Citation : 2022 Latest Caselaw 10565 Kant
Judgement Date : 8 July, 2022
COMAP No.36/2022
C/W COMAP 35/2022
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 8TH DAY OF JULY, 2022
PRESENT
THE HON'BLE MR. JUSTICE P.S. DINESH KUMAR
AND
THE HON'BLE MR. JUSTICE C.M. POONACHA
COMAP No.36 OF 2022
C/W
COMAP No.35 OF 2022
IN COMAP NO.36 OF 2022
BETWEEN :
1. MR. ROHIT RAJKUMAR KUKREJA
S/o LATE Mr. RAJKUMAR L KUKREJA
AGED ABOUT 33 YEARS
PRESENTLY RESIDING AT
4917, HIGH POINT 4
No.45, PALACE ROAD
BENGALURU - 560 001.
2. MR. AKSHAY RAJKUMAR KUKREJA
S/o LATE Mr. RAJKUMAR L KUKREJA
AGED ABOUT 26 YEARS
PRESENTLY RESIDING AT 4917
HIGH POINT 4, No.45
PALACE ROAD
BENGALURU - 560 001.
3. MR. ANUJ SINGHAL
S/O MR VINOD K. SINGHAL
AGED ABOUT 38 YEARS
RESIDING AT NO.306
2ND CROSS, 7TH MAIN
BTM LAYOUT
BENGALURU-560 076.
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4. MR. HARISH L
S/O MR LAKSHMICHAND GERA
AGED ABOUT 43 YEARS
RESIDING AT ADITYA ELECTRONICS
NO.4212, HIGH POINT
NO.45, PALACE ROAD
BENGALURU-560 001.
5. MR. GOPAL DAS THAKURDUS
S/O LATE MR THAKURDS
AGED ABOUT 70 YEARS
RESIDING AT NO.2/5
NANJAPPA ROAD
SHANTINAGAR
BENGALURU-560 027.
6. M/S. GORDON INVESTMENT
REPRESENTED BY ONE OF ITS TRUSTEE
MRS. SHAA SAWHNEY
W/O MR ARJUN SAWHNEY
AGED ABOUT 47 YEARS
HAVING ITS OFFICE AT
'LAVINA MANSION'
NO.45/13, PROMENADE ROAD
BENGALURU-560 042.
7. MR. SUNDARI HEMACHANDRAN
S/O LATE MR K SESHADRI
AGED ABOUT 66 YEARS
RESIDING AT NO.705
OAK, SJR PARK VISTA
HARALUR ROAD
OFF SARJAPUR ROAD
BENGALURU-560 102.
8. MR. H GIRIDHARLAL
AGED ABOUT 67 YEARS
S/O LATE T HIRANAND
RESIDING AT NO.20
SHANTAPPA LANE
SJP ROAD CROSS
BENGALURU-560 002.
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9. MRS. BINDU GIRIDHARLAL
AGED ABOUT 66 EYARS
W/O MR H GIRIDHARLAL
RESIDING AT NO.20
SHANTAPPA LANE
SJP ROAD CROSS
BENGALURU-560 002.
10 . MR. RAJEEV SHANKARLAL
AGED ABOUT 46 YEARS
S/O MR SHANKARLAL H
RESIDING AT NO.20
SHANTAPPA LANE
SJP ROAD CROSS
BENGALURU-560 002.
11 . MR. AMIT SHANKARLAL
AGED ABOUT 46 YEARS
S/O MR SHANKARLAL H
RESIDING AT NO.20
SHANTAPPA LANE
SJP ROAD CROSS
BENGALURU-560 002.
12 . MR. ROOPLAL F
S/O MR FATHECHAND W
AGED ABOUT 48 YEARS
RESIDING AT NO.39/17
KRISHNA VILLA
II MAIN, KEMPANNA LAYOUT
PALACE GUTTAHALLI
BENGALURU-560 020.
