SRI. SHAMSUNDAR G KOLHAR vs THE COMMISSIONER
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC-D:15696
WP No. 104221 of 2026
C/W WP No. 106069 of 2026
CNR: KAHC020088792026
IN THE HIGH COURT OF KARNATAKA AT DHARWAD
ST
DATED THIS THE 21 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE M.G.S. KAMAL
WRIT PETITION NO. 104221 OF 2026 (GM-KIADB)
C/W
WRIT PETITION NO. 106069 OF 2026 (LB-RES)
IN WP NO. 104221/2026
BETWEEN:
1. M/S. SRV CONFIL SYSTEMS
A PARTNERSHIP FIRM
HAVING ITS REGISTERED OFFICE AT PLOT NO.10,
KIADB INDUSTRIAL AREA, RAYAPUR,
TQ. AND DIST. DHARWAD 580009.
REPRESENTED BY ITS PARTNERS.
2. SRI. RAMACHANDRA S/O CHANNAPPA KARMARI,
AGE 62 YEARS,
OCC. BUSINESS (PARTNER IN PETITIONER NO.1),
R/O G-16, DOLLARS COLONY, GOKUL ROAD,
TQ. HUBBALLI, DIST. DHARWAD 580030.
3. SMT. GEETA W/O RAMACHANDRA KARMARI,
AGE YEARS,
OCC. BUSINESS (PARTNER IN PETITIONER NO.1),
R/O G-16, DOLLARS COLONY, GOKUL ROAD,
TQ. HUBBALLI, DIST. DAHRWAD 580030.
K M
SOMASHEKAR
Digitally signed by K M
SOMASHEKAR
Location: HIGH COURT
OF KARNATAKA
DHARWAD BENCH
…PETITIONERS
(BY SRI. K.L. PATIL AND
SRI. SOURABH SONDUR, ADVOCATES)
AND:
1. THE KARNATAKA INDUSTRIAL
AREAS DEVELOPMENT BOARD,
ZONAL OFFICE, LAKAMANAHALLI INDUSTRIAL AREA,
P-B ROAD, DHARWAD 580004.
REPRESENTED BY ITS CHIEF ENGINEER,
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2. THE EXECUTIVE ENGINEER,
THE KARNATAKA INDUSTRIAL
AREAS DEVELOPMENT BOARD,
ZONAL OFFICE, LAKAMANAHALLI INDUSTRIAL AREA,
P-B ROAD, DHARWAD 580004.
3. THE DEVELOPMENT OFFICER CUM EXECUTIVE ENGINEER,
THE KARNATAAK INDUSTRIAL
AREAS DEVELOPMENT BOARD,
ZONAL OFFICE, LAKAMANALLI INDUSTRIAL AREA,
P-B ROAD, DHARWAD 580004.
4. SRI. SHYMANAND G. KOLHAR,
AGE MAJOR, OCC. BUSINESS,
R/O I-30 DOLLARS COLONY, TQ. HUBBALLI,
DIST. DHARWAD 580030.
5. SMT. REENA S KOLHAR,
AGE MAJOR, OCC. BUSINESS,
R/O I-30 DOLLARS COLONY, TQ. HUBBALLI,
DIST. DHARWAD 580030.
…RESPONDENTS
(BY SRI. SHASHANK S. HEGDE, ADVOCATE FOR R1-R3;
SRI. M.B. HIREMATH, ADVOCATE FOR
SRI. ROHIT L. SHEELAVANT, ADVOCATE FOR R4 AND R5)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT IN
THE NATURE OF CERTIORARI QUASHING THE IMPUGNED
COMMUNICATION BEARING NO. KA. KAI.
PRA.A.MAM/DHARWAD/AA/174/2026-27 DATED 04/05/2026 ISSUED
BY RESPONDENT NO.3 VIDE ANNEXURE-R, IN THE INTEREST OF
JUSTICE AND EQUITY AND ETC.
IN WP NO. 106069/2026
BETWEEN:
1. SRI. SHAMSUNDAR G. KOLHAR,
AGE. MAJOR, OCC. BUSINESS,
R/O. I-30, DOLLARS COLONY,
TQ. HUBBALLI, DIST. DHARWAD 580001.
2. SMT. REENA S KOLHAR,
AGE. MAJOR, OCC. BUSINESS,
R/O. I-30, DOLLARS COLONY,
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TQ. HUBBALLI, DIST. DHARWAD 580001.
...PETITIONERS
(BY SRI. M.B. HIREMATH, ADVOCATE FOR
SRI. ROHIT L. SHEELVANT, ADVOCATE)
AND:
1. THE COMMISSIONER,
HUBBALLI-DHARWAD MUNICIPAL CORPORATION,
HUBBALLI 580023.
