- 1 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 9TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE G BASAVARAJA REVIEW PETITION NO. 100101 OF 2025 CONNECTED WITH REVIEW PETITION NO. 100103 OF 2025 IN REVIEW PETITION NO. 100101 OF 2025 BETWEEN: M/S PRADEEP CONSTRUCTION COMPANY REPRESENTED BY ITS PARTNER SRI JAGANNATH SHETTY ENGINEERING'S AND CONSTRUCTORS ADMIN OFFICE: NO.4, VRINDAVAN APARTMENT OPP BVB COLLEGE VIDYANAGAR HUBBALLI - 580 021 …PETITIONER (BY SRI. CHANNABASAVARAJ S. SHETTAR, SMT. KAVYA C. SHETTAR AND SRI. P. HARISCHANDRA REDDY, ADVOCATES) AND: 1. URBAN DEVELOPMENT DEPARTMENT (UDD) GOVERNMENT OF KARNATAKA (GOK) REPRESENTED BY ITS THE MANAGING DIRECTOR BELAGAVI SMART CITY LTD 1ST FLOOR BUDA OFFICE ASHOK NAGAR BELAGAVI - 590 006 Digitally signed by LAKSHMINARAYAN N Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 2. THE SECRETARY URBAN DEVELOPMENT DEPARTMENT GOVERNMENT OF KARNATAKA VIKAS SOUDHA BENGALURU - 01 3. THE EXECUTIVE ENGINEER BELAGAVI SMART CITY LTD. 1ST FLOOR BUDA OFFICE ASHOK NAGAR BELAGAVI - 590 006 …RESPONDENTS (BY SRI. ASHOK HALAGI, ADVOCATE FOR R1 & R3 SRI. PRAVEENA Y. DEVARADDIYAVARA, HCGP FOR R2) THIS REVIEW PETITION IS FILED UNDER SECTION 114 R/W ORDER 47 RULE (1) OF CPC, PRAYING TO 1. CALL FOR RECORDS PERTAINING TO ORDER DATED 07.08.2025 IN CMP NO.100016/2024 2. REVIEW THE ORDER DATED 07.08.2025 IN CMP NO 100016/2024 PASSED BY THIS HONBLE COURT AND CONSEQUENTLY ALLOW THE CMP NO.100016/2024 AS PRAYED FOR BY THE PETITIONER, IN THE INTEREST OF JUSTICE AND EQUITY. IN REVIEW PETITION NO. 100103 OF 2025 BETWEEN: M/S PRADEEP CONSTRUCTION COMPANY REPRESENTED BY ITS PARTNER SRI JAGANNATH SHETTY ENGINEERING'S AND CONSTRUCTORS ADMIN OFFICE: NO.4, VRINDAVAN APARTMENT - 3 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 OPP BVB COLLEGE VIDYANAGAR HUBBALLI - 580 021 …PETITIONER (BY SRI. CHANNABASAVARAJ S. SHETTAR, SMT. KAVYA C. SHETTAR, AND SRI. P. HARISCHANDRA REDDY, ADVOCATES) AND: 1. URBAN DEVELOPMENT DEPARTMENT (UDD) GOVERNMENT OF KARNATAKA (GOK) REPRESENTED BY ITS THE MANAGING DIRECTOR BELAGAVI SMART CITY LTD 1ST FLOOR BUDA OFFICE ASHOK NAGAR BELAGAVI - 590 006 2. THE SECRETARY URBAN DEVELOPMENT DEPARTMENT GOVERNMENT OF KARNATAKA VIKAS SOUDHA BENGALURU -01 3. THE EXECUTIVE ENGINEER BELAGAVI SMART CITY LTD 1ST FLOOR BUDA OFFICE ASHOK NAGAR BELAGAVI - 590 006 …RESPONDENTS (BY SRI. ASHOK HALAGI, ADVOCATE FOR R1 AND R3 SRI. PRAVEENA Y. DEVARADDIYAVARA, HCGP FOR R2) - 4 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 THIS REVIEW PETITION IS FILED UNDER ORDER 47 RULE (1) OF CPC, PRAYING TO A. CALL FOR RECORDS PERTAINING TO ORDER DATED 07.08.2025 IN CMP NO.100017/2024 B. REVIEW THE ORDER DATED 07.08.2025 IN CMP NO 100017/2024 PASSED BY THIS HONBLE COURT AND CONSEQUENTLY ALLOW THE CMP NO 100017/2024 AS PRAYED FOR BY THE PETITIONER, IN THE INTEREST OF JUSTICE AND EQUITY. THESE PETITIONS, COMING ON FOR FURTHER ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: CORAM: THE HON'BLE MR. JUSTICE G BASAVARAJA ORAL ORDER 1. The petitioner M/s Pradeep Construction Company has filed this review petition under Order XLVII Rule 1 r/w Section 114 of CPC seeking to review the order dated 07.08.2025 in CMP No.100016/2024 and consequently allow this CMP No.100016/2024. 