Manyata Developers Private ... vs Arcil-Ast-Ix-Trust
2023 Latest Caselaw 3660 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU
         DATED THIS THE 23RD DAY OF JUNE, 2023
                        PRESENT
         THE HON'BLE MR. JUSTICE ALOK ARADHE
                          AND
     THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
                  COMAP NO.70 OF 2022
                          C/W
                 COMAP NO.219 OF 2023

IN COMAP NO 70 OF 2022

BETWEEN:

1.     ASSET RECONSTRUCTION COMPANY (INDIA) LTD.
       A COMPANY INCORPORATED UNDER
       THE COMPANIES ACT 1956
       HAVING ITS REGISTERED OFFICE
       AT THE RUBY, 10TH FLOOR, 29
       SENAPATI BAPAT MARG, DADAR (WEST)
       MUMBAI, MAHARASHTRA -400028
       REP. BY ITS AUTHORISED SIGNATORY
       MR. SHIVSHANKAR U.B.
                                         ...APPELLANT

(BY MR. V. SRINIVASA RAGHAVAN, SR. COUNSEL FOR
    MS. SAHANA DEVANATHAN A/W
    MR. CHAITANYA SHARMA, ADVS.,)

AND:

1.      MANYATA DEVELOPERS PVT. LTD.
        A COMPANY INCORPORATED UNDER THE
        PROVISIONS OF THE COMPANIES ACT 1956
        HAVING ITS REGISTERED OFFICE AT NO.9/1
        2ND FLOOR, CLASSIC COURT
        RICHMOND ROAD, BENGALURU
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      KARNATAKA-560025
      REP. BY ITS AUTHORISED SIGNATORY.
                                       ...RESPONDENT

(BY SRI. S.M. CHANDRASHEKAR, SR. COUNSEL FOR
    SRI. CHANDRASHEKAR PATIL, ADV.,)

      THIS COMAP/COMMERCIAL APPEAL IS FILED UNDER
SECTION     13(1) OF   THE  COMMERCIAL    COURTS,
COMMERCIAL DIVISION AND COMMERCIAL APPELLATE
DIVISION OF HIGH COURTS ACT, 2015 R/W SECTION
37(1)(B) OF THE ARBITRATION AND CONCILIATION ACT,
1996, PRAYING TO CALL FOR LOWER COURT RECORDS IN
COMM.A.A.NO.201/2021, FILED BEFORE THE HON'BLE
COURT OF THE LXXXV ADDL. CITY CIVIL AND SESSIONS
JUDGE AT BENGALURU. (C.C.H.86). ALLOW THE PRESENT
APPEAL. CONSEQUENTLY, SET ASIDE THE ORDER DATED
15/12/2021 PASSED BY THE HON'BLE COURT OF THE
LXXXV ADDL. CITY CIVIL AND SESSIONS JUDGE AT
BENGALURU IN COMM.A.A.NO.201/2021 (ANNEXURE-A) &
ETC.

IN COMAP NO.219 OF 2023

BETWEEN:

1.   MANYATA DEVELOPERS PRIVATE LIMITED
     CIN U45201KA2008PTC047296
     A COMPANY REGISTERED UNDER THE
     COMPANIES ACT 1956
     HAVING ITS REGISTERED OFFICE
     AT NO.9/1, 1ST FLOOR, CLASSIC COURT
     RICHMOND ROAD, BANGALORE 560025
     REPRESENTED BY ITS DIRECTOR
     MR. REDDY VEERANNA.
                                           ...APPELLANT

(BY SRI. S.M. CHANDRASHEKAR, SR. COUNSEL FOR
    SRI. CHANDRASHEKAR PATIL, ADV.,)
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AND:

1.    ARCIL-AST-IX TRUST
      REPRESENTED THROUGH ITS TRUSTEE.

(A)   ASSET RECONSTRUCTION COMPANY
      (INDIA) LIMITED
      HAVING OFFICE AT THE RUDY
      10TH FLOOR, 29, SENAPTHI BAPAT MARG
      DADAR (WEST), MUMBAI-400028.

(B)   L AND T FINANCE LTD.
      HAVING OFFICE AT TECHNOPOLIS
      7TH FLOOR, A WING, PLOT NO. 7
      BLOCK/BP SECTOR, SALT LAKE
      KOLKATTA, WEST BENGAL -70009.

                                      ...RESPONDENTS

(BY SRI/SMT. MANEESHA KONGOVI, ADV., FOR C/R)

      THIS COMMERCIAL APPEAL/COMAP IS FILED UNDER
SECTION     13(1)  OF   THE    COMMERCIAL    COURTS,
COMMERCIAL DIVISION AND COMMERCIAL APPELLATE
DIVISION OF HIGH COURTS ACT, 2015 READ WITH SECTION
37(1)(B) OF THE ARBITRATION AND CONCILIATION ACT,
1996, PRAYING TO ALLOW THE PRESENT APPEAL AND
CONSEQUENTLY SET ASIDE IMPUGNED ORDER DATED
21ST APRIL, 2023 PASSED BY THE LXXXV ADDL. CITY CIVIL
AND SESSIONS JUDGE, BENGALURU (COMMERCIAL COURT
CCH 86) IN COM.A.A. NO.183 OF 2023 AND. RESTRAIN THE
RESPONDENT ITS OFFICER, AGENTS, REPRESENTATIVES,
ASSIGNS, IN PURSUANCE OF THE PROCEEDINGS INITIATED
BY IT FOR RECOVERY OF THE ALLEGED AMOUNT UNDER
DEFAULT UNDER THE LOAN FACILITIES AVAILED BY THE
APPELLANT HEREIN FROM THE ORIGINAL LENDER AND ANY
OTHER ORDERS OR DIRECTIONS THAT THIS HONBLE
COURT DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF
THE PRESENT CASE.
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    THESE APPEALS HAVING BEEN HEARD AND
RESERVED FOR JUDGMENT ON 19.06.2023, COMING ON
FOR PRONOUNCEMENT OF JUDGMENT THIS DAY,
ALOK ARADHE J., DELIVERED THE FOLLOWING:

                    JUDGMENT

By a separate order passed today in CMP

No.110/2022 and CMP NO.540/2022, we have

held that the dispute between the parties is not

arbitrable. Therefore, COMAP No.70/2022 filed by

Asset Reconstruction Company India Limited is

allowed and the order dated 15.12.2021 passed in

COM. AA No.201/2021 is set aside. The COMAP

No.219/2023 filed by the Manyata Developers

Private Limited is dismissed.

Sd/-

JUDGE

Sd/-

JUDGE

SS