Karnataka High Court
Mr Nikhil Purushotham vs M/S Revera Structures Private Limited on 5 March, 2025
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COMAP No. 65 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF MARCH, 2025
PRESENT
THE HON'BLE MR N. V. ANJARIA, CHIEF JUSTICE
AND
THE HON'BLE MR JUSTICE M.I.ARUN
COMMERCIAL APPEAL NO. 65 OF 2025
BETWEEN:
1. MR. NIKHIL PURUSHOTHAM
S/O. MR. C. PURUSHOTHAM
AGED ABOUT 45YEARS
RESIDING AT NO.212
BELLARY ROAD SADASHIVANGAR
BENGALORE - 560 080.
...APPELLANT
Digitally (BY SRI S.V. GIRIDHAR, ADVOCATE)
signed by H
K HEMA AND:
Location:
High Court
of 1. M/S. REVERA STRUCTURES PRIVATE LIMITED
Karnataka
HAVING ITS REGISTERED OFFICE AT NO.64
2ND FLOOR, MAHAVEER PLAZA
8TH B MAIN ROAD, 3RD BLOCK
JAYANAGAR
BANGALORE - 560 011
REPRESENTED BY ITS AUTHORIZED
SIGNATORY MR. SANDEEP.
...RESPONDENT
(BY SRI. S. VIVEKANANDA, ADVOCATE)
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COMAP No. 65 of 2025
THIS COMAP IS FILED UNDER SECTION 13 (1-A) OF THE
COMMERCIAL COURTS ACT, 2015 READ WITH SECTION 37
OF THE ARBITRATION AND CONCILIATION ACT, 1996,
PRAYING TO SET ASIDE THE JUDGMENT PASSED BY THE
HON'BLE LXXXVII ADDITIONAL CITY CIVIL AND SESSIONS
JUDGE, (COMMERCIAL COURT) AT BANGALORE (CCH-88),
DATED 07.01.2025 IN COMMERCIAL ARBITRATION
APPLICATION NO.228/2024 AND CONSEQUENTLY ALLOW
THIS APPEAL AS PRAYER FOR; ETC.
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE
N. V. ANJARIA
and
HON'BLE MR JUSTICE M.I.ARUN
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE M.I.ARUN)
Aggrieved by the order passed in COM.A.A.No.228 of 2024,
the respondent therein has preferred this commercial appeal.
2. The appellant is the owner of the appeal schedule property.
The respondent is a Contractor. The appellant entered into a
construction agreement with the respondent. However, on the
ground that he was not satisfied with the construction, he has
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terminated the construction agreement and has invoked the
arbitration clause as per the agreement between the parties. In the
meanwhile, the respondent herein on the ground that he has not
breached any terms and conditions of the agreement and he is
entitled for the consideration for the construction already done,
preferred an application under Section 9 of the Arbitration and
Conciliation Act, 1996 with the following prayers:
"WHEREFORE the petitioner herein humbly prays that
this Hon'ble Court may be pleased to
(a) Direct the Respondent not to put up any further
construction on the schedule property, till the
commencement of arbitration by the arbitrator;
(b) Direct the Respondent, their henchmen, agents,
workers or any other parties including contractors
not to destroy the construction works executed by
the Petitioner and not to alter or remove the
labour sheds constructed by the Petitioner, till the
commencement of arbitration by the arbitrator;
and
(c) Pass any order this Hon'ble court deems fit in the
facts and circumstances of the case, in the
interest of justice and equity."
The trial Court after hearing the parties has passed the
following order:
"The application filed by applicant under Sec.9 or
Arbitration and Conciliation Act, is hereby allowed.
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Respondent is hereby restrained from putting up
any further construction on the schedule property and
not to destroy the construction works executed by the
petitioner or alter, remove the labour sheds constructed
by the petitioner till commencement of arbitration
proceedings.
Aggrieved by the aforementioned order, the present
commercial appeal is preferred.
3. The case of the appellant is that he is the owner of the
appeal schedule property and the respondent does not have any
right whatsoever on the same. It is further submitted that if at all
the respondent has any right, it is for claiming damages. It is also
submitted that the appellant is not in breach of the agreement and
the agreement was breached by the respondent. It is contended
that the impugned order is erroneous as it results in curtailing the
liberty of the appellant to utilize his property as he likes and it
recognizes a right on behalf of the respondent which is not in
existence.
4. Per contra, learned counsel for the respondent justifies the
order passed by the trial Court and prays for dismissal of the
Commercial Appeal.
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5. Given the nature of the dispute, whatever the claim that the
respondent may have, it is only in respect of amounts due to him
towards the construction and damages if any, which is the subject
matter of the arbitration to be initiated between the parties
concerned. Whether the appellant owe money to the respondent
or vice versa, is a matter to be adjudicated in the arbitration
between the parties.
6. The apprehension of the respondent is that if the appellant is
allowed to construct on the property, it may not be possible to
determine the work done by the respondent on the property
concerned. This in our opinion could be resolved if a survey of the
property is conducted and the details of the construction which has
happened so far is recorded.
7. The respondent further submits that appellant is not
co-operating for appointment of an Arbitrator and
CMP No.265 of 2024 is filed in this regard and the appellant is
trying to avoid service of notice from the Court, for which, the
appellant undertakes to appear in CMP No.265 of 2024 by next
date of hearing.
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8. Further, in the course of argument both the parties agreed to
appoint Sri.Chethan Kumar.R, No.1646, 1st Main, 5th Cross, 1st
Stage, Kumaraswamy Layout, Bangalore-560 078, to survey the
property and record the details of construction. They further agree
that the date of survey to be fixed on 16.03.2025. In the light of the
same, the following order is passed:
ORDER
i. Sri. Chethan Kumar.R, No.1646, 1st Main, 5th
Cross, 1st Stage, Kumaraswamy Layout,
Bangalore-560 078, is hereby appointed as a Surveyor
to survey the details of construction made on the appeal
schedule property. The said survey will be conducted
on 16.03.2025 and all the details pertaining to the
construction (quantity of work done) shall be recorded.
A copy of the same shall be provided to both the parties.
ii. After the completion of the survey and receipt of
the copy of the survey report by the parties concerned,
appellant shall be at liberty to put up further construction
on the property.
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iii. If required videography of the property showing
the details will also be conducted.
iv. The order passed in COM.A.A.No.228 of 2024
stands modified accordingly.
v. The appeal is disposed of.
vi. Pending interlocutory applications, if any, stand
disposed of.
Sd/-
(N. V. ANJARIA)
CHIEF JUSTICE
Sd/-
(M.I.ARUN)
JUDGE
VMB
