Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 26, Cited by 0]

Bangalore District Court

Pardhanani Chatrabhuj Bassarmal vs M/S Italix Living Spaces Private Ltd on 22 December, 2021

                            1
                                        Com.A.A.No.120/2021


 In the Court of LXXXIV Addl. City Civil and Sessions
     Judge (CCH-85 Commercial Court), Bengaluru

       Dated this the 22nd day of December 2021

    Present: Smt.H.R.Radha B.A.L., LL.M.
             LXXXIV Addl. City Civil and Sessions Judge,
             (CCH-85 Commercial Court) Bengaluru

                  Com.A.A.No.120/2021

Petitioner:    Pardhanani Chatrabhuj Bassarmal, S/o Late
               Bassarmal       Hotchand      Pardhanani,
               Permanently R/at Flat No.1504, AI Mas
               Towers, Dubai Marina, PO Box 5418, Dubai,
               UAE and Bangalore Residing at No.46/3,
               Fair Field Layout, Race Course road,
               Bangalore-560 001, by his Power of
               Attorney Holder Mr. M.Sahadeva Reddy,
               aged about 67 years S/o Late Sri.M.Basi
               Reddy, R/at no.185, Amar Jyothi Layout, 5 th
               Main, Domlur Inner Ring Road, Bangalore
               - 560 071

                    (By Sri.B.S.Sathyananda, Adv.)

                            Vs

Respondents: 1. M/s Italix Living Spaces Private Ltd.,
             (CIN:U45500KA2018PTC115146),                A
             company       incorporated      under     the
             provisions of the Companies Act, 2013
             having its registered office at No.38, Ulsoor
             Road,    Bengaluru      -    560042,     duly
             represented by its Directors/Authorized
             signatories: 2, 3 and 4
                               2
                                         Com.A.A.No.120/2021



                 2.    Mr.    Vasudevan    Sathyamoorthy,
                 (DIN:00022732), R/at No.32, Sanoh, Prime
                 Street, Richmond Road, Bengaluru-560025

                 3.    Mr.     Durbhakula     Vamsi     Sai
                 (DIN:08094716), working for gain at :
                 No.38, Ulsoor Road, Bengaluru - 560042

                 4. Mr. