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2025 DAILYLAW 90292 (KAR)

M/S NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED v. STATE OF KARNATAKA

WA/1666/2025 · 2025-12-09

C M Poonacha

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:51865-DB WA No. 1666 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF DECEMBER, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 1666 OF 2025 (GM-TEN) BETWEEN: 1. M/S NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED REGISTERED UNDER THE COMPANIES ACT, 1956 NO. 1316, 2ND CROSS K.H.B COLONY MAGADI ROAD BENGALURU 560 079 REPRESENTED BY ITS ZONAL MANAGER AMIT SHARMA …APPELLANT (BY SRI KANISHK RAVINDRAN., ADVOCATE) AND: 1. STATE OF KARNATAKA HOUSING DEPARTMENT 4TH FLOOR, VIKASA SOUDHA DR. AMBEDKAR VEEDHI BENGALURU - 560 001 REPRESENTED BY ITS PRINCIPAL SECRETARY 2. RAJIV GANDHI HOUSING CORPORATION LIMITED, (RGHCL) CAUVERY BHAVAN, 9TH FLOOR, C AND F BLOCK Digitally signed by SRIDEVI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:51865-DB WA No. 1666 of 2025 K.G. ROAD BENGALURU 560 009 REPRESENTED BY ITS MANAGING DIRECTOR 3. BELGAVI CITY MUNICIPAL CORPORATION CTS NO 4821/27A RSNO 1005 SUBHASH NAGAR BELAGAVI KARNATAKA-590016 REPRESENTED BY ITS COMMISSIONER 4. M/S IMPRINTS NO. 55, FIRST FLOOR 8TH CROSS BETWEEN 5TH AND 6TH MAIN MALLESHWARAM BENGALURU - 560 003 REPRESENTED BY ITS MANAGER 5. M/S CHETANA CONSORTIUM CHETANA HOUSE NO. 3/1, 10TH CROSS VASANTH NAGAR, BENGALURU - 560 001 REPRESENTED BY ITS MANAGER …RESPONDENTS (BY SMT. NAMITHA MAHESH B.G., AGA FOR R-1 & SMT. SUMANA BALIGA M., ADVOCATE FOR C/R-2) THIS WRIT APPEAL FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO ALLOW THE APPEAL BY SETTING ASIDE THE ORDER DATED 05.08.2025 OF THE LEARNED SINGLE JUDGE IN WP No.11251/2025 AND CONSEQUENTLY ALLOW THE WP FILED BY THE RESPONDENT IN THE INTEREST OF JUSTICE AND EQUITY. - 3 - HC-KAR NC: 2025:KHC:51865-DB WA No. 1666 of 2025 THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The appellant has filed the present appeal impugning an order dated 05.08.2025 passed by the learned Single Judge of this Court in W.P.No.11251/2025 (GM-TEN), whereby the said petition was dismissed. 2. The appellant is a public sector enterprise and had filed the said petition, inter alia, impugning a communication dated 28.03.2025, whereby the respondent No.2 had terminated the contract awarded to the appellant for "Construction of 1484 Du's (G+ 3 Floors) adopting Monolithic Shear Wall Technology only (cast-in-situ, Single Pour Technology with single stage Aluminium Shuttering only) and Providing Infrastructures works" at Alarwad Sy.No.241/B, Anagola Sy.No.658/1-A, 135/2 Pai P2 in Belagavi City under the "Pradhana Mantri Awas Yojana (Urban) Housing for - 4 - HC-KAR NC: 2025:KHC:51865-DB WA No. 1666 of 2025 all (PMAY (U) - HFA). The bank guarantee furnished by the appellant was also terminated. 3. Undisputedly, there were delays in the execution of the works. The appellant claims that the delays were attributable to the respondent-authorities as an encumbrance free site, where the work was to be executed was not provided to the appellant. It is stated that the appellant had asked respondent No.3 to conduct a Hudbust for the construction site and the same was not done. Additionally, the appellant has also raised certain other issues to the effect that the respondent had not performed the other obligations as required under the contract. 4. The learned Single Judge had found that the issues raised by the appellant involved disputed question of fact and therefore concluded that it would not be apposite to entertain the writ petition. Accordingly, the appellants were relegated to the alternate remedy. 5. A plain reading of the contract indicates that the arbitration agreement included an arbitration clause, whereby the parties had agreed that any dispute or difference or claim arising out of, or in connection with, or relating to the present contract or the breach, - 5 - HC-KAR NC: 2025:KHC:51865-DB WA No. 1666 of 2025 termination or invalidity thereof, shall be referred and settled before the Arbitration and Conciliation Centre (Domestic & International), Khanija Bhavan, Bengaluru, in terms of the Arbitration & Conciliation Centre Rules, 2012, by one or more Arbitrators appointed by them. 6. Having agreed that the disputes would be settled in arbitration, we find no infirmity with the decision of the learned Single Judge in declining to entertain the writ petition, which is apparently raising disputes relating to or arising from the contract between the parties. 7. In view of the above, the present appeal is dismissed. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C.M. POONACHA) JUDGE SD List No.: 2 Sl No.: 13