13 . MR. JYOTINATH GANGULY
S/O PROF J GANGULY
AGED ABOUT 60 YEARS
RESIDING AT NO.281
7TH CROSS
15TH MAIN, RAJMAHAL
VILAS EXTENSION
BENGALURU-560 080.
14 . MR. JHUMLA GANGULY
W/O MR JYOTHINATH GANGULY
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AGED ABOUT 51 YEARS
RESIDING AT NO.281
7TH CROSS
15TH MAIN, RAJMAHAL
VILAS EXTENSION
BENGALURU-560 080.
15 . MR. LALCHAND NAGPAL
S/O LATE MR TOTARAM NAGPAL
AGED ABOUT 70 YEARS
RESIDING AT ASHIRWAD
NO.8/H
ST MICHEL SCHOOL ROAD
SHANTHINAGAR
BENGALURU-560 027.
16 . MR. RAJESH NAGPAL
S/O MR LALCHAND NAGPAL
AGED ABOUT 49 YEARS
RESIDING AT ASHIRWAD
NO.8/H
ST MICHEL SCHOOL ROAD
SHANTHINAGAR
BENGALURU-560 027.
17 . MR. MOHAN LAL R NAGPAL
S/O LATE RADHAKISHINDAS
AGED ABOUT 82 YEARS
RESIDING AT KCN MANSION
FLATN O.24, YAMUNA BHAI ROAD
MADHAVNAGAR
BENGALURU-560 001.
18 . MR. PREM KUMAR M. NAGPAL
S/O MR MOHANLAL R NAGPAL
AGED ABOUT 59 YEARS
RESIDING AT KCN MANSION
FLAT NO.24
YAMUNA BHAI ROAD
MAHDAVNAGAR
BENGALURU-560 001.
19 . MR DEEPAK B MENDA
S/O MR BIHARILAL H MENDA
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AGED ABOUT 53 YEARS
RESIDING AT NO.19
DEEPAK, ST MICHEAL SCHOOL ROAD
SHANTINAGAR
BENGALURU-560 027.
20 . MR. BABITA D MENDA
WIFE OF MR. DEPAK D.MENDA
AGED ABOUT 50 YEARS
RESIDING AT NO.19
DEEPAK
ST.MICHEAL SCHOOL ROAD
BEHIND CHURCH
SHANTINAGAR
BANGALURU-560027.
21 . MRS. JAYASHREE PRASAD
D/O. MR. KRUPAD
ANANTHRAM SHAMANNA
AGED ABOUT 66 YEARS
RESIDING AT NO.104
VASHISHTA BLOCK
TAPOVAN APARTMENTS
VISHVESHWARANAGAR
3RD STAGE
MYSURU-570 008.
22 . MR. ARSHAD KAZI
S/O MR. KAZI RASHID ABDUL
AGED ABOUT 53 YEARS
RESIDING AT NO.A004
SURYA KIRAN APARTMENTS
42/1, NETAJI ROAD
BENGALURU-560 005.
23 . MR. MAHESH K NAIR
S/O MR. V. KUMARAN
AGED ABOUT 43 YEARS
RESIDING AT NO.A003
8TH C MAIN
RAHEJA RESIDENCY
KORAMANGALA, 3RD BLOCK
BENGALURU-560 034.
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24 . MR. QURRAM JAFFER
S/O MR. MOHAMMED RIYAZUR RAHMAN
AGED ABOUT 55 YEARS
RESIDING AT NO.639
12TH CROSS, 7TH MAIN
BTM LAYOUT II STAGE
BENGALURU-560 076.
MR. IZZAM JAFFAR
25 . S/O MR. YUSUF JAFFAR KUTTY
AGED ABOUT 62 YEARS
RESIDING AT
NO.64/2017-B NEHMA
KATHRIKADUVU
COCHIN
KALOOR
ERNAKULAM-682 017.
