Justice SC Sharma Recuses From International Arbitration & Mediation Centre's Plea Challenging Cancellation Of Free Land Allotment

Justice Satish Chandra Sharma of the Supreme Court recently recused from hearing a plea filed by the International Arbitration and Mediation Centre (IAMC) against a Telangana High Court judgment that quashed the free allotment of government land in Hyderabad to the IAMC.

A bench of Justice Dipankar Datta and Justice Satish Chandra Sharma directed that the special leave petition may be listed before a Bench of which Justice Sharma is not a member.

"The special leave petitions may be listed before a Bench of which one of us (Satish Chandra Sharma, J.) is not a member", the Court ordered.

The Telangana High Court had in June 2025 struck down the State Government's decision to allot land of significant market value in Hyderabad, free of cost, to IAMC. The IAMC was set up in 2021 when Justice NV Ramana was the Chief Justice of India.

The High Court had set aside G.O. Ms. No. 126 dated December 26, 2021, by which the land in Raidurg village, Ranga Reddy District was allotted to IAMC. The High Court held that matters involving allotment and distribution of State largesse cannot be done free of cost and that governments must ensure adequate compensation when parting with natural resources held in public trust, unless the allotment is for a greater public purpose and in favour of a non-profit institution.

While setting aside the land allotment, the High Court upheld the grant of Rs. 3 crores as financial assistance to IAMC and the State's decision directing its departments and public sector undertakings to refer disputes above Rs. 3 crores to IAMC for arbitration, holding both to be policy decisions.

Following the recusal, the Supreme Court directed that the IAMC's special leave petition be placed before another bench.

Case no. – Special Leave Petition (Civil) Diary No. 67000/2025

Case Title – The International Arbitration and Mediation Centre v. Koti Raghunatha Rao & Ors.