2. THE ASSISTANT COMMISSIONER,
ZONAL OFFICE NO.4, HDMC,
NAVANAGAR, HUBBALLI 580023.
3. SRI. RAMCHANDRA S/O CHANAPPA KARMARI,
AGE. 62 YEARS, OCC. BUSINESS,
R/O. G-16, DOLLARS COLONY, GOKUL ROAD,
TQ. HUBBALLI, DIST. DHARWAD 30.
4. SMT. GEETA W/O RAMCHANDRA KARMARI,
AGE. 60 YEARS, OCC. BUSINESS,
R/O. G-16, DOLLARS COLONY,
GOKUL ROAD, TQ. HUBBALLI, DIST. DHARWAD 30.
...RESPONDENTS
(BY SRI. G.I. GACHCHINMATH, ADVOCATE FOR R1 AND R2;
SRI. K.L. PATIL, ADVOCATE AND
SRI. SOURABH SONDUR, ADVOCATE FOR R3 AND R4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A
WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER WRIT,
ORDER OR DIRECTION AND QUASH THE ENDORSEMENT
BEARING NO. H.D.M.C/VAKA.NO.04/ /2026-27 DATED
D¹Û vÉjUÉ
29/06/2026 ISSUED BY RESPONDENT NO.2 PRODUCED AT
ANNEXURE-R IN THE INTEREST OF JUSTICE AND EQUITY AND
ETC.
THIS WP COMING ON FOR PRELIMINARY HEARING IN ‘B’
GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL
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ORAL ORDER
1. Writ Petition No.104221/2026 is filed by M/s.SRV CONFIL
Systems, a partnership firm represented by its two
partners, being aggrieved by the communication dated
04.05.2026 produced at Annexure-R, issued by
respondent-KIADB.
2. In terms of the said communication, the earlier
communication dated 28.02.2025 issued by KIADB as per
Annexure-N, addressed to the petitioner and recognising
entitlement of shares of petitioner Nos.2 and 3, in
industrial Plot No.10 situated at Rayapur Industrial Area in
ratio of 51:49, has been withdrawn.
3. Writ Petition No.106069/2026 is filed by Shamsundar G.
Kolhlar and Smt. Reena S. Kolhar, being aggrieved by the
endorsement dated 29.06.2026 as per Annexure-R issued
by the respondent-Municipal Corporation declining to effect
change of mutation entries.
4. Heard counsel for the parties.
5. Background of this litigation is a Memorandum of
Understanding dated 18.10.2024 produced at Annexure-F
and Addendum to the said Memorandum of Understanding
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dated 18.10.2024 produced at Annexure-G to the writ
petition in WP No.104221/2026. Admittedly, the said
Memorandum of Understanding and the Addendum was
entered into between the petitioners in both the matters
representing three partnership firms namely (i) M/s.SRV
CONFIL System, (ii) M/s.SRV Agri, Implements and
(iii) M/s. SRV Automations.
6. The said Memorandum of Understanding and the
subsequent addendum, inter alia , provide for dissolution of
the business relationship between the parties, including
retirement and exit of some of the partners from some of
the partnership firms and, consequent, reconstitution of
the said firms.
7. Pursuant to the said Memorandum of Understanding, the
respective partnership firms came to be reconstituted.
8. The Memorandum of Understanding also pertains to three
industrial plots bearing Nos.10, 34 and 35, all situated at
Rayapur Industrial Area. Plot No.10 has been allotted to
the share of the petitioners in W.P.No.104221/2026, where
plot Nos.34 and 35 have been allotted to the share of the
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petitioners in W.P.No.106069/2026. The dispute
essentially relates to the valuation of these plots, resulting
in financial adjustments between the parties.
9. Based on the said Memorandum of Understanding, the
petitioners in W.P.No.104221/2026 had apparently made a
representation to KIADB seeking execution of a deed of
conveyance in respect of Plot No.10 in their favour.
Pursuant thereto, the communication dated 28.02.2025
came to be issued by KIADB recognising petitioner Nos.2
and 3 as having shares to the extent of 51% and 49%,
respectively.
10. Objection to the same was raised by the petitioners in
W.P.No.106069/2026, which resulted in issuance of the
impugned communication dated 04.05.2026 at Annexure-
R. Thus, the dispute between the parties essentially
emanates from the terms of the Memorandum of
Understanding and the subsequent reconstitution of the
partnership firms.
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11. The said Memorandum of Understanding as well as the
reconstitution deeds contain provision for resolution of any
disputes through arbitration.
12. Clause 11 of the Memorandum of Understanding provides
for resolution of disputes between the parties and reads as
under:
“ 11. DISPUTE RESOLUTION
11.1. Arbitration Cause
-Any disputes arising out of or related to this MOU shall be
referred to arbitration. The place of arbitration shall be Hubil,
and the decision of the arbitrator shall be final and binding on
all parties.