26 . MR. VINOD RAJANI
S/O MR. LATE SHYAMLAL B. RAJANI
AGED ABOUT 56 YEARS
RESIDING AT NO.4205
2ND FLOOR
HIGH POINT 4
NO.45, PALACE ROAD
BENGALURU-560 001.
27 . MRS. KRUPA RAJANI
W/O MR. ARUN S. RAJANI
AGED ABOUT 47 YEARS
RESIDING AT NO.522
1ST FLOOR
THE EMBASSY APARTMENT
15, ALI ASKAR ROAD
BENGALURU-560 052.
28 . MR. ARUN RAJANI
S/O LATE MR. SHYAMLAL B. RAJANI
AGED ABOUT 49 YEARS
RESIDING AT NO.522
1ST FLOOR
THE EMBASSY APARTMENT
15, ALI ASKAR ROAD
BENGALURU-560 052.
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29 . MR. SURESH KUMAR RAMCHAND
S/O LATE MR. RAMCHAND KUSHIRAM
AGED ABOUT 63 YEARS
RESIDING AT NO.27
SNS PLAZA
NO.41, KUMARA KRUPA ROAD
BENGALURU-560 001.
30 . MR. SURAJ PRAKASH RAMCHAND
S/O LATE MR. RAMCHAND KUSHIRAM
AGED ABOUT 48 YEARS
RESIDING AT NO.27
SNS PLAZA
NO.41, KUMARA KRUPA ROAD
BENGALURU-560 001.
31 . MRS. KIRAN SURESH KUMAR
W/O MR. SURESH KUMAR RAMCHAND
AGED ABOUT 57 YEARS
RESIDING AT NO.27
SNS PLAZA
NO.41, KUMARA KRUPA ROAD
BENGALURU-560 001.
32 . MR. SANJAY KUMAR RAMCHAND
S/O LATE MR. RAMCHAND KUSHIRAM
AGED ABOUT 54 YEARS
RESIDING AT NO.27
SNS PLAZA
NO.41, KUMARA KRUPA ROAD
BENGALURU-560 001. ... APPELLANTS
(BY SHRI. S. BASAVARAJ, SENIOR ADVOCATE FOR
SHRI. GOUTHAM A.R, ADVOCATE)
AND :
1. MR. G RAMAIYA REDDY
AGED ABOUT 90 YEARS
RESIDING AT No. 668-1
D MAIN ROAD
DOMLUR LAYOUT
BENGALURU - 560 071
SINCE DECEASED AND
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REPRESENTED BY ITS
LEGAL REPRESENTATIVES
1(a) Mr. R SANDEEP
S/O Mr. R. RAGHAVA REDDY
RESIDING AT No. 668-1
D MAIN ROAD
DOMLUR LAYOUT
BENGALURU - 560 071.
1(b) MR. D ABHISHEK
SON OF MR. R DASHRATH REDDY
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
2. MR. R GURU REDDY
SON OF G RAMAIYA REDDY
AGED ABOUT 69 YEARS
RESIDING AT NO.79/9
FIRST FLOOR
NANDIDURG ROAD
BENSON TOWN
BANGALORE-560 071.
3. MR. R RAGHAVA REDDY
SON OF G RAMAIYA REDDY
AGED ABOUT 68 YEARS
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE - 560 071.
4. MR. R DASHRATH REDDY
SON OF G RAMAIYA REDDY
AGED ABOUT 65 YEARS
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
5. M/S. IDEB PROJECTS PRIVATE LIMITED
NO.9TH AND 10TH FLOOR
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SIGMA TECH PARK
DELTA TOWERS, NO.7
WHITEFIELD MAIN ROAD
BANGALORE-560 066.
