- 1 - HC-KAR NC: 2025:KHC-D:12745 WP No. 107018 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 19TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 107018 OF 2025 (GM-KEB) BETWEEN: M/S. S. S. ELECTRICALS REPRESENTED BY ITS PROPRIETOR, SHAMSUDDIN M DANGE AGE: 51 YEARS, OCC. CLASS I CONTRACTOR, R/O. DANGE COMPLEX, HALIYAL ROAD, ATHANI, TQ. ATHANI, DIST. BELAGAVI-591304. …PETITIONER (BY SRI. GIRISH A. YADAWAD, ADVOCATE) AND: 1. THE HUBBALLI ELECTRICAL SUPPLY CO.LTD (HESCOM), REPRESENTED BY ITS MANAGING DIRECTOR, CORPORATE OFFICE, NAVANAGAR, P.B.ROAD, HUBBALLI, DIST.DHARWAD-580025. 2. THE SUPERINTENDENT ENGINEER (ELECTRICAL) PROJECT MONITORING CELL, CORPORATION OFFICE, P.B.ROAD, NAVANAGAR, HESCOM-HUBBALLI- DIST.DHARWAD-580025. …RESPONDENTS (NOTICE TO RESPONDENTS IS DISPENSED WITH) THIS WP IS FILED UNDER ARICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) ISSUE A WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDER Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:12745 WP No. 107018 of 2025 DATED 19.06.2025 PASSED BY THE RESPONDENT NO.2 BEARING NO.HU.VI.SA.KAM.NI/A.A.(PMC)EE-P3/2025-26/CYS- 2518 VIDE ANNEXURE-L, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. Notice to the respondents is dispensed with in view of the proposed order to be passed. 2. The petitioner is before this Court seeking for the following reliefs: a. Issue a writ in the nature of certiorari to quash the Impugned order dated 19.06.2025 passed by the respondent no.2 bearing No. Hu.Vi.Sa.Kam.Ni/A.A.(PMC)EE-P3/2025-26/CYS- 2518 vide Annexure-L, in the interest of justice and equity. b. Pass such order or orders which this Hon’be Court deems fit and necessary under the facts and circumstances of the case, in the interest of justice and equity. 3. The grievance of the petitioner is that the respondents, on their own accord, have conducted an - 3 - HC-KAR NC: 2025:KHC-D:12745 WP No. 107018 of 2025 internal enquiry, called upon the petitioner to submit a reply, and have concluded that a sum of ₹25,29,62,719/- is liable to be recovered from the petitioner towards losses alleged to have been caused to the respondents. 4. A perusal of Annexure-L (specifically at page 213) reveals that the said document merely records a preliminary determination of the amounts claimed to be due, and that civil recovery proceedings are contemplated pursuant thereto. It is admitted that out of the agreements entered into between the petitioner and the respondents, five agreements are governed by an arbitration clause, while one agreement is not. Therefore, the respondents would be required to initiate Arbitral proceedings under the Arbitration and Conciliation Act, 1996 in respect of the five agreements containing arbitration clauses; and Civil proceedings before a competent court in respect of the one agreement not governed by an arbitration clause. - 4 - HC-KAR NC: 2025:KHC-D:12745 WP No. 107018 of 2025 5. The internal process undertaken by the respondents, as reflected in Annexure-L, is merely a preliminary internal assessment and does not amount to final adjudication. No recovery proceedings have yet been initiated based on such internal findings. 6. Learned counsel for the petitioner, Shri Girish Yadawad, vehemently contends that even for such internal adjudication, the respondents ought to have invoked the arbitration clause and initiated arbitral proceedings. I am unable to accept this submission. The respondents are entitled to undertake an internal evaluation to ascertain whether any amounts are due. However, recovery can only be sought through legally instituted arbitral or civil proceedings, as the case may be. 7. A mere internal enquiry or preliminary determination does not entitle the respondents to recover the amounts without following due process of law. - 5 - HC-KAR NC: 2025:KHC-D:12745 WP No. 107018 of 2025 8. In light of the above, the internal assessment by the respondents cannot be a ground for interference under Article 226 of the Constitution of India at this stage. 9. Accordingly, the following: ORDER i. The writ petition is dismissed. ii. It is made clear that the respondents shall not initiate any recovery against the petitioner without instituting appropriate proceedings either under the Arbitration and Conciliation Act, 1996 or by filing a suit before the competent Civil Court, depending on the terms of the respective agreements. Sd/- (SURAJ GOVINDARAJ) JUDGE VB/CT:PA/List No.: 1 Sl No.: 44