Disposed

M/S Indus Towers Ltd. v. M/S Mv. Communications

Karnataka HC5 Jun 2023RFA/1389/2020

Case brief

AI extract

What is this about?

In a regular first appeal against a decree for money recovery, the High Court accepted the parties' plea of amicable settlement. The court recorded a compromise petition ordering modified release of deposited funds and disposal of the appeal.

What did the court decide?

Compromise accepted; judgment and decree modified to release Rs. 1.15 crore to respondent; balance refunded to appellant; appeal disposed.

M/S Indus Towers Ltd. Vs M/S Mv. Communications — Money Laundering | Karnataka HC (2023)

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RFA No. 1389 of 2020

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 5^TH DAY OF JUNE, 2023

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PRESENT

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THE HON'BLE MR JUSTICE P.S.DINESH KUMAR

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AND

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THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA

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REGULAR FIRST APPEAL NO. 1389 OF 2020 (MON)

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BETWEEN:

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M/s. INDUS TOWERS LTD., BUILDING NO.10, TOWER-A 4^TH FLOOR, DLF CYBER CITY GURGAON HARYANA

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M/s. INDUS TOWERS LTD., KARNATAKA CIRCLE HEAD OFFICE NO.12, TOWER-D SUBRAMANYA ARCADE 7^TH FLOOR, BANNERGHATTA ROAD BANGALORE-560 029

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Digitally signed by ANUSHA V Location: HIGH COURT OF KARNATAKA

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M/s. INDUS TOWERS LTD., KARNATAKA CIRCLE HEAD OFFICE NO.12, TOWER-D SUBRAMANYA ARCADE 7^TH FLOOR, BANNERGHATTA ROAD BANGALORE-560 029

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APPELLANTS NO.1 TO 3 ONE AND THE SAME PARTY AND REPRESENTED BY ITS CIRCLE LEGAL HEAD

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SRI. ABHISHEK SRIVASTAVA …APPELLANTS

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(BY SHRI. D.M. GURURAJ, ADVOCATE)

RFA No. 1389 of 2020

AND:

M/s. MV COMMUNICATIONS M.V.HOUSE NO.323 13^TH MAIN, 18^TH CROSS NARAYANA NAGAR 1^ST BLOCK, BOOHBCS KANAKAPURA MAIN ROAD DODDAKALLASANDRA POST BENGALURU-560 062 REPRESENTED BY ITS PROPRIETOR MR. KIRAN KUMAR …RESPONDENT

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(BY SHRI. M.H. PRAKASH, ADVOCATE)

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THIS RFA IS FILED UNDER SECTION 96 OF CPC AGAINST THE JUDGMENT AND DECREE DATED 24.01.2020 PASSED IN OS.No.3259/2013 ON THE FILE OF THE XIV ADDITIONAL CITY CIVIL JUDGE, BANGALORE, PARTLY DECREEING THE SUIT FOR RECOVERY OF MONEY.

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THIS RFA, COMING ON FOR ORDERS , THIS DAY, P.S.DINESH KUMAR, J. , DELIVERED THE FOLLOWING:

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JUDGMENT

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This appeal under Section 96 of Code of

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Civil Procedure, 1908 is filed by defendants in O.S.No.3259/2013 against the judgment and

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decree dated January 24, 2020 passed by XIV Additional City Civil Judge, Bengaluru (CCH.No.28).

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Respondent herein filed the instant suit seeking recovery of Rs.73,76,624/-. Suit has been decreed.

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3 - RFA No. 1389 of 2020

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Heard Shri D.M.Gururaj, learned advocate for the appellants and Shri M.H.Prakash, learned advocate for the respondent.

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Ms.S.Latha, Assistant Manager (Legal) of the appellants-firm and Shri Kiran Kumar, proprietor of respondent-firm are present and they are identified by their respective advocates.

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Learned advocates on both sides jointly submit that during the pendency of the appeal, parties have amicably resolved the dispute. A compromise petition under Order XXIII Rule 3 read with Section 151 of CPC duly signed by the representatives of appellants-firm, respondent-firm and their respective advocates has been filed. Parties agree that they have understood the terms of the compromise. They pray that this appeal may be disposed of in terms of settlement recorded in the compromise petition.

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RFA No. 1389 of 2020

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6. The terms of compromise read as follows:

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“COMPROMISE PETITION FILED UNDER ORDER 23 RULE 3 READ WITH SECTION 151 OF CODE OF CIVIL PROCEDURE 1908

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” The appellant and respondent humbly submit as follows:

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It is submitted that the appellants and respondent have arrived at a compromise at this stage and are desirous of recording the same as hereunder.

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1. It is submitted that the appellants have preferred the present appeal challenging the judgment and decree dated 24/01/2020 passed in O.S.No.3259/2013 by Hon'ble XIV Additional City Civil Judge at Bengaluru (CCH-28). The Hon'ble trial court passed aforesaid judgment and decree directing the appellants to pay a sum of Rs. 72,09,199/(Rupees Seventy two Lakhs nine thousand one hundred and ninety nine only) along with interest at the rate of 54% per annum as per the provisions of section 15 and 16 of The Micro, Small and Medium Enterprises Development Act 2006 (MSMED Act 2006) from the date of suit till its realization.

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2. During the pendency of the current proceedings, pursuant to a scheme of amalgamation and arrangement ("the Scheme") approved by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh vide its order dated 31.05.2019 read with order dated 22.10.2020, the Answering Respondent, Indus Towers Limited having CIN NO. U92100HR2007PLC073822 stands merged into and with Bharti Infratel Limited having CIN No. L64201HR2006PLC073821 and registered office address at Park Centra, 9^th floor, Sector 30 NH-8, Gurugram - 122001 Haryana along with all its properties including mobile towers rights, claims, title, benefits, liabilities, obligations and interest therein.