6. MR. VELAYUDHAM JAYAVEL
LIQUIDATOR FOR IDEB
PROJECTS PRIVATE LIMITED
F1, WINDSOR
MEENAKSHI
5TH CROSS, PAI LAYOUT
HULIMAVU
BANGALORE-560 076. ... RESPONDENTS
(BY SHRI. R.V.S. NAIK, SENIOR ADVOCATE FOR
SHRI. NITIN PRASAD, ADVOCATE FOR
R1(A & B) AND R2-R4;
SHRI. VAMSHI KRISHNA, ADVOCATE FOR R6;
R5-LIQUIDATOR)
THIS COMMERCIAL APPEAL IS FILED UNDER SECTION 13 OF
THE COMMERCIAL COURTS ACT, 2015, PRAYING TO CALL FOR
RECORDS IN COMMERCIAL EXECUTION CASE NO.4305/2018 PENDING
ON THE FILES OF THE COURT OF THE LXXXVIII (88TH) ADDITIONAL
CITY CIVIL AND SESSIONS JUDGE (COMMERCIAL COURT) (CCH 89)
AT BENGALURU AND ETC.
IN COMAP NO.35 OF 2022
BETWEEN:
1. MR. MITRESH RAMACHANDRA
S/O MR R RAMACHANDRASAMY
AGED ABOUT 48 YEARS
RESIDING AT NO.201
BUILDING NO.3
INDUS ASPIRE, 3RD MAIN
BHOOPASANDRA
BENGALURU-560 094.
2. MRS. DIVYASRI NANDINI
W/O MR MITRESH RAMACHANDRA
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AGED ABOUT 45 YEARS
RESIDING AT NO.201
BUILDING NO.3
INDUS ASPIRE
3RD MAIN, BHOOPASANDRA
BENGALURU-560 094.
3. MRS. VANDANA KALRA
W/O MR CHANDRABHAN KALRA
AGED ABOUT 51 YEARS
RESIDING AT
PRESTIGE ELPALASION, G-03, NO.6
EDWARD ROAD
BENGALURU-560 052.
4. M/S. KSHEMA GEO CONSULTANTS
PARTNERSHIP FIRM
REPRESENTED BY ITS
AUTHORISED SIGNATORY
MR. SHANSHIDHAR BANAD
S/O MR CHANDRASHEKAR BANAD
AGED ABOUT 55 YEARS
OFFICE AT NO.103-104
PRESTIGE ATRIUM, NO.1
CENTRAL STREET
SHIVAJI NAGAR
BENGLAURU-560 001.
5. MRS. SHOBA KAIRO
W/O MR RADHAKRISHINDAS
AGED ABOUT 70 YEARS
RESIDING AT NO.136
RAJMAHAL VILLAS
9TH MAIN, 6TH CROSS
BENGALURU-560 080.
6. MR. KARAN GUPTHA
S/O V N GUPTHA
AGED ABOUT 37 YEARS
RESIDING AT NO.283
4TH MAIN, 5TH CROSS
1ST BLOCK
KORAMANGALA
BENGALURU-560 034.
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7. MR. JAWAHAR GOPAL
S/O LATE SRI GOPAL RAMANARAYANA
AGED ABOUT 67 YEARS
M/S FEATHERLITE PRODUCTS (P) LTD
NO.2, TIMBER YARD LAYOUT
MYSORE ROAD
BENGALURU-560 026.
8. MR. MANOHAR GOPAL
S/O LATE SRI. GOPAL RAMANARAYAN
AGED ABOUT 61 YEARS
M/S FEATHERLITE PRODUCTS (P) LTD
NO.2 TIMBER YARD LAYOUT
MYSORE ROAD
BENGALURU-560 026.
9. MR. DHIREN GOPAL
S/O LATE SRI GOPAL RAMANARAYAN
AGED ABOUT 57 YEARS
M/S FEATHERLITE PRODUCTS (P) LTD
NO.2, TIMBER YARD LAYOUT
MYSORE ROAD
BENGALURU-560 026.
10 . MR. UMESH R ROHRA
S/O RADHAKRISHNA ROHRA
AGED ABOUT 53 YEARS
RESIDING AT NO.D-501
WILSON MANOR APARTMENT
13TH CROSS
WILSON GARDEN
BENGALURU-560 027.
