Partly allowed

Mysore City Corporation v. M/S. Chabbras Associates

Karnataka HC14 Jun 2024WP/10701/2024

Case brief

AI extract

What is this about?

In an execution case where the Commercial Court attached the petitioner's bank account for recovery of dues, the High Court of Karnataka examined the validity of the impugned order. The Court accepted a memo of undertaking from the petitioner and modified the payment timeline while setting aside the bank attachment order.

What did the court decide?

The order dated 02.12.2023 attaching the bank account is set aside. Order dated 11.03.2024 is modified to direct payment by 20.06.2024 and subsequent dates.

Mysore City Corporation Vs M/S. Chabbras Associates — Execution and Attachment | Karnataka HC (2024)

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NC: 2024:KHC:21237 WP No. 10701 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 14^TH DAY OF JUNE, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.I.ARUN

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WRIT PETITION NO. 10701 OF 2024 (GM-CPC)

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BETWEEN:

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MYSORE CITY CORPORATION NEW SAYYAJI RAO ROAD MYSURU- 570 024 REP. BY ITS COMMISSIONER.

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…PETITIONER

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(BY SRI. GEETHA DEVI M. P., ADV.) AND:

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Digitally signed by V MANJUSHA BAI Location: High Court of Karnataka

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M/S. CHABBRAS ASSOCIATES A REGISTERED PARTNERSHIP FIRM UNDER THE PROVISIONS OF INDIAN PARTNERSHIP ACT, 1932 HAVING ITS OFFICE AT NO. 11-1/77/14, CHILKALGODA, SECUNDERABAD TELANGANA STATE -560 061 REPRESENTED BY ITS PA HOLDER SRI. K SATISH.

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(BY SRI. A SAMPATH, ADV.)

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…RESPONDENT

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THIS PETITION IS FIELD UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO A) CALL FOR THE RECORDS IN EXECUTION CASE NO.395 OF 2022 ON THE FILE OF THE ON THE FILE OF THE COMMERCIAL COURT AND II ADDL. DISTRICT AND SESSIONS JUDGE AT MYSURU AND B) QUASH THE ORDER DATED 11/03/2024 IN COMMERCIAL EXECUTION CASE NO.395 OF 2022 ON THE FILE OF THE ON THE FILE OF THE COMMERCIAL COURT AND II ADDL. DISTRICT AND SESSIONS JUDGE AT MYSURU AS PER ANNEXURE-A.

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NC: 2024:KHC:21237 WP No. 10701 of 2024

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THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The respondent is the Decree Holder and the petitioner is Judgment Debtor and the respondent preferred Com.Ex.No.395/2022 on the file of the Commercial Court & II Additional District and Sessions Judge at Mysuru (for short, ‘Executing Court’). In the process, the Decree Holder also made an application under Section 151 of CPC wherein he sought that his dues may be recovered by way of attachment of the bank account as mentioned in the said application. The said application has been allowed in part as per the impugned order and from the said account, the dues of the petitioner has been ordered to be paid. Aggrieved by the same, the present writ petition is filed.

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The petitioner is the Mysore City Corporation and it is submitted on its behalf that the amount due will

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be paid to the respondent herein. However, for certain reasons, the amount will not be paid through the account

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3 - NC: 2024:KHC:21237 WP No. 10701 of 2024

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attached by the Execution Court and a memo dated 14.06.2024 is filed proposing as to how the dues will be cleared by the petitioner herein. The said memo of undertaking is signed by the Commissioner of Mysuru City Corporation and the signature is duly identified by the learned counsel for the petitioner. The said memo of undertaking is taken on record.

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The said memo of undertaking states that a sum of Rs.5,00,00,000/- will be paid on 30.06.2024 which is the first installment of the dues. Learned counsel for the respondent has objections towards the same and he submits that the petitioner may be directed to pay the said amount on 20.06.2024, so that the respondent can clear his dues to third parties. Learned counsel for the petitioner submits that they are willing to pay the said amount by 20.06.2024. Accordingly, petitioner is directed to pay the same by 20.06.2024.

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Learned counsel for the petitioner has further prayed for reduction of interest. Admittedly, this aspect

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4 - NC: 2024:KHC:21237 WP No. 10701 of 2024

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cannot be considered by this Court, when the decree has attained finality and what is being examined in the instant

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case is whether the execution proceedings are done correctly or not.

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5. Learned counsel for the respondent refuses to

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forego any of his claims. There is no reason why this Court could show its indulgence in this aspect.

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The respondent is however agreeable for paying

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the other amount as mentioned in the memo of undertaking and the petitioner is hereby directed to pay

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the amount as mentioned in the memo of undertaking. Accordingly, petitioner is hereby directed to pay a sum of Rs.2,00,00,000/- each on 31.07.2024 and 31.08.2024 and another sum of Rs.2,43,01,289/- on 30.09.2024. The balance amount including the interest shall be paid by the petitioner to the respondent within a period of three months thereafter.

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NC: 2024:KHC:21237 WP No. 10701 of 2024

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The petitioner undertakes not to commit any default in the said payments.

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For the aforementioned reasons, order dated 02.12.2023 in Com.Ex.No.395/2022 passed by the Execution Court attaching bank account of the petitioner is hereby set aside and the order dated 11.03.2024 stands modified as mentioned in paragraphs 3 to 6 supra. The modified order of this Court shall be executed before the Execution Court in the pending proceedings.

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Writ petition stands disposed of accordingly.

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Sd/JUDGE

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NC CT:bms List No.: 2 Sl No.: 42

Mysore City Corporation v. M/S. Chabbras Associates

Case brief

What is this about?

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Mysore City Corporation v. M/S. Chabbras Associates

Case brief

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