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2025 DAILYLAW 86825 (KAR)

UNION OF INDIA v. M/S. RSV CONSTRUCTIONS PVT. LTD.

WP/28609/2023 · 2025-11-27

E S Indiresh

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE E.S.INDIRESH WRIT PETITION NO.28609 OF 2023 (GM-RES) BETWEEN: 1. UNION OF INDIA REPRESENTED BY GENERAL MANAGER, RAIL SOUDHA, SOUTH WESTERN RAILWAY, GADAG ROAD, HUBBALLI - 580 020. 2. THE CHIEF ADMINISTRATIVE OFFICER (CONSTRUCTION) SOUTH WESTERN RAILWAY, NO.18, MILLERS ROAD, BENGALURU - 560 046. 3. THE CHIEF ENGINEER /III/(CONSTRUCTION) SOUTH WESTERN RAILWAY, NO.18, MILLERS ROAD, BENGALURU - 560 046. 4. THE DEPUTY CHIEF ENGINEER/CONSTRUCTION SOUTH WESTERN RAILWAY, Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 OFFICE OF DEPUTY CHIEF ENGINEER (CONSTRUCTION), YADAVGIRI, MYSURU - 560 020. …PETITIONERS (BY SMT. ANUPARNA BORDOLOI., ADVOCATE) AND: M/S. RSV CONSTRUCTIONS PVT. LTD. HAVING OFFICE AT: H.NO. 8-2418, 5TH FLOOR, MEENAKSHI HOUSE, BANJARA HILLS, ROAD NO.07, HYDERABAD - 500 034. …RESPONDENT (BY SRI. SAMPATH BAPAT., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) ALLOW THE INTERIM APPLICATION NO.1 FILED BY THE PETITIONER UNDER SECTION 16 OF THE ARBITRATION AND CONCILIATION ACT OF 1996 (ANNEXURE-L); b) CONSEQUENTLY SET ASIDE THE ORDER DATED 20/11/2023 PASSED BY THE ARBITRATION TRIBUNAL IN ARBITRATION CASE NO.G/A-29/2015-LOOSE-37 (E 57920 & GB (ARBT)/22/2022) (ANNEXURE-M) AND ETC THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 CORAM: HON'BLE MR. JUSTICE E.S.INDIRESH ORAL ORDER Heard the learned counsel appearing for the parties. 2. In this writ petition, the petitioners are assailing the order dated 20.11.2023 passed by the Arbitration Tribunal in Arbitration Case No.G/A-29/2015/Loose-37 (E 57920 & GB (ARBT)/22/2022) (Annexure-M). 3. It is submitted by the learned counsel appearing for the petitioners that in terms of the order passed by this Court in CMP.No.286/2021 dated 14.07.2022, learned Arbitrator has been appointed for resolution of the dispute between the parties. In this regard, the learned Arbitrator has taken the petition preferred by the respondent herein. In the meanwhile, the petitioners herein have filed application under Section 16 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'Act') stating that the claims made by the respondent herein are barred under Section 3 of the Limitation Act, 1963. The said application is rejected by learned Arbitrator at Annexure-M to the writ petition. Therefore, it is contended by - 4 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 the learned counsel appearing for the petitioners that since the question of limitation is a mixed question of fact and law and if an issue is framed by the learned Arbitrator, both the parties will adduce evidence on the said issue. Accordingly, sought for interference of this Court. 4. Sri.Sampath Bapat, learned counsel appearing for the respondent sought to justify the impugned order passed by the learned Arbitrator and contended that this Court has no jurisdiction under Article 226 of the Constitution of India to interfere with the interlocutary order passed by the learned Arbitrator and therefore, sought for dismissal of the writ petition. It is also contended by the learned counsel appearing for the respondent that as the petitioners herein have filed an application and invited an order on a particular aspect and therefore, the said order is to be confirmed by this Court and accordingly, sought for dismissal of the petition. 5. In the light of the submission made by the learned counsel appearing for the parties and on careful consideration of the writ papers would indicate that this Court by order dated 14.07.2022 in CMP.No.286/2021 (Annexure-J) appointed the - 5 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 learned Arbitrator under Section 11 of the Act. Pursuant to the same, the learned Arbitrator has begun the arbitral proceedings and in the said proceedings, the petitioners herein have filed an application under Section 16 of the Act read with Section 3 of the Limitation Act stating that the claim made by the respondent herein is barred by limitation. The said application is rejected by impugned order at Annexure-M by the Arbitral Tribunal. 6. Having taken note of the submission made by the learned counsel appearing for the parties and the finding recorded by the Arbitral Tribunal would indicate that the petitioners herein are barred from raising the question pertaining to the limitation before the Arbitral Tribunal, which requires adjudication upon enquiry. It is well established principle in law that the question of limitation is mixed question of fact and an enquiry has to be conducted to answer the particular question. In that view of the matter, I find force in the submission made by the learned counsel appearing for the petitioners that as the petitioners herein have raised the plea of limitation in the reply/written statement/objection filed by the - 6 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 respondent therein before the Arbitral Tribunal, it is the duty of the Arbitral Tribunal to frame an issue relating to the limitation and permit the parties to adduce evidence on the said aspect and thereafter take decision in the matter in accordance with law. If at all, the said aspect of raising the limitation is rejected as per Annexure-M, then it is not open for the parties to adduce evidence wherein the question relating to limitation is question of fact and law and therefore, a patent error has been committed by the Arbitral Tribunal. Therefore, I pass the following- ORDER (i) The writ petition is allowed. (ii) The order dated 20.11.2023 passed by the Arbitration Tribunal in Arbitration Case No.G/A- 29/2015/Loose-37 (E 57920 & GB (ARBT)/22/2022) (Annexure-M) is hereby set aside. (iii) The Arbitral Tribunal is requested to frame issue relating to the limitation as the said aspect is a - 7 - HC-KAR NC: 2025:KHC:49210 WP No. 28609 of 2023 question of fact and law that is to be resolved by way of an enquiry and as such permit the parties to adduce evidence on the said aspect of the matter. With this observation, the writ petition is allowed. SD/- (E.S.INDIRESH) JUDGE MEG List No.: 1 Sl No.: 8