2. Heard. 3. Learned HCGP Praveena Y. Devaraddiyavara, appearing for respondent No.2 submits that there are no grounds to allow this review petition. - 5 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 4. It is submitted by the Counsel for the petitioner that the impugned order has proceeded to appoint respondent No.2 herein as sole Arbitrator for settlement of disputes. It is the trite law that a party to the proceedings cannot sit as a Judge to adjudicate the lis wherein his interest is involved. This aspect of law and fact is not properly appreciated while passing the impugned order. 5. Respondent Nos.1 to 3 are herein seeking shelter under the respondent, Government of Karnataka. Respondent No.2 is not an independent body. In the event if respondent No.2 is appointed as Arbitrator, there are every chances that there cannot be a fair and impartial adjudication of the lis as any order to be passed in favour of this petitioner would be enforceable against all the respondents. Under such circumstances, appointment of respondent No.2 as Arbitrator would defeat the purpose with which an Arbitrator is sought to be appointed. The said appointment violates Section 12(5) of the Arbitration and Conciliation Act, 1996. To substantiate the same, reliance is placed upon the decision of Hon’ble Apex Court in the case of Central Organization for Railway - 6 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 Electrification vs. M/s ECI SPIC SMO MCML (JV) (2024 INSC 857). 6. In the case on hand, the petitioner has filed this review petition against respondent Nos.1 to 3. This Court has appointed respondent No.2 – The Secretary, Urban Development Department (UDD), Government of Karnataka as Arbitrator to resolve the dispute between the parties, in terms of the agreements between the parties dated 30.07.2019 and 12.07.2019, in accordance with Act and Rules. 7. It is observed that, in the light of the submissions of learned counsel for both the parties, this Court has passed the impugned order, which is questioned in this review petition. 8. However, now the petitioner has expressed his apprehension that if the Secretary, Urban Development Department (UDD) is appointed as Arbitrator, he may not act as impartial Arbitrator. Considering the grievance of this petitioner and also keeping in mind the provisions of Section 12(5) of the Arbitration and Conciliation Act, 1996 and also keeping in mind the decision of Hon’ble Apex Court cited by - 7 - HC-KAR NC: 2026:KHC-D:2112 RP No. 100101 of 2025 C/W RP No.100103 of 2025 the learned counsel for petitioner, it is just and proper to review the order as to the appointment of the Secretary, Urban Development Department (UDD), Government of Karnataka. Accordingly, I proceed to pass the following, ORDER The review petition filed under Order XLVII Rule 1 r/w Section 114 of CPC is allowed. Sri.Virupakshaiah. H.M., Former District Judge, is appointed as Arbitrator to resolve the dispute between the parties in terms of the agreements dated 30.07.2019 and 12.07.2019 in accordance with relevant Act and Rules. Send the copy of this order with copy of agreements to the Arbitration Center, Benagluru for taking necessary action. Sd/- (G BASAVARAJA) JUDGE LL List No.: 19 Sl No.: 1