IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20TH DAY OF FEBRUARY 2019 BEFORE THE HON’BLE MR. JUSTICE H. T. NARENDRA PRASAD WRIT PETITION No.28402/2013 ( GM-RES) C/W WRIT PETITION No.28403/2013 ( GM-RES) WRIT PETITION No.28404/2013 ( GM-RES) WRIT PETITION No.28405/2013 ( GM-RES) IN WRIT PETITION NO.28402/2013 BETWEEN:
M/S SRIRAM TRANSPORT FINANCE CO LTD NO.133, SECOND FLOOR SHIKA TOWERS, RAMA VILAS ROAD DEVARAJ MOHALLA, MYSORE-570024. RERPESENTED BY ITS MANAGER (LEGAL) M.R.MADHUSUDHAN S/O. R.K.MANAVI AGED ABOUT 48 YEARS.
... PETITIONER (BY SRI.M.J.ALVA, ADV.) AND 1. ANANDA RAJ S/O R.JOSEPH PUSHPARAJ AGED ABOUT 36 YEARS NO.2365/28, 6TH CROSS PADUVARAHALLI MYSORE-570002.
2. SHANKARE GOWDA S/O RAME GOWDA, AGED ABOUT 40 YEARS, NO.886, 21-A, 6TH CROS, BESTER BLOCK, SUYEZ FARM ROAD, VIDYARANYAPURAM, MYSORE-570008.
SINCE DECEASED REP. BY HIS LR SMT. LALITHA W/O SHANKARE GOWDA NO.886, 21-A, 6TH CROSS, BESTER BLOCK, SUYEZ FARM ROAD VIDYARANYAPURAM, MYSORE-570008.
... RESPONDENTS (R1 IS SERVED, V/O DATED:13.06.2018 R2(a) SERVICE OF NOTICE IS HELD SUFFICIENT) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 7.9.2012 PASSED BY THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE IN EX. PET. NO.529/2012 VIDE ANNEXURE-A & REVERSE THE FINDINGS AND DIRECT THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE TO CONSIDER THE EX.PET. NO.529/2012 ON MERITS AND PASS APPROPRIATE ORDERS FOR RECOVERY OF THE AWARD AMOUNT.
IN WRIT PETITION NO.28403/2013 BETWEEN M/S SRIRAM TRANSPORT FINANCE CO LTD NO.133, SECOND FLOOR SHIKA TOWERS, RAMA VILAS ROAD DEVARAJ MOHALLA MYSORE-570 024. REPRESENTED BY ITS MANAGER (LEGAL) M.R.MADHUSUDHAN S/O R.K.MANAVI AGED ABOUT 48 YEARS.
... PETITIONER (BY SRI.M. J. ALVA, ADV.) AND 1. AFJAL S/O ISMAIL AGED ABOUT 40 YEARS NO.310/2, SULTHAN ROAD K.N.PURA EXTENSION MYSORE-570 019.
2. MOHAMMAD AKBAR S/O MOHAMMAD ABBAS AGED ABOUT 42 YEARS NO.1288, GUNDLUPET-1 CHAMARAJANAGAR DISTRICT PIN-571 111 ... RESPONDENTS (SERVICE OF NOTICE TO R1 & R2 IS HELD SUFFICIENT V/O DTD 04/07/16) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 7.9.2012 PASSED BY THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE IN EX.PET. NO.531/2012 VIDE ANNEXURE-A & REVERSE THE FINDINGS AND DIRECT THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE TO CONSIDER THE EX.PET. NO.531/2012 ON MERITS AND PASS APPROPRIATE ORDERS FOR RECOVERY OF THE AWARD AMOUNT IN WRIT PETITION NO.28404/2013 BETWEEN M/S. SRIRAM TRANSPORT FINANCE CO LTD NO.133, SECOND FLOOR SHIKA TOWERS, RAMA VILAS ROAD DEVARAJ MOHALLA MYSORE - 570 024 REPRESENTED BY ITS MANAGER (LEGAL) M R MADHUSUDHAN S/O R K MANAVI AGED ABOUT 48 YEARS ... PETITIONER (BY SRI.M. J. ALVA, ADV.) AND 1. HASSAN SHARIFF AGED ABOUT 39 YEARS S/O MAKBUL SHARIFF NO.211, BELAVATHA GRAMA 6TH CROSS, KESARE MYSORE 570 007 2. SYED ASIFULLA AGED ABOUT 40 YEARS S/O SYED HABIB NO.927, PULAKESHI ROAD LASHKAR MOHALLA MYSORE 570 00 ... RESPONDENTS (NOTICE TO R2 IS HELD SUFFICIENT V/O DATED:04/07/16, NOTICE TO R1 IS HELD SUFFICIENT V/O 13.06.2018) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 7.9.2012 PASSED BY THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE IN EX. PET. NO.530/2012 VIDE ANNEXURE-A & REVERSE THE FINDINGS AND DIRECT THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE TO CONSIDER THE EX.PET. NO.530/2012 ON MERITS AND PASS APPROPRIATE ORDERS FOR RECOVERY OF THE AWARD AMOUNT.
