IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JULY, 2019 BEFORE BETWEEN:
THE HON' BLE MR. JUSTICE B. VEERAPPA C.M.P. No.156/2018 M/S CASA BLANCA IMPEX A REGISTERED PARTNERSHIP FIRM, OFFICE NO.238, J.P.NAGAR 8TH PHASE, IA ROYAL COUNTY, BANGALORE-560 076.
REP. BY ITS MANAGING PARTNER, MR. SUNIL MADHURE.S ... PETITIONER (BY SRI ANIL KUMAR S., ADVOCATE) AND:
M/S ASHTRAL BIOTECH PVT LTD HAVING ITS REGISTERED OFFICE AT NO.204, 3RD LINK STREET, NEHRU NAGAR, KOTTIVAKKAM, CHENNAI-600041.
REPRESENTED BY ITS CHAIRMAN/ MANAGING DIRECTOR, MR.SUDHIR REDDY.
(BY SRI B. RAMESH, ADVOCATE) … ... RESPONDENT THIS CMP IS FILED UNDER SECTION 11(5) OF THE ARBITRATION AND CONCILIATION ACT 1996, PRAYING TO APPOINT SOLE ARBITRATOR IN TERMS OF THE AGREEMENT DATED: 17.01.2017 AS PER TERMS OF CLAUSE-7 (i) OF GENERAL TERMS OF THE "STOCKIEST AGREEMENT" AND REFER THE DISPUTE FOR ADJUDICATION BY THE SOLE ARBITRATOR NOMINATED BY THIS HON'BLE COURT.
THIS CMP COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER The petitioner has filed the present Civil Miscellaneous Petition under the provisions of Section 11(5) of the Arbitration and Conciliation Act, 1996 read with Rule 4 of the High Court of Karnataka Arbitration (Proceedings before the Courts) Rules, 2001 for appointment of Sole Arbitrator in terms of Clause 7(i) of General Terms of the ‘Stockiest Agreement’ dated 17.1.2017 entered into between the parties.
2. When the matter had come up before this Court on 18.7.2019, Sri B. Ramesh, learned Counsel for the respondent submitted that the respondent has agreed to settle the amount with installments. Accordingly, the learned Counsel for the respondent has filed an affidavit of Sri R. Sudhir Reddy, who is Managing Director of the respondent-Company stating on oath that he is ready and willing to pay a sum of Rs.8,00,000/- (Rupees Eight Lakhs only) to the petitioner including the principle amount and interest in installments morefully stated in para-5 of the affidavit. Paragraphs-4, 5 and 6 in the Affidavit state as under:
“4. I submit that the respondent company is liable to pay the balance amount of Rs.7,56,000/- to the petitioner, hence I being the Managing Director, I, undertake to repay the amount due to the petitioner. I submit that since the respondent company is closed and no manufacturing activities is carried for past two years, I have undertaken to repay the said amount in monthly equal installments. I submit that since the petitioner had insisted to pay interest of the said amount, this Hon’ble court has directed the respondent company to pay a sum of Rs.8,00,000/- to the petitioner which includes principle amount and interest for which I have agreed to pay the said amount to the petitioner.
5. I submit that in view of the above stated difficulties the respondent company has agreed to pay the amount of Rs.8,00,000/- in the following manner:-
i. A sum of Rs.75,000/- is paid by way of cheque bearing No.000520 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.09.2019 drawn in favour of the petitioner.
ii. A sum of Rs.75,000/- is paid by way of cheque bearing No.000521 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.10.2019 drawn in favour of the petitioner.
iii. A sum of Rs.75,000/- is paid by way of cheque bearing No.000522 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.11.2019 drawn in favour of the petitioner.
iv. A sum of Rs.75,000/- is paid by way of cheque bearing No.000523 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.12.2019 drawn in favour of the petitioner.
v. A sum of Rs.75,000/- is paid by way of cheque bearing No.000524 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.01.2020 drawn in favour of the petitioner.
vi. A sum of Rs.75,000/- is paid by way of cheque bearing No.000525 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.02.2020 drawn in favour of the petitioner.
vii. A sum of Rs.75,000/- is paid by way of cheque bearing No.000526 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.03.2020 drawn in favour of the petitioner.
viii. A sum of Rs.75,000/- is paid by way of cheque bearing No.000527 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.04.2020 drawn in favour of the petitioner.
ix. A sum of Rs.75,000/- is paid by way of cheque bearing No.000528 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.05.2020 drawn in favour of the petitioner.
x. A sum of Rs.75,000/- is paid by way of cheque bearing No.000529 drawn on Andhra Bank, Sozhinganallur Branch, Chennai-
600119 dated 15.06.2020 drawn in favour of the petitioner.
xi. A sum of Rs.75,000/- is paid by way of cheque bearing No.000530 drawn on Andhra Bank, Sozhinganallur Branch, Chennai- 600119 dated 15.07.2020 drawn in favour of the petitioner.
6. I submit that I undertake that the said cheques would be encashed and cleared on the due date.
I submit that the statements made above are true and correct to the best of my knowledge.
WHEREFORE, I respectfully pray that this Hon’ble court may be pleased to dispose off the above petition in terms of my undertaking in the interest of justice and equity.
3. The respondent has handed over all the eleven cheques of different dates stated supra at para-5 to the learned Counsel for the petitioner. The same is acknowledged by Sri Anil Kumar. S., learned Counsel for the petitioner. The said submission is placed on record.
4. In view of the affidavit of undertaking filed by the Managing Director of the 1st respondent-Company, Civil Miscellaneous Petition is disposed of directing the Managing Director-Sri R. Sudhir Reddy to comply with the undertaking given before the Court and pay a sum of Rs.8 lakhs (Rupees Eight Lakhs only) in the manner shown at para-5 as per the installments without any default failing which it is always open for the petitioner to file an application for revival of this order.
Sd/- Judge Nsu/-