11 . MR. PERIKAL M. SUNDAR
S/O MR. P MUNISWAMAPPA
AGED ABOUT 63 YEARS
RESIDING AT NO.1936
30TH CROSS
9TH MAIN, B.S.K. 2ND STAGE
BENGALURU-560 070.
12 . MRS. P.S. KAVITHA
W/O P.M. SUNDAR
AGED ABOUT 52 YEARS
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RESIDING AT NO.1936
30TH CROSS
9TH MAIN, B.S.K. 2ND STAGE
BENGALURU-560 070.
13 . MRS. RAJKUMAR RAJANI
W/O MR LATE SHAMLAL RAJANI
AGED ABOUT 76 YEARS
NO.4205, 2ND FLOOR
HIGH POINT VI 45
PALACE ROAD
BENGALURU-560 001.
14 . MRS. SHUBHA RADHAKRISHNA
W/O MR. T RADHAKRISHNA
AGED ABOUT 60 YEARS
RESIDING AT NO.371
5TH CROSS, 13TH MAIN
RAJMAHAL EXTENSION
SADASHIVNAGAR
BENGALURU-560 080.
15 . MR. MOHAMMED SUHAIL SHAIK
S/O MR LATE S M YACOOB
AGED ABOUT 46 YEARS
RESIDING AT 'SHABNAM'
LADYHILL
MANGALORE-570 006.
16 . MR. SUBHASH CHANDRA GOYAL
S/O LATE SRI. MOTIRAM GOYAL
AGED ABOUT 67 YEARS
RESIDING AT NO.579
14TH CROSS
J P NAGAR
BENGALURU-560 078.
17 . MR. ANKUR GOYAL
S/O MR. SUBASH CHANDRA GOYAL
AGED ABOUT 41 YEARS
RESIDING AT NO.579
14TH CROSS
J P NAGAR
BENGALURU-560 078.
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18 . MRS. PREETI GOYAL
W/O MR. ANKUR GOYAL
AGED ABOUT 39 YEARS
RESIDING AT NO.579
14TH CROSS
J P NAGAR
BENGALURU-560 078.
19 . MR. SATISH M
S/O MR. MOHANLAL DAYARAM
AGED ABOUT 55 YEARS
RESIDING AT NO.59/D
1ST MAIN, YADAVAGIRI
MYSURU-570 020.
20 . MR. RAJU SWAMY
S/O G HANUMANTH SWAMY
AGED ABOUT 56 YEARS
RESIDING AT NO.05
GODOWN STREET
BENGALURU-560 002.
21 . MR. HASSAN MOOSA
AGED ABOUT 65 YEARS
RESIDING AT NO.37/4
CUNNINGHAM ROAD CROSS
JAYRAMDAS LAYOUT
BANGALORE-560 052.
22 . M/S JANA PRIYA INVESTMENTS PVT LTD.
REPRESENTED BY ITS
DIRECTOR
MR. GANAPATHLAL JAIN
S/O LATE MR. MANMALIJI JAIN
AGED ABOUT 62 YEARS
RESIDING AT NO.16, 1ST CROSS
MADHAVNAGAR
BANGALORE-560 001 ...APPELLANTS
(BY SHRI. S BASAVARAJ, SENIOR ADVOCATE FOR
SHRI. YASHAS KUMAR S, ADVOCATE)
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AND:
1. MR. G. RAMAIYA REDDY
AGED ABOUT 90 YEARS
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
SINCE DECEASED AND REPRESENTED
BY ITS LEGAL REPRESENTATIVES
1(a) MR. R. SANDEEP
S/O MR. R. RAGHAVA REDDY
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
1(b) MR. D. ABHISHEK
S/O MR. R DASHRATH REDDY
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
2. MR. R. GURU REDDY
S/O G RAMAIYA REDDY
AGED ABOUT 69 YEARS
RESIDING AT NO.79/9
FIRST FLOOR
NANDIDURG ROAD
BENSON TOWN
BANGALORE-560 071.