13. Clause 20 of the reconstitution deed as per Annexure-L,
provides for arbitration, which reads as follows:
“That in case of any dispute or difference of opinion
arising between the partners, the same shall be
settled duly by arbitration without recourse to the
Court in law”
“That in case of any dispute or difference of opinion
arising between the partners, the same shall be
settled duly by arbitration without recourse to the
Court in law”
14. Thus, the Memorandum of Understanding as well as the
deed of reconstitution provide for resolution of disputes
between the parties through arbitration and conciliation.
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15. Learned counsel for the parties, referring to the aforesaid
clauses and upon instructions, submit in unison that the
parties are ready and willing to have the dispute resolved
through arbitration. They have also filed a joint memo
suggesting the name of Hon’ble Mr. Justice P.G.M. Patil,
former Judge of this Court, as the Arbitrator. Said memo is
taken on record.
16. Since the petitioners in W.P.No.106069/2026 have raised
objections to KIADB proceeding to execute the necessary
instruments in favour of the petitioners in
W.P.No.104221/2026, it is agreed between the parties that
the petitioners in W.P.No.106069/2026 shall be the
claimants before the learned Arbitrator and the petitioners
in W.P.No.104221/2026 shall be the respondents, with
liberty to raise a counter-claim, if any, in accordance with
law.
17. In furtherance to the above submission, it is also prayed
that till resolution of the dispute through arbitration as
above, the impugned communication dated 04.05.2026
issued by KIADB at Annexure-R shall be kept in abeyance
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with a direction to the KIADB to give effect to same
subject to resolution of the dispute through arbitration as
noted above.
18. Learned counsel for the KIADB submits that the KIADB
would act upon the documents justifying the claims made
by the respective parties, as and when, the dispute now
sought to be resolved through arbitration is determined.
19. The said submission is placed on record.
20. Counsel for the petitioners in W.P.No.104221/2026 further
submits that the petitioners in W.P.No.106069/2026 be
directed not to create any third-party rights in respect of
Plot Nos.34 and 35 until resolution of the dispute.
21. In response, learned counsel appearing for the petitioners
in W.P.No.106069/2026, on instructions, submits that the
petitioners therein would not create any third-party
interest in respect of Plot Nos.34 and 35. However they
shall be given liberty to obtain documents from the KIADB
in their names.
22. The said submission is also placed on record.
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23. In view of the above, the following order is passed:
ORDER
(i) These petitions are disposed of .
(ii) The impugned communication dated 04.05.2026
produced at Annexure-R, issued by respondent-
KIADB withdrawing the earlier communication
dated 28.02.2025 recognising petitioner Nos.2
and 3 in W.P.No.104221/2026 as having shares
in respect of Plot No.10, shall be kept in
abeyance and shall not be given effect to until
resolution of the dispute between the parties
through arbitration as noted above.
(iii) The petitioners in W.P.No.104221/2026 shall not
create any third-party interest or incur any
encumbrance in respect of Plot No.10.
(iv) Similarly, the petitioners in
W.P.No.106069/2026 shall not create any
third-party interest or incur any encumbrance in
respect of Plot Nos.34 and 35.
(v) However, it is made clear that the petitioners in
W.P.No.106069/2026 are at liberty to have their
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names entered in the records of KIADB in
respect of Plot Nos.34 and 35, subject to the
outcome of the arbitration proceedings.
(vi) The KIADB shall act upon the request that may
be made by the respective parties with regard to
their entitlement in respect of Plot Nos.10, 34
and 35 only upon resolution of the dispute
through arbitration as noted above.
(vii) Any amount payable in respect of the aforesaid
plots by the respective parties shall, if demanded
by KIADB, be paid to KIADB in accordance with
the applicable terms and conditions, without
prejudice to the rights and contentions of the
parties in the arbitration proceedings.
(viii) KIADB shall not take any precipitative action
until resolution of arbitration and representation
in this regard is made as noted above.
(ix) Since the parties have mutually nominated
Hon’ble Mr. Justice P.G.M. Patil, former Judge of
this Court, as the Arbitrator, the learned
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Arbitrator shall enter upon the Arbitration and
dispose of the dispute between the parties.
(x) The petitioners in W.P.No.106069/2026 shall be
the claimants and the petitioners in
W.P.No.104221/2026 shall be the respondents,
with liberty to the respondents to raise a
counter-claim, if any, in accordance with law.
(xi) All contentions of the parties, including all rights
to seeks interim reliefs that may be available
and permissible under the law are kept open.
(xii) The registry is directed to forward a copy of this
order to the learned Arbitrator.
Sd/-
(M.G.S. KAMAL)
JUDGE
RHR/-CT:VP
LIST NO.: 1 SL NO.: 89