M/S Overseas Pharma Private ... vs Rajya Vokkaligara Sangha
2022 Latest Caselaw 12118 Kant

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       IN THE HIGH COURT OF KARNATAKA AT BENGALURU

        DATED THIS THE 23RD DAY OF SEPTEMBER, 2022

                         PRESENT

           THE HON'BLE MR. JUSTICE G.NARENDAR

                           AND

             THE HON'BLE MR. JUSTICE C M JOSHI

                    COMAP NO.304/2022

BETWEEN:

M/S. OVERSEAS PHARMA PRIVATE LIMITED
A COMPANY INCORPORATED
UNDER THE COMPANIES ACT, 1956 AND
EXISTING UNDER THE COMPANIES ACT, 2013,
HAVING ITS REGISTERED OFFICE AT
NO.941, 1ST FLOOR, 2ND MAIN ROAD,
22ND CROSS, BANASHANKARI, 2ND STAGE,
OPP. BDA COMPLEX,
BENGALURU - 560070
REPRESENTED BY ITS CHAIRMAN,
SRI. T.THIMMEGOWDA
S/O LATE SRI. THIMMAIAH,
AGED ABOUT 63 YEARS.
                                             ... APPELLANT

(BY SRI VIVEK SUBBAREDDY, SENIOR COUNSEL FOR
 SRIYUTHS PRADEEP S.SAWKAR, SUNDARSWAMY AND
 RAMDAS, ADVOCATES)

AND:

RAJYA VOKKALIGARA SANGHA
A SOCIETY REGISTERED UNDER
THE PROVISIONS OF THE
KARNATAKA SOCIETIES
REGISTRATION ACT, 1960
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HAVING ITS REGISTERED OFFICE
AT NO.148,
KRISHNA RAJENDRA ROAD,
VISVESHWARAPURA,
BENGALURU-560 004
REPRESENTED BY ITS
CHIEF EXECUTIVE OFFICER.
                                               ... RESPONDENT

(BY SRI D.N.NANJUNDA REDDY, SENIOR COUNSEL FOR
 SRI SUDHANVA D.S, ADV.)

     THIS COMAP IS FILED UNDER SECTION 13(1-A) OF THE
COMMERCIAL COURTS ACT, 2015, PRAYING TO SET ASIDE THE
IMPUGNED ORDER DATED 27/06/2022 IN COM.A.A.NO.232/2021
(ANNEXURE-A) AND CONSEQUENTLY ALLOW THE APPLICATION
FILED BY THE APPELLANT UNDER SECTION 9 OF THE
ARBITRATION AND CONCILIATION ACT, 1996 ETC.

     THIS COMAP COMING ON FOR "PRELIMINARY HEARING"
THIS DAY, G.NARENDAR J, DELIVERED THE FOLLOWING:


                          JUDGMENT

Heard the learned senior counsel Sri Vivek Subba

Reddy on behalf of the appellant and the learned senior

counsel Sri D.N. Nanjunda Reddy on behalf of the

respondent-Sangha.

2. Though several grounds have been raised in

impugning the order under challenge, it was candidly

pointed-out that the appellant has already resorted to the

procedure of appointment of an Arbitrator and in that

direction has filed CMP No.698/2022 and that the same is

pending. In that view of the matter, on a suggestion from

the Court, the parties agreed to have the issues finally

settled by the Arbitral Tribunal and pray that in the

meanwhile, certain amicable interim arrangement be

ordered pending initiation of the arbitral proceedings. In

that view of the matter, the parties having resolved and

having agreed upon to appoint former judge of this Court

Hon'ble Shri Justice V. Jagannathan (Retd.), we deem it

appropriate to pass the following order:-

The appeal is partly allowed in the following terms:-

1) The learned Justice Shri V. Jagannathan (Retd.) is requested to act as an Arbitrator in the disputes that have arisen and are subsisting between the parties.

2) The appellant is directed to pay 50% of the accrued dues i.e. arrears of licence fee which is said to have been fixed at Rs.42.00 lakhs per month. The said amount shall be paid within a period of eight weeks.

3) The dues under the head of licence fee accrued as on today in respect of future licence fee i.e. commencing from October, 2022, the appellant

shall pay the licence fee fixed under the licence agreement.

3. It is made clear that the stipulation regarding

payment of amounts is subject to final orders that may be

passed by the Tribunal and this shall not be construed as

determining the rate of licence fee or the sums due from

one party to the other.

4. The above is only by way of an interim

arrangement and all issues raised by the parties is left open

to be decided by the Arbitrator.

5. We request the learned Arbitrator to expedite

and pass the award at the earliest in view of the fact that

the term of the licence settlement is said to comes to an

end by February, 2023.

6. It is needless to state that parties shall maintain

status-quo with regard to the business arrangement of

dispensing of medicines within the premises of the

respondent-Sangha for which the fees are charged

accordingly.

A copy of this order be transmitted to Hon'ble Shri

Justice V. Jagannathan (Retd).

Office to draw-up a decree accordingly.

In view of disposal of the appeal, pending I.As. do not

survive for consideration and is accordingly, disposed off.

Sd/-

JUDGE

Sd/-

JUDGE chs CT-HR