- 1 - HC-KAR NC: 2025:KHC:22859-DB COMAP No. 371 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JUNE, 2025 PRESENT THE HON'BLE MRS. JUSTICE ANU SIVARAMAN AND THE HON'BLE DR. JUSTICE K.MANMADHA RAO COMMERCIAL APPEAL NO. 371 OF 2023 BETWEEN: 1. SRI. CHANDRAPPA S/O LATE M. NANJAPPA AGED 60 YEARS 2. SMT. HEMALATHA W/O SRI. CHANDRAPPA AGED 46 YEARS 3. SRI. C. MANJUNATH S/O SRI. CHANDRAPPA AGED 18 YEARS SINCE MINOR REPRESENTED BY NATURAL GUARDIAN SRI. CHANDRAPPA ALL ARE RESIDING AT HIMMADIHALLI VILLAGE HAGADOORU DHAKALE K.R. PURAM HOBLI BENGALURU EAST TALUK BENGALURU-560 036 …APPELLANTS (BY SRI. S. KALYAN BASAVARAJ, ADVOCATE) Digitally signed by CHANNEGOWDA PREMA Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:22859-DB COMAP No. 371 of 2023 AND: M/S. SAROJ BUILDERS AND DEVELOPERS A PROPRIETORY CONCERN OFFICE AT No.5 SILVER SPRING ROAD MUNNEKOLALA MARATHAHALLI POST BENGALURU-560 037 REP BY ITS PARTNER SRI. CH. CHAKRADHAR …RESPONDENT (BY SRI. S. RAJASHEKAR, ADVOCATE FOR C/R) THE ABOVE COMAP / COMMERCIAL APPEAL IS FILED UNDER SECTION 13(1)(A) OF COMMERCIAL COURTS ACT, R/W UNDER SECTION 37 OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING THAT THIS HON'BLE COURT BE PLEASED TO (a) CALL FOR THE RECORDS IN A.C.No.183/2019 AT ARBITRATION AND CONCILIATION CENTRE, BENGALURU, (b) SET ASIDE THE JUDGMENT DATED 05.09.2023 PASSED BY THE LXXXVII ADDL. CITY CIVIL AND SESSIONS JUDGE (COMMERCIAL COURT), BENGALURU IN COM.A.P. No.6/2023 THEREBY CONFIRMING THE AWARD OF THE LEARNED ARBITRATOR IN AC No.183/2019 AND ETC. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:22859-DB COMAP No. 371 of 2023 CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE DR. JUSTICE K.MANMADHA RAO ORAL JUDGMENT (PER: HON'BLE MRS. JUSTICE ANU SIVARAMAN) Heard the learned counsel appearing for the appellants as well as the learned counsel appearing for the respondent. 2. It is submitted by the learned counsel appearing for the appellants that the Arbitrator had found in favour of the claimants/land owners and had awarded Rs.50,00,000/- as damages to them. However, the Commercial Court, considering an application under Section 34 of the Arbitration and Conciliation Act, 1996, set aside the Arbitral award on the ground that the claim was bad for non-joinder of necessary parties. It is submitted that however, thereafter, the Commercial Court went on to issue directions to the parties as is evident from the relief portion of the order under challenge. 3. Learned counsel for the appellants submits that the findings recorded by the Section 34 Court are completely unjustified and that Section 34 Court, would, by no stretch of - 4 - HC-KAR NC: 2025:KHC:22859-DB COMAP No. 371 of 2023 imagination, have the power to issue directions in a matter where the award stands set aside. It is submitted that Joint Development Agreement was entered into between several persons. It was one agreement with regard to 2 acres 37 guntas of property in Sy.Nos.2/2, 2/10, 2/11 and 2/12 of Hagadur Village, K.R. Puram Hobli, Bengaluru East Taluk. It is submitted that the claim had been filed by only 3 persons who were some of the land owners. It is submitted that the finding of the Section 34 Court was specifically that even the person who was a member of the very same family i.e., one C. Yuvaraj and who is the party to Joint Development Agreement was not a party to the claim petition. 4. Learned counsel appearing on either side submit that since the award now stands set aside and since the Section 34 Court has found that the claim itself was bad for non-joinder of necessary parties, the only recourse open to the parties would be to go back to the Arbitrator and to implead the necessary parties and face the arbitration afresh. Therefore, they contend that the Arbitral award which is rendered without the necessary parties on record as well as the orders passed by - 5 - HC-KAR NC: 2025:KHC:22859-DB COMAP No. 371 of 2023 Section 34 Court, which are under appeal herein can be set aside and the parties can be relegated to undergo the Arbitration afresh after impleading the necessary parties in accordance with law. 5. In view of the submissions made on either side, the order of Section 34 Court under challenge as well as the Arbitral Award shall stand set aside. The matter shall stand remanded for a fresh arbitration in accordance with law. 6. Learned counsel appearing on either side submit that the parties are agreeable to Shri. Justice Sreenivas Harish Kumar, Retired Judge of this Court be appointed as Arbitrator. 7. Taking note of the submissions made on either side, Shri. Justice. Sreenivas Harish Kumar, Retired Judge, "Brindavana", No.1878, Swami Vivekanananda Road, VII Block, Further Extension, Sir M Vishveshvarayyanagar Layout, Bengaluru-560 091, is appointed as arbitrator for considering the dispute between the parties. The learned counsel shall obtain the consent of Shri. Justice Sreenivas Harish Kumar and proceed with the matter. - 6 - HC-KAR NC: 2025:KHC:22859-DB COMAP No. 371 of 2023 8. The Arbitrator shall decide the date on which the parties shall mark appearance before the Arbitrator by issuing necessary notice. The parties may also be permitted to make necessary pleadings and impleadments before the Arbitrator in accordance with law. Sd/- (ANU SIVARAMAN) JUDGE Sd/- (DR.K.MANMADHA RAO) JUDGE RAK, List No.: 1 Sl No.: 7