M/S Sbr Infra Buildtech Vs M/S Apya Capital Services Private Limited

M/S SBR INFRA BUILDTECH A PARTNERSHIP FIRM HAVING ITS OFFICE AT SY. NO. 24/5, SBR HORIZON, SEEGEHALLI, BENGALURU-560067 REPRESENTED BY ITS MANAGING PARTNER MR. T. VENUGOPAL

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…PETITIONER

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(BY SRI. SIDDHARTH SUMAN., ADVOCATE)

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AND:

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Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA

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M/S APYA CAPITAL SERVICES PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT FLAT NO. 22, TOWER 6, PEBBLE BAY, RAJ MAHAL VILAS - II, RAMAKRISHNAPPA LAYOUT, NAGASHETTY HALLI, BENGALURU -560094 REPRESENTED BY ITS AUTHORISED SIGNATORY

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…RESPONDENT

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(BY SRI. CHINTAN CHINNAPPA M., ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF CERTORARI OR SUCH OTHER APPROPRIATE WRIT OR ORDERS OR DIRECTIONS, QUASHING/ SETTING ASIDE THE ORDER DATED 02.06.2025 PASSED BY THE HON'BLE ARBITRATOR, IN

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2 - NC: 2026:KHC:25574-DB WP No. 18423 of 2025

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HC-KAR

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ARBITRATION PROCEEDINGS PERTAINING TO M/s APYA CAPTIAL SERVICES PVT LTD AND M/S SBR INFRA BUILDTECH (ANNEXURE-A) AS ARBITRARY, ILLEGAL AND UNJUST AND CONSEQUENTLY REJECT THE REVIEW APPLICATION FILED UNDER SECTION 114 R/W SECTION 151 OF CPC AND MEMO FOR MODIFICATION BY THE RESPONDENT, ETC.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE RAJESH RAI K

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ORAL ORDER

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(PER: HON'BLE MR. JUSTICE D K SINGH)

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The present writ petition has been filed impugning the order dated 03.01.2025 passed by the Arbitral Tribunal, Justice Ajit J Gunjal, Former Judge of this Court, between M/s. Apya Capital Services Private Limited and M/s. SBR Infra Buildtech, the petitioner herein.

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Earlier, the Arbitral Tribunal, on an application filed by the claimant under Section 17 of the Arbitration and Conciliation Act, 1996, passed an interim order directing the petitioner herein to furnish security to the extent of Rs.25 Crores, in addition to Rs.10 Crores as directed by this Court. The said security shall be free from all or any encumbrance,

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3 - NC: 2026:KHC:25574-DB WP No. 18423 of 2025

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HC-KAR

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and shall be free holding. The said security shall be furnished to

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the satisfaction of the Commercial Court in the proceedings where the security of Rs.10 Crores, has already been furnished, as directed by this Court. As there was no time limit fixed by the Arbitral Tribunal for furnishing the further security of Rs.25 Crores, the claimant/respondent filed an application seeking review of the interim order dated 03.01.2025. However, when they realized that a review would not be maintainable, the claimant/respondent filed a memo before the Arbitral Tribunal seeking modification of the application and requesting the Tribunal to fix a time for furnishing the security.

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The Tribunal has treated the application as modification application and vide order dated 03.01.2025 directed the petitioner to furnish security for an additional sum of Rs.1,22,90,365/- as Revenue Share in respect of the apartments already booked in addition to Rs.30 Crores as per the order. However, the figure of Rs.30 Crores is an obvious error, it should have been Rs.25 Crores. Instead of Rs.25 Crores the Arbitral Tribunal has directed the petitioner to furnish security of Rs.30 crores. Therefore, we modify

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