3. MR. R. RAGHAVA REDDY
S/O G RAMAIAY REDDY
AGED ABOUT 68 YEARS
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
4. MR. R. DASHRATH REDDY
S/O G RAMAIYA REDDY
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15
AGED ABOUT 65 YEARS
RESIDING AT NO.668-1
D MAIN ROAD
DOMLUR LAYOUT
BANGALORE-560 071.
5. M/S. IDEB PROJECTS PRIVATE LIMITED
NO.9TH AND 10TH FLOOR
SIGMA TECH PARK
DELTA TOWERS, NO.7
WHITEFIELD MAIN ROAD
BANGALORE-560 066.
6. MR. VELAYUDHAM JAYAVEL
LIQUIDATOR OF IDEB
PROJECTS PRIVATE LIMITED
F-1, WINDSOR
MEENAKSHI, 5TH CROSS
PAI LAYOUT, HULIMAVU
BANGALORE-560 076. ...RESPONDENTS
(BY SHRI. R.V.S. NAIK, SENIOR ADVOCATE FOR
SHRI. NITIN PRASAD, ADVOCATE FOR
R1(A & B) AND R2-R4;
SHRI. VAMSHI KRISHNA, ADVOCATE FOR R6;
R5-LIQUIDATOR)
THIS COMMERCIAL APPEAL IS FILED UNDER SECTION 13 OF
THE COMMERCIAL COURTS ACT, 2015, PRAYING TO CALL FOR
RECORDS IN COMMERCIAL EXECUTION CASE NO.4305/2018 PENDING
ON THE FILES OF THE COURT OF THE LXXXVIII (88TH) ADDITIONAL
CITY CIVIL AND SESSIONS JUDGE (COMMERCIAL COURT) (CCH 89)
AT BENGALURU AND ETC.
THESE COMAPs, HAVING BEEN HEARD AND RESERVED FOR
JUDGMENT ON 30.06.2022 COMING ON FOR PRONOUNCEMENT OF
JUDGMENT, THIS DAY, P.S.DINESH KUMAR J, PRONOUNCED THE
FOLLOWING:-
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16
JUDGMENT
These two appeals are filed by the sub-lessees
challenging order dated December 17, 2021, in Commercial
Execution Case No.4305/2018 on the file of the Court of
LXXXXVIII Additional City Civil & Sessions Judge
(Commercial Court) at Bangalore.
2. Brief facts of the case are, respondents No.1 to 4
are the owners of properties bearing Municipal Nos.15, 16
and 17 on Cunningham road, Bengaluru. They entered into
an agreement with M/s IDEB Projects1 and a Mall named as
'Sigma Mall' was constructed on the land. Appellants are
sub-lessees in respect of their respective shops in the
Sigma Mall. IDEB did not fulfill it's terms of lease. In
substance, it did not pay any money to the land owners and
they initiated arbitration proceedings and obtained an
award for delivery of possession and payment of arrears of
rent. In the Commercial Execution Case No.4305/2018 filed
Respondent No.5, M/s IDEB for short COMAP No.36/2022 C/W COMAP 35/2022
by the land owners, appellants filed an application under
Order 21 Rule 97 CPC for dismissal of Execution
proceedings and to declare that appellants had independent
right over the property and the arbitral award was void.
The same has been dismissed by the Commercial Court.
Hence, these appeals.
3. Shri S.Basavaraj, learned Senior Advocate for the
appellants mainly submitted
• that appellants have filed O.S.No.4488/2021 seeking a
declaration that the arbitral award is void and
unenforceable against appellants;
• that Order 21 Rule 29 CPC requires the Executing
Court to await decision of the Civil Court; and
• that Executing Court ought to have held an enquiry
and given an opportunity to the appellants to pay the
arrears of rent.
