Allowed¶45

Official Liquidator of M/S United Breweries (Holdings) Limited (in Liquidation) v. M/S Sublime

Karnataka HC5 Jun 2025CA/447/2023

Case brief

AI extract

What is this about?

COVID-19 rent waiver; waiver of rental during lockdown and restriction period; Official Liquidator of M/s United Breweries (Holdings) Limited (In Liquidation); M/s Sublime; Prestige Estates Projects Limited; UB City, Vittal Mallya Road, Bengaluru; Companies (Court) Rules, 1959 - Rules 6 & 9; Company Petition No.57 of 2012; CA No.234 of 2022; CA No.447 of 2023; earlier orders CA No.153/2021 and CA No.165/2021; 100% waiver 01.04.2020-07.06.2020; 50% waiver 01.05.2021-30.06.2021; parity with earlier COVID-era rent-waiver orders; Karnataka High Court company application; Justice Ashok S.Kinagi.

What did the court decide?

Waiver of 100% of the rental payable by respondent No.1 for 01.04.2020 to 07.06.2020 and 50% of the rental value for 01.05.2021 to 30.06.2021. ¶45

Official Liquidator of M/S United Breweries (Holdings) Limited (in Liquidation) Vs M/S Sublime — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Waiver of 100% of the rental payable by respondent No.1 for 01.04.2020 to 07.06.2020 and 50% of the rental value for 01.05.2021 to 30.06.2021.

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Issue for consideration

Whether respondent No.1 (M/s Sublime) is entitled to waiver of rent payable to the applicant (Official Liquidator) for the COVID-19 lockdown and restriction period, on terms similar to the waivers earlier granted in CA No.153/2021 and CA No.165/2021.

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Court's answer

Respondent No.1 is entitled to the same benefit as granted in CA No.165/2021 in COP No.57/2012, namely waiver of rentals for the COVID-19 lockdown and restriction periods.

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Ratio / Principle

100% of the rental payable by respondent No.1 for the period 01.04.2020 to 07.06.2020, when there was a complete lockdown and the respondent could not operate its business, is waived.

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Key takeaways

50% of the rental value payable by respondent No.1 for the period 01.05.2021 to 30.06.2021, when there was a lockdown but the respondent was allowed to operate its business, is waived.ratio¶46

Detailed headnote1 paragraphs

High Court of Karnataka at Bengaluru (Hon'ble Mr Justice Ashok S.Kinagi), oral order dated 05.06.2025: Company Application No.447 of 2023 (under Rules 6 & 9 of the Companies (Court) Rules, 1959) in CA No.234 of 2022 in Company Petition No.57 of 2012 concerning M/s United Breweries (Holdings) Limited (In Liquidation). Respondent No.1, M/s Sublime, sought waiver of rent of Rs.1,96,858/- payable to the Official Liquidator for the COVID-19 lockdown and restriction period on the ground that no business activity was possible during that period. Following the pattern of the court's earlier orders in CA No.153/2021 and CA No.165/2021 in the same petition, the court allowed the application and waived 100% of the rental payable by respondent No.1 for 01.04.2020 to 07.06.2020 (complete lockdown; business could not operate) and 50% of the rental value for 01.05.2021 to 30.06.2021 (lockdown; business allowed to operate).

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NC: 2025:KHC:19183 CA No. 447 of 2023

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 5^TH DAY OF JUNE, 2025

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BEFORE

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THE HON'BLE MR JUSTICE ASHOK S.KINAGI

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COMPANY APPLICATION NO. 447 OF 2023 IN

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COMPANY APPLICATION NO. 234 OF 2022 IN

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COMPANY PETITION NO.57 OF 2012

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BETWEEN:

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OFFICIAL LIQUIDATOR OF M/S UNITED BREWERIES (HOLDINGS) LIMITED (IN LIQUIDATION) CORPORATE BHAVAN 12^TH FLOOR, RAHEJA TOWERS NO 26-27, M G ROAD, BENGALURU 560001

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…APPLICANT

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Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA

