Disposed

The Bengaluru Metropolitan v. M/S Comfort Homes Inn

Karnataka HC23 Jun 2021MFA/7044/2019

Case brief

AI extract

What is this about?

The Bengaluru-Mangalore High Court disposed of an appeal under Section 37 against a stay order restraining the respondents from terminating a license/lease. The court held the appeal infructuous due to a subsequent interim stay order but clarified the scope of the dispute.

What did the court decide?

Appellants at liberty to recover arrears of rents other than the subject matter of the dispute before the Arbitral Tribunal.

The Bengaluru Metropolitan Vs M/S Comfort Homes Inn — Arbitration | Karnataka HC (2021)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 23^RD DAY OF JUNE, 2021

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PRESENT

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THE HON’BLE MRS.JUSTICE S.SUJATHA

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AND

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THE HON’BLE MR. JUSTICE E.S.INDIRESH

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M.F.A.No.7044/2019 (AA)

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BETWEEN :

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1 . THE BENGALURU METROPOLITAN TRANSPORT CORPORATION CENTRAL OFFICE, II FLOOR, K.H.ROAD, SHANTHINAGAR, BENGALURU-560027 REP BY ITS MANAGING DIRECTOR

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2 . THE CHIEF TRAFFIC MANAGER (COMMERCIAL) TRAFFIC COMMERCIAL DEPARTMENT CENTRAL OFFICE, II FLOOR, K.H.ROAD, SHANTHINAGAR, BENGALURU-560027

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BOTH ARE REP BY THE CHIEF LAW OFFICER, BMTC CENTRAL OFFICES K.H.ROAD, SHANTHINAGAR BENGALURU-560027 ...APPELLANTS

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(BY SRI B.L.SANJEEV, ADV.)

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AND :

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M/s COMFORT HOMES INN (BENGALURU) PRIVATE LIMITED NO.1, II FLOOR, BMTC COMPLEX,

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- 2 -

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WHITEFIELD TTMC, BENGALURU-560071 REP BY ITS DIRECTOR SRI M.SAMBASIVA RAO …RESPONDENT

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(BY SRI V.B.SHIVAKUMAR, ADV.)

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THIS M.F.A. IS FILED UNDER SECTION 37(1)(b) OF ARBITRATION AND CONCILIATION ACT, AGAINST THE JUDGMENT AND AWARD DATED 09.07.2019 PASSED IN A.A.No.412/2014 ON THE FILE OF THE LXIX ADDITIONAL CITY CIVIL & SESSIONS JUDGE, BENGALURU (SCCH-70), ALLOWING THE ARBITRATION APPLICATION FILED UNDER SECTION 9 OF THE ARBITRATION AND CONCILIATION ACT, 1996.

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THIS APPEAL COMING ON FOR ADMISSION, THIS DAY, S. SUJATHA, J ., DELIVERED THE FOLLOWING:

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J U D G M E N T

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This appeal is filed by the Bengaluru Metropolitan Transport Corporation (BMTC) under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 (‘Act’ for short) challenging the order dated 09.07.2019 passed by the LXIX Additional City Civil and Sessions Judge, Bengaluru (CCH-70) in A.A.No.412/2014 insofar as it pertains to restraining the appellants from terminating the license/lease entered into between the appellants and the respondent as per the Concession Agreement (Deed of License) dated 21.10.2011 till the disposal of

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the proceedings before Arbitral Tribunal, Managing Director, BMTC, Bengaluru.

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It is significant to note that this Court by

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order dated 04.12.2019 has passed the order, the relevant portion of the same is extracted herein.

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“Interim stay of the following operative portion of the impugned order dated 09.07.2019 passed in A.A.No.412/2014 by the Court below until further orders:-

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“The respondents shall not terminate the license/lease entered between the applicant and the respondent as per the Concession Agreement (Deed of license) dated 21.10.2011 till disposal of the proceedings before Arbitral Tribunal, Managing Director, BMTC, Bengaluru”.

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Learned counsel for the appellants submits

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that pursuant to the interim order passed by this Court as aforesaid, license/lease entered into between the appellants and respondent has been terminated.

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The said submission is placed on record.

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In view of the aforesaid, the appeal is

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rendered infructuous. However, it is clarified that the order passed under Section 9 of the Act is restricted to the dispute amounting to Rs.45,10,095/-, the subject matter of the dispute before the Arbitral Tribunal.

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It is needless to observe that the appellants

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are at liberty to recover the arrears of rents, if any, other than the subject matter of the dispute before the Arbitral Tribunal, in accordance with law.

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The appeal stands disposed of accordingly.

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All pending I.As. stand disposed of.

Sd/JUDGE

Sd/-

JUDGE

PMR

The Bengaluru Metropolitan v. M/S Comfort Homes Inn

Case brief

What is this about?

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The Bengaluru Metropolitan v. M/S Comfort Homes Inn

Case brief

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