- 1 - HC-KAR NC: 2024:KHC-D:17875 CMP No. 100025 of 2024 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 29TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA CIVIL MISC PETITION NO. 100025 OF 2024 BETWEEN: M/S. RE SUSTAINABILITY LIMITED, LEVEL 11B, AUROBINDO GALAXY CITY HYDERABAD KNOWLEDGE CITY HYDERABAD, TALANGANA - 500 0881. …PETITIONER (BY SRI. MATRUGUPTA MISHRA, SENIOR COUNSEL A/W SRI. A.B.PATIL, ADVOCATES) AND: BELGAUM CITY CORPORATION, CTS NO 4821/27A RSNO 1005, SUBHASH NAGAR, BELAGAVI KARNATAKA - 590 016. …RESPONDENT (BY SRI. VINAY KOUJALAGI, ADVOCATE) THIS CIVIL MISCELLANEOUS PETITION IS FILED UNDER SECTION 11 R/W SECTION 14(1) AND 15 OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO DECLARE THAT THE MANDATE OF THE LD. SOLE ARBITRATOR APPOINTED BY THIS HON’BLE COURT VIDE ORDER DATED 15.11.2023 IN CMP NO.100012 OF 2023 TO ADJUDICATE THE ARBITRATION PROCEEDINGS BEARING ARB P.NO.02/2023 STANDS TERMINATED IN ACCORDANCE WITH SECTION 14 OF THE ACT. APPOINT AN INDEPENDENT SOLE ARBITRATOR AS A SUBSTITUTED ARBITRATOR IN TERMS OF SECTION 15 OF THE ACT TO ADJUDICATE THE DISPUTE BETWEEN THE PARTIES. DIRECT THAT THE ARBITRATION PROCEEDINGS BEFORE THE SUBSTITUTED ARBITRATOR BE RESUMED AND CONTINUED FURTHER WITH THE SAME SET OF PLEADINGS AS ON RECORD AND ETC., THIS PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Date: 2025.10.31 06:27:06 +0000 - 2 - HC-KAR NC: 2024:KHC-D:17875 CMP No. 100025 of 2024 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) Heard the learned counsel appearing to the petitioner and the respondent. 2. The parties to the lis had earlier submitted that the matter has been settled between the parties. The learned counsel now submits that matter has been settled and places the terms of settlement arrived at between the parties. The terms of settlement reads as follows. “This SETTLEMENT AGREEMENT is entered into this 22 day of September 2025, by and between: City Corporation Belagavi, having its office at Belgaum, Karnataka (hereinafter referred to as the "CCB"), represented by its commissioner. And Re Sustainability Limited (formerly Ramky Enviro Engineers Limited), having its office at Level 11B, Aurobindo Galaxy, Hyderabad Knowledge City, Hitech City Road, Hyderabad, Telangana - 500081, India, (hereinafter the "RESL"). CCB & RESL are herein after referred to individually referred to as the "party" and collectively as the "parties". WHEREAS: 1. Belgaum City Corporation and Ramky Enviro Engineers Limited (now it is known as Re Sustainability Limited) entered into a Concession Agreement dated 18.06.2007 for the construction, operation, and maintenance of a Municipal Solid Waste (MSW) - 3 - HC-KAR NC: 2024:KHC-D:17875 CMP No. 100025 of 2024 Inertisation and landfill facility at Belgaum, Karnataka (the "Contract") for a concession period of 20 years. 2. During the course of the contract, certain disputes arose regarding withheld payments during monsoon period, delay in release of payments and non- deposit of Post Closure Performance Account related amounts into the Escrow Account etc. ("Issues") 3. RESL raised claims amounting to INR 12.38 Corers as of 31.05.2025 under the following heads: i. Withheld Amounts (Principal) - INR 3.50 Cr ii. Non-deposit Into PCPA/Escrow Account - INR 1.39 Cr iii. Interest on Delayed Payments - INR 7.49 Cr 4. Consequently, in accordance with the dispute resolution mechanism under Article 10 of the Contract, RESL invoked arbitration against CCB and as result Arbitration Case bearing No. 14/2025 ("Arbitration") is currently being taking place before the Bangalore Arbitration Centre. 5. While Arbitration proceedings are underway, both the parties had agreed to settle the Issues through Amicable Settlement. 6. Accordingly, a settlement meeting was chaired by the Hon'ble Commissioner of CCB on 04.06.2025 in Belgaum and attended by senior representatives from both the parties, but the issues were remained unsettled. 