Indarka Energy Pvt. Ltd. Vs Mr. Siddharth Gangal — Arbitration | Karnataka HC (2025)

Indarka Energy Pvt. Ltd. Vs Mr. Siddharth Gangal — Arbitration | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal disposed of by extending the ad interim order dated 20.05.2025 - restraining the respondent from permitting third-party access to the appellant's Microsoft Azure and Cloudflare accounts without the leave of the Court - until the learned Commercial Court disposes of the appellant's pending applications; the Commercial Court to examine the applications on their own merits, uninfluenced by this Court's orders or the respondent's concession.

Issue for consideration

Whether the ad interim order dated 20.05.2025 restraining the respondent from permitting third-party access to the appellant's Microsoft Azure and Cloudflare accounts should be continued till disposal of the appellant's pending applications before the learned Commercial Court +1 more

Court's answer

The present appeal is disposed of by extending the ad interim order dated 20.05.2025 till the learned Commercial Court disposes of the pending applications

Ratio / Principle

The learned Commercial Court shall examine the pending applications on their own merits and in accordance with law

Key takeaways

Pending IAs, if any, stand disposed ofratio¶55

Detailed headnote1 paragraphs

Division Bench of the High Court of Karnataka (Vibhu Bakhru, CJ, and C M Joshi, J) disposed of Commercial Appeal No. 285 of 2025, filed under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 (cause title also cites Sec. 13(1-A) of the Commercial Courts Act, 2015), against the Commercial Court's order dated 03.05.2025 in Com.AA No.201/2025 (Section 9 application) declining ad interim relief sought by Indarka Energy Pvt. Ltd. against a former Director (resigned effective 01.12.2024) allegedly controlling its Microsoft Azure and Cloudflare accounts. The Court extended its ad interim order dated 20.05.2025 - restraining the respondent from permitting third-party access to those accounts without the Court's leave - until the Commercial Court disposes of the pending applications, clarifying that the Commercial Court shall examine them on their own merits and in accordance with law, uninfluenced by this Court's orders or the respondent's concession. Pending IAs disposed of.

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NC: 2025:KHC:30775-DB COMAP No. 285 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 7^TH DAY OF AUGUST, 2025

PRESENT

THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE

AND

THE HON'BLE MR. JUSTICE C M JOSHI COMMERCIAL APPEAL NO. 285 OF 2025

BETWEEN:

INDARKA ENERGY PVT. LTD., STALLION BUSINESS HUB, PID NO. 67-8-230/A, KORAMANGALA 6^TH BLOCK, BENGALURU-560 095. REP. BY ITS AUTHORIZED REPRESENTATIVE, MS. SHARMILA MANIKANTA DHAS

…APPELLANT

(BY MR. ADITYA CHATTERJEE, ADVOCATE)

AND:

Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA

MR. SIDDHARTH GANGAL, AGED ABOUT 29 YEARS, CURRENTLY R/AT: C 804, MANTRI FLORA, SARJAPUR ROAD, BENGALURU-560 102.

ALSO AT: B2, 522, GROUND FLOOR CHITRAKOOT, SECTOR 2 JAIPUR, RAJASTHAN-302 021.

…RESPONDENT (BY MR. DEEPANKAR LIVINGSTON, MR. BALAGOPAL MENON, MS. CHANDANA GURURAJ, ADVOCATES)

THIS COMAP IS FILED UNDER SEC.13 (1-A) OF THE COMMERCIAL COURTS ACT, 2015 PRAYING TO A. SET ASIDE

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HC-KAR

THE ORDER DATED 03.05.2025, PASSED BY THE LEARNED LXXXIX ADDL. CITY CIVIL AND SESSIONS JUDGE, COMMERCIAL COURT AT BENGALURU (CCH 90) PASSED IN COMMERCIAL ARBITRATION APPLICATION NO. 201/2025 PRODUCED AT ANNEXURE A ETC.

THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C M JOSHI

ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

The appellant has filed the present appeal under Section 37 (1)(B) of the Arbitration and Conciliation Act, 1996, [A & C Act] , impugning an order dated 03.05.2025 passed by the learned Commercial Court in application filed under Section 9 of the A & C Act in Com.AA No.201/2025.

The learned Commercial Court had not passed ad interim order as sought for by the appellant, considered apposite to issue notice to the respondent. Aggrieved by the same, the appellant has filed the present appeal

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NC: 2025:KHC:30775-DB COMAP No. 285 of 2025

HC-KAR

contending that in the given facts, it was imperative that an ad interim order be passed. Considering the submissions made by the appellant, this Court had passed the following order on 20.05.2025:

"Sri. Aditya Chatterjee, the learned counsel for the petitioner, is heard on the grant of ad-interim order.

The petitioner's request for interim orders restraining the respondent from divulging petitioner's proprietary software material in Com. AA No.201/2025 has not been considered by the Commercial Court observing that extraordinary circumstances have not been made out to grant such order and notice, as is the general rule, must be issued to the respondent.

Sri. Aditya Chatterjee, taking this Court through the different assertions made in the appeal memorandum, submits that the respondent, who has resigned as a Director with the petitioner with effect from 01.12.2024, has logged out all the others holding control of the petitioner's proprietary software essentially denying access to its Microsoft Azure and the Cloudflare Accounts impeding business and its Customers.

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The learned counsel submits that there is every threat of the respondent, who has withdrawn his own application under Section 9 of the Arbitration and Conciliation Act, 1996, divulging the proprietary material to others, but for the present he would request this Court to grant ad-interim order directing the respondent not to give third party access to the petitioner's account with Microsoft Azure or the Cloudflare.

These submissions are considered, and this Court is of the view that a case for grant of interim order is established, and hence, the respondent is hereby restrained from permitting third party access to the petitioner's account with Microsoft Azure and the Cloudflare without the leave of this Court.

The petitioner is reserved with liberty to seek further interim orders on service of notice to the respondent .

There shall be emergent notice to the respondent returnable 10.06.2025, and in addition, Sri. Aditya Chatterjee is permitted to ensure copies of the appeal papers and a copy of this order is served on the counsel for the respondent in his application in A.A.No.61/2024."

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HC-KAR

The learned counsel for the parties submit that the ad interim order passed on 20.05.2025 be continued till the disposal of the applications preferred by the appellant by the learned Commercial Court.

The learned counsel for the respondent submits that the same is without prejudice to rights and contentions of the parties and it may be further clarified that the learned Commercial Court shall examine the applications filed by the appellant uninfluenced by the ad interim order passed by this Court.

We accept the said contention. Accordingly, the present appeal is disposed of by extending the ad interim o rder dated 20.5.2025, till the learned Commercial Court disposes of the pending applications.

We clarify that the learned Commercial Court shall not be influenced by the orders passed by this Court or the concession granted by the respondent to extend the

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ad interim order till the disposal of the pending

applications.

Needless to state that the learned Commercial Court shall examine the pending applications on their own merits and in accordance with law.

Pending IAs, if any, stand disposed of.

Sd/(VIBHU BAKHRU) CHIEF JUSTICE

Sd/(C M JOSHI) JUDGE

tsn*

List No.: 1 Sl No.: 36