4. In substance, Shri Basavaraj argued that
appellants being sub-lessees, have independent right of COMAP No.36/2022 C/W COMAP 35/2022
possession. They have filed a suit for a declaration that
arbitral award is not binding on them. The Executing Court
should have given them an opportunity to pay the arrears.
5. In reply, Shri R.V.S. Nayak, learned Senior
Advocate for respondents No.1(a & b) and 2 to 4 submitted
that owners of the land have executed lease deed dated
March 13, 2006 for a period of 30 years and subsequently,
another lease deed dated March 27, 2006 for another 30
years. Appellants have entered into sub-lease with
M/s IDEB and come in possession of the respective shops.
Clause XVII in the first agreement and Clause XVI in the
second agreement provide for dispute resolution by
arbitration. In both the lease agreements, the lessee is M/s
IDEB. It is not necessary in law to initiate proceedings
against the sub-lessees. Land owners have initiated
arbitration proceedings against M/s IDEB and obtained the
award and filed the execution petition.
COMAP No.36/2022 C/W COMAP 35/2022
6. Shri Nayak contended that an application under
Order 21 Rule 97 CPC is maintainable only by the decree
holder in such cases where there is resistance for execution
of any decree. Land owners have not obtained the delivery
warrants. Hence, there is no question of appellants
resisting the decree holder. Hence, an application under
21 Rule 97 CPC at the instance of appellants is not
maintainable.
7. Shri Nayak further submitted that M/s IDEB had
entered into various sub-leases and such shop owners claim
to have made the payment to M/s IDEB. M/s IDEB is facing
liquidation proceedings and sixth respondent has been
appointed as a liquidator.
8. With the above submission, he prayed for
dismissal of these appeals.
9. We have carefully rival submissions and perused
the records.
COMAP No.36/2022 C/W COMAP 35/2022
10. Undisputed facts of the case are, land owners
have executed first lease deed dated March 13, 2006 in
favour of M/s IDEB. Article XIV of the lease deed reads as
follows:
"SUBLEASE
The lessee shall be allowed to sublease, sublet, and/or otherwise part with possession of the Scheduled Land or any part thereof or the CC to be constructed thereon or part thereof. However the term of the sub lease etc., shall be co-terminus with the expiry date fixed hereunder i.e. 05.11.2032.
PROVIDED THAT the Lessors shall not be liable to such sub-lessees for any advances or deposits received by the Lessee from the sub-lessees or for any claim arising out of any alleged breach of contract between the Lessee and the sub-lessees.
PROVIDED FURTHER THAT it shall be the sole responsibility of the Lessee to secure vacant possession of the Schedule Land from the sub-lessees before delivering vacant possession of the Schedule Land together with the CC and other buildings and improvements to the Lessors on the expiry of the lease (or on the expiry of any renewed period of this Lease, as the case may be)."
COMAP No.36/2022 C/W COMAP 35/2022
11. Thus, the lease deed provides for sub-lease for a
period co-terminus with the date of expiry of the lease deed
and land owners have been protected against any claim by
the sub-lessees. Further, M/s IDEB has covenanted to
secure vacant possession from the sub-lessees and deliver
it to land owners on expiry of lease.
12. Section 3 of Article VIII of second lease agreement
dated March 27, 2006 reads as follows:
"Section 3: Termination of First Lease.
In the event the First Lease has been prematurely terminated or sooner or earlier determined as provided therein, then this Lease Deed shall automatically and forthwith come to an end and stand cancelled and terminated and neither party shall have any claim against each other or be liable to fulfill any obligations under this Lease Deed. In such a case the Lessee shall deliver the possession of the Schedule Land and the CC to the Lessors in accordance with the First Lease and clause 5 of Article VII shall also stand terminated."
13. Thus, in case the first lease is terminated or
determined, then the second lease shall automatically and
forthwith come to an end and stand cancelled.
