- 1 - HC-KAR NC: 2026:KHC:3998-DB MFA No. 7014 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JANUARY, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA MISCELLANEOUS FIRST APPEAL NO. 7014 OF 2025 (AA) BETWEEN: 1. SRI.M.GANGADHAR RAO AGED ABOUT 58 YEARS S/O. M. MURALIDHAR RAO, FLAT NO.102, VISHWAS RESIDENCY NEAR AJJARKAD, UDUPI - 576101. 2. SMT. POORNIMA A. NAYAK. AGED ABOUT 61 YEARS W/O. SRI ARAVIND R. NAYAK, GOPALAPURA, 1ST MAIN, KALLIANAPUR, P. O. SANTHEKATTE, UDUPI 576105. REP. BY HER GPA HOLDER AND ALSO HER HUSBAND MR. ARAVIND R. NAYAK, HINDU, AGED ABOUT 62 YEARS, S/O. SRI RAMARAYA NAYAK, GOPALAPURA, 1ST MAIN, KALLIANAPUR, P. O. SANTHEKATTE, UDUPI 576105. …APPELLANTS (BY SRI. MAHESH R UPPIN, ADVOCATE) Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:3998-DB MFA No. 7014 of 2025 AND: 1. M/S.VISHWAS PROPERTIES DEVELOPERS (A FIRM REGISTERED UNDER INDIAN PARTNERSHIP ACT) VIJAYA BUILDING, OPP LOMBARD MEMORIAL HOSPITAL, MISSION COMPOUND, UDUPI - 576101. BY ITS MANAGING PARTNER. 2. SMT. JAYAPRADA S. SHETTY, AGED ABOUT 47 YEARS, W/O SRIKANTH SHETTY, K. VITTALA SHETTY COMPOUND, GOPALAPURA, I CROSS, SANTHEKATTE, KALLIANAPURA, UDUPI 576105. 3. SRI G. SANJEEVA SHETTY, AGED ABOUT 70 YEARS, S/O SRI NARAYANA SHETTY, DURGAPRASAD, SANTHEKATTE, KALLIANAPURA, UDUPI - 576105 4. SRI. STEPHEN VIJAYA KUMAR KARKADA, AGED ABOUT 57 YEARS, S/O SRI SHADRAK KARKADA, VALENTINE, M. M. TEMPLE ROAD, 76 BADABABETTU, BAILOOR, UDUPI-576101. 5. SMT. VASANTHI PUSHPALATHA AMANNA, AGED ABOUT 63 YEARS, W/O LATE AAARON PRAVEEN AMANNA, 6. SRI. ASHLEY NIHAL AMANNA AGED ABOUT 39 YRS, S/O LATE AAARON PRAVEEN AMANNA 7. SMT. AARON NEETHA AMANNA, - 3 - HC-KAR NC: 2026:KHC:3998-DB MFA No. 7014 of 2025 AGED ABOUT 33 YEARS, D/O LATE AAARON PRAVEEN AMANNA No.5 TO 7 ARE THE L.R.S OF DECEASED AARON PRAVEEN AMMANNA (PARTNER OF RESP. 1 FIRM) AND RESIDENTS AT 'ROSEFELIX', 5-90A, 8TH CROSS, NEAR M. M. SCHOOL, 76, BADABABETTU, BAILOOR, UDUPI-576101. 8. SRI. MOOSA KUNHI NAYARMOOLE, S/O. NOT KNOWN TO THE APPELLANTS, AGE MAJOR, HON'BLE SOLE ARBITRATOR, RETIRED DISTRICT AND SESSIONS JUDGE, NAYARMOOLE POST, VITTAL, BANTWAL TALUK, DAKSHINA KANNADA DISTRICT-574243. …RESPONDENTS (BY MS. SUSHMITHA SURESH, ADVOCATE FOR C/R1 TO R4 R5 TO R7 ARE SERVED AND UNREPRESENTED NOTICE TO R8 IS DISPENSED WITH V/O DATED 07.11.2025) THIS MFA IS FILED U/S.37(1)(c) OF THE ARBITRATION AND CONCILIATION ACT, 1996, AGAINST THE JUDGMENT DT. 01.08.2025 PASSED IN A.P.NO.374/2023 ON THE FILE OF THE I ADDITIONAL DISTRICT AND SESSIONS JUDGE, DAKSHINA KANNNADA, MANGALURU, DISMISSING AS BARRED BY LIMITATION ACT FILED U/S.34 (3) OF THE ARBITRATION AND CONCILIATION ACT READ WITH SECTION 5 OF THE LIMITATION ACT. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA - 4 - HC-KAR NC: 2026:KHC:3998-DB MFA No. 7014 of 2025 ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The appellants have filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 [A&C Act] impugning an order dated 01.08.2025 [impugned order] passed in A.P.No.374/2023. The said order was a common order passed in A.P.Nos.384/2023 and 374/2023. The present appeal is confined to the impugned order insofar as it relates to A.P.No.374/2023. 2. The appellants had filed the said petition under Section 34 of the A&C Act on 05.10.2023 impugning an arbitral award dated 11.07.2023 [impugned award] before the learned District Court, Udupi. The said petition/application to set aside the impugned award was returned by the learned District Judge, Udupi on 13.10.2023 on the ground that the place of Arbitration fell within the jurisdiction of the District Court at Mangaluru. The appellants had thereafter filed the application in question (A.P.No.374/2023) before the learned District Judge at Mangaluru. The same was dismissed in terms of the impugned order on the ground that it was barred by limitation. - 5 - HC-KAR NC: 2026:KHC:3998-DB MFA No. 7014 of 2025 3. Under Section 34(3) of the A&C Act, the time available for filing an application to set aside an award is three months from the date of receipt of the award. However, the Court can condone the delay of not exceeding thirty days in terms of the proviso to Section 34(3) of the A&C Act. 4. In the present case, it is the appellants contention that there was no delay since the period during which they were pursuing the application before the learned District Judge at Udupi was required to be excluded under Section 14 of the Limitation Act, 1963. 5. Apparently, the learned District Court had not accepted the same as the learned Court found that the explanation provided by the appellants for proceeding before the Court at Udupi did not appear to be bona fide. The Court observed that the appellants had knowledge that the Courts at Mangaluru had jurisdiction, however, had proceeded to file the application to set aside the impugned award at Udupi to harass the respondents. 6. It is the appellants case that they had filed the application to set aside the impugned award at Udupi as both the appellants as well as the respondents were residing within the said jurisdiction. - 6 - HC-KAR NC: 2026:KHC:3998-DB MFA No. 7014 of 2025 7. Considering the aforesaid explanation, we are unable to accept that the appellants have not established a sufficient cause for a delay of fourteen days. 8. The appeal is allowed and the impugned order insofar as it relates to A.P.No.374/2023 is set aside. The appellants application for setting aside the impugned award is restored before the learned District Court, Mangaluru. The parties shall appear before the said Court on 10.02.2026 for further proceedings. 9. Pending IAs., if any, stand disposed of. SD/- (VIBHU BAKHRU) CHIEF JUSTICE SD/- (C.M. POONACHA) JUDGE ND List No.: 1 Sl No.: 8