Published on : 29 Sep 2025, 2:19 pm 3 min read

The Karnataka High Court recently set aside an arbitration award of ₹178.98 crore granted against the State of Karnataka in a dispute involving a government educational technology project worth ₹412 crore [ State of Karnataka v. Siddharth Infotech].

The Court ruled that the arbitration proceedings suffered from a fundamental flaw due to the non-joinder of Karnataka State Electronics Development Corporation (KEONICS), a necessary party, rendering the entire award legally unsustainable.

Stating that the same amounted to patent illegality, a Division Bench of Justices Anu Sivaraman and K Manmadha Rao held,

" This omission deprived the proceedings of completeness, led to adjudication without consideration of vital obligations an

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