COMAP No.36/2022 C/W COMAP 35/2022
14. Land owners have filed statement of objections
and produced sub-lease agreement dated July 27, 2006 as
per Annexure-R5. Shri Nayak, on instructions submitted
that all sub-leases have been executed by M/s IDEB for
periods beyond 30 years. Adverting to Annexure-R5, he
pointed out that sub-lease in this case between M/s IDEB
and Mr.Raju Swamy is for a period of 56 years. The first
lease deed would expire by efflux of time on March 26,
2026. The same has been determined by the land owners
and the arbitral award has been passed on November 3,
2014. Therefore, according to Shri Nayak, second lease deeds
have automatically come to end.
15. It is also not in dispute that only M/s IDEB is the
sole respondent in the arbitration proceedings. In
response to Shri Basavaraj's contention that the award is
not binding on the appellants because they were not parties
in the arbitration proceedings, Shri Nayak, placing reliance
on Roopchand Gupta Vs. Raghuvanshi(Private) Ltd. and COMAP No.36/2022 C/W COMAP 35/2022
another submitted that sub-lessee need not be made as
party. Roopchand Gupta has been followed consistently in
Burma Shell Oil Distributing now known as Bharat Petroleum
Corporation Ltd. Vs. Khaja Midhat Noor and others3 and
Balvant N. Viswamitra & others Vs. Yadav Sadashiv Mule
(dead) through LRs. & others4 Therefore, the contention
that appellants were not parties before the Arbitral Tribunal
is untenable.
16. Appellants have filed application under Order 21
Rule 97 CPC before the Commercial Court and the same has
been dismissed. The said provision reads as follows:
"Order 21 Rule 97 CPC
Resistance or obstruction to possession of immovable property.
(1) Where the holder of a decree for the possession of immovable property or the purchaser of any such property sold in execution of a decree is resisted or obstructed by any person in obtaining possession of the
AIR 1964 SC 1889 (PARA 12)
(1988)3 SCC 44 (PARA 12)
(2004) 8 SCC 706 (PARA 28) COMAP No.36/2022 C/W COMAP 35/2022
property, he may make an application to the Court complaining of such resistance or obstruction.
(2) Where any application is made under sub-rule (1), the Court shall proceed to adjudicate upon the application in accordance with the provisions herein contained."
(Emphasis supplied)
17. It was argued by Shri Nayak that this provision is
applicable where holder of a decree and land owners in this
case is resisted by any person during the course of
execution. He contended, appellants have filed their
application under Order 21 Rule 97 CPC even before
issuance of delivery warrants. Therefore the said
application is not maintainable. He also contended that
O.S.No.4488/2021 was filed after execution petition was
filed. Therefore, no proceeding was pending as on the date
of filing of the execution petition. Therefore, appellants'
application under Order 21 Rule 29 CPC was not
maintainable at all. Shri Basavaraj fairly submitted that
suit was indeed filed after filing the application under Order
21 Rule 29 CPC. In our view, Shri Nayak is right in COMAP No.36/2022 C/W COMAP 35/2022
contending that appellants' application under Order 21 Rule
29 CPC was not maintainable because, suit was filed
subsequently.
18. The Executing Court has held that appellants
have failed to establish their independent right in the Mall
and therefore not entitled for any enquiry under Order 21
Rule 101 CPC.
19. In view of Roopchand and other subsequent
decisions referred to above, sub-lessees need not be made
as parties. By the arbitral award, lessee has been directed
to hand over possession of the properties. M/s IDEB is
facing liquidation proceedings. Appellants have entered into
sub-leases after execution of second lease deed between
owners and M/s IDEB and the same has been recorded in
the sub-lease (Annexure-R5). Thus, the finding recorded
by the Executing Court that appellants have failed to
establish their independent right and therefore, not entitled COMAP No.36/2022 C/W COMAP 35/2022
for an enquiry under Order 21 Rule 101 CPC, does not call
for interference.
20. Resultantly, these appeals fail and they are
accordingly dismissed.
No costs.
Sd/-
JUDGE
Sd/-
JUDGE
Yn.
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