(ANNEXURE-A) & ETC.

THIS COMMERCIAL APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT, COMING ON FOR PRONOUNCEMENT THIS DAY, JUDGMENT WAS PRONOUNCED AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA C.A.V. JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

1. The appellant has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 [A&C Act], impugning an order dated 04.08.2025 passed by the learned LXXXIII Additional City Civil and Sessions Judge, Commercial Court, Bengaluru [Commercial Court] in COM.A.P.No.85/2024.

2. The respondent had filed the said petition under Section 34 of the A&C Act, praying for setting aside of the arbitral award dated 14.03.2024 [impugned award] delivered by an Arbitral Tribunal comprising a sole arbitrator [Arbitral Tribunal

3. The impugned award was rendered in relation to disputes that had arisen between the parties concerning the agreement dated

09.07.2018 [the Agreement].

4. On 18.11.2017, the respondent issued a notice inviting tenders for "Improvements of Roads and Drains in Annigeri Town Municipal limits of Dharwad District under Nagarothana (Municipality) 3^rd phase project". The appellant submitted its bid pursuant to the said notice. The appellant’s bid was accepted and he was declared as the successful bidder. The appellant was entrusted with the execution of works at a total value of `6,23,67,867/- (Rupees Six Crores Twenty-Three Lakhs Sixty- Seven Thousand Eight Hundred and Sixty-Seven only). The Letter of Acceptance [LOA] was issued by the respondent on 22.02.2018, accepting the appellant’s bid. Thereafter, the parties entered into the Agreement. The appellant was issued a notice dated 09.07.2018 to proceed. Under the Agreement, the appellant was required to commence work within two weeks of the notice.

5. The appellant claimed that immediately after receipt of the work order, it mobilised all the necessary resources to commence and complete the work in accordance with the construction programme. The execution of works was delayed on account of various reasons, which the appellant claims were attributable to the respondent. It claimed that the road from the bus stand to Agse cross traversed a private property for about 688 meters. The said property was not acquired by the respondent, and thus, the appellant was unable to enter the same to execute the works. Additionally, there was a delay in issuing the 'Good fit for construction' drawings for the road works; a portion of the site was not handed over, and the relocation of electrical poles was delayed. These issues delayed the execution of the works. The appellant claimed that for various reasons, it would execute works to an extent of only `4,50,29,972/-, that is, only 72.2% of the total work to be executed under the Agreement. This was solely for the reason attributable to the respondent. The appellant claimed that it submitted its fourth and final bill along with a price adjustment bill for a sum of `46,87,4