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(BY SRI. ALLAH BAKASH M., ADVOCATE)

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AND:

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M/S SUBLIME UNIT No. SF 2 KIOSK, SECOND FLOOR LEVEL CANBERRA BLOCK UB CITY No.24, VITTAL MALLYA ROAD BENGALURU 560001

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ALSO AT R-1, M/S SUBLIME UNIT NO 801, EIGHT FLOOR LEVEL SKYBRIDGE, SPACE CONNECTING CONCRODE AND CANBERRA BLOCK UB CITY, NO 24 VITTAL MALLYA ROAD, BENGALURU 560001 REP. BY ITS AUTHORIZED SIGNATORY MR. MOHAMMED ZAID

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2 - NC: 2025:KHC:19183 CA No. 447 of 2023

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HC-KAR

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2. PRESTIGE ESTATES PROJECTS LIMITED

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REP. BY ITS DIRECTOR MRS. UZMA IRFAN, PRESTIGE FALCON TOWERS 19, BRUNTON ROAD CRAIG PARK LAYOUT VICTORIA LAYOUT BENGALURU 560025

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…RESPONDENTS

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(BY Ms. KRITHIKA RAGHAVAN, ADVOCATE FOR OL)

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THIS COMPANY APPLICATION IS FILED UNDER RULE 6 & 9 OF THE COMPANIES (COURT) RULES, 1959, PRAYING TO DIRECT THE APPELLANT TO CONSIDER WAIVER OF RENT DURING THE COVID-19 LOCKDOWN AND RESTRICTION PERIOD A SUM OF Rs.1,96,858/- AS THERE WAS NOT BUSINESS ACTIVITIES DURING THE COVID-19 LOCKDOWN AND RESTRICTION PERIOD IN THE INTEREST OF JUSTICE AND EQUITY.

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THIS APPLICATION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI

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ORAL ORDER

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Respondent No.1 filed an application in CA

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No.447/2023 to direct the applicant to consider waiver of rent during the COVID-19 lockdown and the restriction period, as there were no business activities during the COVID -19 lockdown and the restriction period.

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NC: 2025:KHC:19183 CA No. 447 of 2023

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HC-KAR

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In support of an application, Authorised officer

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of respondent No.1, filed an affidavit stating that this court in CA No.153/2021 filed by the applicant, seeking arrears of rent in the COVID -19 period was considered the waiver and was ordered that during the COVID lockdown from 25.03.2020 to 31.5.2020 there should be 100% waiver and during the covid-19 restriction period, 50% of waiver of rent. Hence, pray to pass a similar order in this application.

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Heard the arguments of the learned counsel for the respondent No.1 and the learned counsel for the official liquidator, Ms. Krithika Raghavan, and perused the records.

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This court in CA No.165/2021 in COP No.57/2012 passed an order to revoke 100% of rentals payable by the respondent for the period of 1.04.2020 to 7.06.2020, when there was a complete lockdown and the respondent could not operate its business is waived, and 50% of the rentals for the period of 01.05.2021 to

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¶39

NC: 2025:KHC:19183 CA No. 447 of 2023

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HC-KAR

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30.06.2021, when there was a lockdown, but the respondent was allowed to operate its business is waived. The respondent No.1 is entitled to the similar benefit.

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In view of the above, I proceed to pass the

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following:

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ORDER

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i. C.A.No.447/2023 is allowed.

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ii. The 100% rental payable by the respondent No.1 for the period from 01.04.2020 to 7.06.2020, when there was a complete lockdown and the respondent could not operate its business, is waived, and 50% of the rental value for the period of 01.05.2021 to 30.06.2021, when there was a lockdown but the respondent was allowed to operate its business is waived.

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Sd/(ASHOK S.KINAGI) JUDGE

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SKS

Official Liquidator of M/S United Breweries (Holdings) Limited (in Liquidation) v. M/S Sublime

Case brief

What is this about?

What did the court decide?

Official Liquidator of M/S United Breweries (Holdings) Limited (in Liquidation) v. M/S Sublime

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

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