7. During the Arbitration proceedings dated 04.08.2025, Hon'ble Arbitrator has directed the parties to convene a meeting on 11.08.2025. As per the directions, a meeting was conducted at CCB's office and both the parties had agreed to settle the Issues amicably. 8. The parties now wish to formally record the terms of their mutual understanding through this Settlement Agreement. - 4 - HC-KAR NC: 2024:KHC-D:17875 CMP No. 100025 of 2024 NOW THEREFORE, in consideration of the mutual covenants and promises, the parties agree as follows: 1. NO ADMISSION OF LIABILITY: This Settlement Agreement is entered into solely for the purpose of resolving the Issues between the parties and shall not be construed as an admission of liability by either party. Notwithstanding the foregoing, both parties agree to fully comply with and enforce the terms and conditions set forth in this Agreement. 2. PROMISE TO PAY: A. In full and final settlement of the claims raised by the RESL, CCB shall make the following payments in 2 instalments within 60 (sixty) days of execution of this Agreement: i. Withheld amount INR 3,50,56,951/- (Rupees Three Crores Fifty Lakhs Fifty Six Thousand Nine hundred and Fifty-one only): ii. Post Closure Performance Account amount ("PCPA Account) INR 1,39,20,461/- (Rupees One Crore Thirty-Nine Lakh Twenty Thousand Four Hundred Sixty- One Only). These amounts shall be referred as "Settlement Amount." B. As per the meeting proceedings held on 04.06.2025 and 11.08.2025, and in line with the directions issued thereof, the costs towards construction of the entire compound wall, amounting to INR 130 lakhs, shall be reimbursed by RESL. This amount may be recovered by CCB from the dues payable to RESL under the PCPA account. Both parties further agreed that no additional communication regarding the construction of the compound wall shall be made henceforth.. 3. WAIVER OF INTEREST CLAIMS: In good faith and in consideration of CCB's compliance with Clause 2, RESL agreed to waive its rights to claim the accrued interest of INR 7,49,00,000/- - 5 - HC-KAR NC: 2024:KHC-D:17875 CMP No. 100025 of 2024 (Rupees Seven Crores Forty-Nine Lakhs Only), as is claimed in the arbitration matter bearing по. 14/2025. 4. MUTUAL WITHDRAWAL FROM ARBITRATION: Upon execution of this Settlement Agreement, both parties shall jointly withdraw Arbitration Case No. 14/2025, pending before the Bangalore Arbitration Centre and take further necessary steps as per terms of this Agreement to conclude the matter amicably. 5. MUTUAL RELEASE OF CLAIMS: Subject to performance under this Agreement, both the parties hereby irrevocably release and discharge each other from any and all claims, liabilities, demands, actions, or causes of action, arising out of the claims currently under Arbitration. 6. BINDING EFFECT: This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. 7. NON-ASSIGNMENT: Neither party shall assign or transfer any rights or obligations under this Agreement without prior written consent of the other party. 8. INTEGRATION: This Agreement represents the entire understanding between the parties with respect to the subject matter and supersedes all prior negotiations or understandings, written or oral. 9. SEVERABILITY: If any provision of this Agreement is held invalid, the remainder shall continue in full force and effect. 10. NEGOTIATED AGREEMENT: The parties acknowledge that this Agreement has been negotiated jointly and that each party has had the - 6 - HC-KAR NC: 2024:KHC-D:17875 CMP No. 100025 of 2024 opportunity to review and revise it with independent legal counsel. 11. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed an original. 12. REPRESENTATIONS & Warranties: Each party represents and warrants that the undersigned signatory has the authority to execute this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Settlement Agreement on the date first above written.” 3. In the light of the settlement arrived at between the parties, the petition need not detain before this Court. Recording the said settlement, the petition stands disposed. Sd/- (M.NAGAPRASANNA) JUDGE RSH/CT-ASC List No.: 1 Sl No.: 37