- 1 - NC: 2025:KHC:7852 WP No. 18833 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 18833 OF 2021 (GM-RES) BETWEEN: 1. MR. OMAR ABDULLAH SAIT S/O LATE MR. HAJEE ABDULLA SAIT, AGED ABOUT 70 YEARS, 2. MRS. PRAVEEN OMAR W/O MR. OMAR ABDULLAH SAIT, AGED ABOUT 58 YEARS, 3. MR. ATEEF OMAR S/O MR. OMAR ABDULLAH SAIT, AGED ABOUT 28 YEARS, WITH THEIR OFFICE SITUATED AT: "GRACE TOWERS" REAR GROUND FLOOR, NO.70, MILLERS ROAD, BANGALORE-560 052. THE PETITIONER NO.S 2 & 3 ARE REPRESENTED BY THEIR GENERAL POWER OF ATTORNEY HOLDER, MR. OMAR ABDULLAH SAIT, PETITIONER NO.1 HEREIN. …PETITIONERS (BY SRI. JOSEPH ANTHONY., ADVOCATE) AND: 1. THE DIRECTOR, KARNATAKA ARBITRATION AND CONCILIATION CENTRE, BENGALURU, Digitally signed by PREMCHANDRA M R Location: High Court of Karnataka - 2 - NC: 2025:KHC:7852 WP No. 18833 of 2021 HAVING OFFICE, 3RD FLOOR, EAST WING, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU-560 001. 2. M/S. NAVNEET MOTORS PVT LTD., HAVING ITS OFFICE AT: SY.NO.4, KONNAPPANA AGRAHARA, BEGUR HOBLI, HOSUR ROAD, NEAR ELECTRONIC CITY, BANGALORE-560 100. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. MR. VISHWANATHAN KARTHIKEYAN. …RESPONDENTS (BY SRI. B.PRAMOD., ADVOCATE FOR R1; SRI. ADINATH NADRE., ADVOCATE R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRTI PETITION IS LISTED FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Joseph Anthony., counsel for the petitioners and Sri.B.Pramod., counsel for respondent No.1 have appeared in person. 2. The captioned Writ Petition is filed seeking following reliefs: - 3 - NC: 2025:KHC:7852 WP No. 18833 of 2021 (a) Issue a Writ of Certiorari or any other Writ, order or direction to quash the impugned order dated December 21, 2020 vide Annexure-A, rendered by respondent No.1, insofar as payment of Rs.11,47,500/- (Rupees Eleven Lakh Forty- Seven Thousand Five Hundred Only) towards advocate fees, miscellaneous expenses and stamp duty is concerned. (b) Remand the matter to the file of respondent No.1, thereby passing a consequential direction that respondent No.1 may be directed to compute and assess the costs in Arbitration Claim No.46/2020 in pursuance of Arbitral Award dated December 09, 2020 vide Annexure-B only upon providing the petitioners herein an opportunity to ventilate their claims with regard to computation and assessment of costs therein. 3. The short facts are these: The petitioners contends that they are the absolute owners of all that piece and parcel of land and building known - 4 - NC: 2025:KHC:7852 WP No. 18833 of 2021 as 'Grace Towers' bearing No.70, Millers Road, Bangalore-560 052. The petitioners and the second respondent entered into a Lease Deed on July 03, 2009, whereby the second respondent agreed to occupy the leased out premises for the entire duration of the Lease Deed, upon paying rental consideration. Subsequently, the parties entered into another Lease Deed, after the expiry of the previous one on October 04, 2017. Instead of abiding by its obligations under the said Deed, the second respondent unilaterally handed over the leased out premises, thereby also failing to pay rentals etc. Aggrieved by the same, the petitioners initiated arbitration proceedings against the second respondent, which came to be numbered as A.C.No.46/2020. The Arbitral Tribunal rendered its Award in the matter on December 09, 2020. Post the same, the first respondent upon a Memorandum of Costs dated December 17, 2020 filed by the second respondent after the rendering of the Award, vide the order dated:21.12.2020, imposed arbitrary and unreasonable costs upon the petitioners, amounting to Rs.11,47,500/-. Hence, having left with no other alternate and efficacious remedy, the petitioners have filed the captioned Writ Petition. - 5 - NC: 2025:KHC:7852 WP No. 18833 of 2021 4. Counsel for the respective parties urged several contentions. Heard the arguments and perused the Writ papers with care. 5. The Memorandum of Costs Assessed in A.C.No.46/2020 is furnished along with the Writ Petition and the same is marked as Annexure-A. A perusal of the same reflects that a sum of Rs.11,47,500/- has been imposed as costs upon the petitioners. This is arbitrary and untenable. Moreover, the petitioners were not given opportunity to ventilate their grievances about the Memorandum of Costs filed by the second respondent. Hence, the imposition of costs is against the settled principles of natural justice. Needless to say, the arbitration is aimed at cost-effective dispute resolution. Therefore, this Court deems it proper to quash the imposition of the costs. 6. The Writ of Certiorari is ordered. The order dated 21.12.2020 rendered by respondent No.1 vide Annexure-A is quashed. The first respondent is directed to reassesses the Regime for Costs as per Section 31-A of the Arbitration and Conciliation Act, 1996. A gentle reminder is made to the Arbitral Tribunal to follow and adhere to Section 31-A of the - 6 - NC: 2025:KHC:7852 WP No. 18833 of 2021 Act, while passing the award in respect of costs. This order is passed to the present facts and circumstances of the case. 7. Resultantly, the Writ Petition is disposed of. Sd/- (JYOTI MULIMANI) JUDGE MRP List No.: 2 Sl No.: 29