IN WRIT PETITION NO.28405/2013 BETWEEN M/S. SRIRAM TRANSPORT FINANCE CO LTD NO.133, SECOND FLOOR SHIKA TOWERS, RAMA VILAS ROAD DEVARAJ MOHALLA MYSORE-570024 REPRESENTED BY ITS MANAGER (LEGAL) M R MADHUSUDHAN S/O R K MANAVI AGED ABOUT 48 YEARS NO.29/A, K.H.ROAD BENGALURU-560027.
... PETITIONER (BY SRI.M.J.ALVA,ADV.) AND 1. M SHASHIKALA W/O MADHUSUDAN PENJAYATHA AGED ABOUT 39 YEARS NO.25/2, BASAVANAGUDI BLOCK NANJANGUDU MYSORE DISTRICT-571301 2. N B RAJASHEKAR S/O BASAVARAJU AGED ABOUT 42 YEARS NO.5245, K H B COLONY NANJANGUDU MYSORE DISTRICT PIN-571301 ... RESPONDENTS (R1 & R2 ARE SERVED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 11.9.2012 PASSED BY THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE IN EX. PET. NO.420/2012 VIDE ANNEXURE-A & REVERSE THE FINDINGS AND DIRECT THE LEARNED PRINCIPAL DISTRICT JUDGE, MYSORE TO CONSIDER THE EX.PET. NO.420/2012 ON MERITS AND PASS APPROPRIATE ORDERS FOR RECOVERY OF THE AWARD AMOUNT.
*** THESE WRIT PETITIONS COMING ON FOR PRELIMINARY HEARING “B” GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R W.P.No.28402/2013, W.P.No.28403/2013 and W.P.No.28404/2013 are directed against the order dated 7.9.2012 passed by the learned Principal District Judge, Mysore in Execution Petition Nos.529/2012, 531/2012 and 530/2012 respectively and W.P.No.28405/2013 is directed against the order dated 11.9.2012 passed by the learned Principal District Judge, Mysore in Execution Petition Nos.420/2012, whereby the execution petitions were dismissed on the ground that they are not maintainable.
2. The petitioner is a public limited company duly incorporated and registered under the provisions of the Indian Companies Act having its registered office at Chennai. Respondent No.1 had entered into loan-cum-hypothecation agreement with the petitioner on 15.10.2006 along with and respondent No.2 as his guarantor agreeing to repay the loan amount in monthly installments. The respondents had committed default in the matter or payment of installments. The loan-cum-hypothecation agreement contained Arbitration clause. By resorting to the arbitration clause, the petitioner had filed dispute before the learned sole Arbitrator, Chennai for adjudication of the dispute as recited in the agreement. The learned Arbitrator had taken up the matters and passed the award dated 10.12.2011 in Arbitration Case No.122/2010, award dated 18.10.2011 in Arbitration case No.306/2010, award dated 27.1.2012 in Arbitration Case No.104/2010 and award dated 9.12.2011 in Arbitration Case No.599/2010 respectively. Being aggrieved by the same, the petitioner filed Execution petition Nos.529/2012, 531/2012, 530/2012 and 420/2012. The learned Principal District Judge, Mysore had dismissed the execution petitions filed by the petitioner vide Annexure-A. The operative portion of the order dated 7.9.2012 passed in Execution petition Nos.529/2012, 531/2012 and 530/2012 is extracted hereunder:
“Execution petition is hereby dismissed In the absence of necessary Decree Transfer Certificates, the awards passed by the Arbitrator outside the limits of Mysore District cannot execute the award before this Court and such execution petitions are not maintainable and the execution petitions are accordingly disposed off with liberty to the Decree Holders to move for fresh execution petition after obtaining necessary transfer of award.
No order as to cost.
Original copy is kept in Ex. Petition No.861 of 2011 while copies are kept in connected matters.”
Similar order was passed by the learned Principal District Judge, Mysore on 11.9.2012 in Execution Petition No.420/2012.
3. The learned counsel for the petitioner has relied upon the judgment of the Hon’ble Supreme Court in the case of Sundaram Finance Limited v. Abdul Samad and another (2018 (4) SCJ 315) to contend that enforcement of an award through its execution can be filed anywhere in the country.
4. The Hon’ble Supreme Court in the case of Sundaram Finance (stated supra) has held that enforcement of an award through its execution can be filed anywhere in the country where such decree can be executed and there is no requirement for obtaining a transfer of the decree from the Court which would have jurisdiction over the arbitral proceedings. Paragraph 22 of the judgment is relevant and the same is extracted hereunder:
22. We are, thus, unhesitatingly of the view that the enforcement of an award through its execution can be filed anywhere in the country where such decree can be executed and there is no requirement for obtaining a transfer of the decree from the Court, which would have jurisdiction over the arbitral proceedings.
4. In view of the law laid down by the Hon’ble Supreme Court in the case of Sundaram Finance (stated supra), the execution petitions filed by the petitioner are maintainable before the learned Principal District Judge, Mysore.
5. Hence, the writ petitions are disposed of.
The order dated 7.9.2012 passed by the learned Principal District Judge, Mysore in Execution Petition Nos.529/2012, 531/2012 and 530/2012 and order dated 11.9.2012 passed in Execution Petition Nos.420/2012, are set aside. The matters are restored to the learned Principal District Judge, Mysore. The learned Judge is directed to proceed with the matters after giving notice to the respective parties.
Sd/- JUDGE DM