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3. Further, the name of the Company 'Bharti Infratel Limited' was changed to Indus Towers Limited (having CIN No. L64201HR2006PLC073821) with effect from

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RFA No. 1389 of 2020

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10.12.2020 and its registered office changed to Building No. 10A, 4^th Floor, DLF Cyber City, Gurugram-122002 with effect from 06.08.2021. Therefore, the merged entity is now known as Indus Towers Limited having CIN No. L64201HR2006PLC073821 with registered office address at Building No.10A, 4^th Floor, DLF Cyber City, Gurugram -122002, Haryana.

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4. It is submitted that subsequent to filing of the present appeal, the appellants and the respondents have settled the matter amicably, on the following terms and conditions.

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5. Both the parties herein have agreed to settle the above matter for a sum of Rs.1,15,00,000/- (Rupees one Crore fifteen Lakhs only) as full and final settlement of all their dispute on account of whatsoever.

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6. The appellants in terms of the interim order passed by this Hon'ble Court in the present appeal on 16/12/2020, had directed the Appellant to deposit the entire decretal amount along with interest at the rate of 6% Per annum, accordingly the Appellant had deposited a sum of Rs. 1,05,71,253/- (Rupees one crore five Lakhs seventy one thousand two hundred and fifty three only) before this Hon'ble court and the same is ordered to be invested in fixed deposit in nationalized bank. Upon the order by this Hon'ble court the deposited amount was transferred to Union Bank of India to invest in the Fixed deposit in the name of Registrar General, High Court of Karnataka for the period of one year with auto renewable basis.

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7. It is submitted that out of the abovementioned deposited amount and total interest accrued thereon in the fixed deposit till date, the Appellant and Respondent herein have agreed to settle the above case with payment of sum of Rs.1,15,00,000/- (Rupees one Crore fifteen Lakhs only).

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8. It is submitted to this Hon'ble court to pass an order to release Rs. 1,15,00,000/- (Rupees one Crore fifteen Lakhs only) in favor of Respondent (MV Communications) and the remaining amount over and above to Rs 1,15,00,000/-

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RFA No. 1389 of 2020

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(Rupees one Crore fifteen Lakhs only) may ordered to be released in favor of Appellant No:1 (Indus Towers Limited)

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9. The present settlement is towards the full and final settlement of the disputes involved in the present appeal and all the claims on account of whatsoever nature of the respondent against the appellants and shall be fully and completely satisfied on receipt of payment of Rs.1,15,00,000/- (Rupees one Crore fifteen Lakhs only) by the respondent herein. The respondent hereby undertakes to withdraw the execution petition filed in Ex. Pet.No.2033/2020 pending on the file of Hon'ble XIV Addl City Civil Judge at Bengaluru (CCH-28) as settled by advancing the matter on 06/06/2023.

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10. In terms of this compromise between the parties, the appellants humbly pray to this Hon'ble court to may pass orders as

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(i) to release Rs.1,15,00,000/- (Rupees one Crore fifteen Lakhs only) in favor of respondent and the remaining amount over and above to Rs.1,15,00,000/(Rupees one Crore fifteen Lakhs only) in favor of Appellant No. 1 (Indus Towers Limited).

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(ii) that with receipt of payment of Rs. 1,15,00,000/(Rupees one Crore fifteen Lakhs only) by the respondent, the impugned decree dated 24/01/2020 passed in O.S.No.3259/2013 by Hon'ble XIV Additional City Civil Judge at Bengaluru (CCH-28) is fully satisfied.

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(iii) that respondent shall withdraw the Ex. Pet.No.2033/2020 pending on the file of Hon'ble XIV Addl City Civil Judge at Bengaluru (CCH-28).

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(iv) to refund the entire court fee paid in the above appeal.

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(v) Any other order which hon'ble court may deem fit.

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(vi) Both the parties hereby agrees with free will and consent and confirm that there are no other disputes or any other claims of whatsoever / whomsoever nature against each other.

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7 - RFA No. 1389 of 2020

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WHEREFORE, it is humbly prayed by the parties hereto that this Hon'ble court be pleased to record the compromise and close the above proceedings in terms of the compromise petition in the interests of justice.”

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In our opinion, compromise arrived at between

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the parties is lawful and hence accepted. Judgment and decree dated January 24, 2020 in O.S.No.3259/2013 passed by XIV Additional City

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Civil Judge, Bengaluru (CCH.No.28) shall stand modified in terms of compromise and this appeal is accordingly disposed of.

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Learned advocates on both sides

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submit that in compliance with order of this court dated 16.12.2020, appellants have deposited Rs.1.05 Crores before this court and the same is placed in a Fixed Deposit in the name of the Registrar General of this court. They pray that in terms of compromise, Rs.1.15 Crores may be released in favour of the respondent and the remaining sum may be refunded to the appellants. Ordered accordingly.

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8 - RFA No. 1389 of 2020

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Parties shall bear their own costs. Decree be

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drawn accordingly.

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Registry shall refund the court fee in accordance with law.

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In view of disposal of this appeal, all pending interlocutory applications do not survive for consideration and they stand disposed of .

Sd/JUDGE

Sd/JUDGE

List No.: 3 Sl No.: 3

M/S Indus Towers Ltd. v. M/S Mv. Communications

Case brief

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M/S Indus Towers Ltd. v. M/S Mv. Communications

Case brief

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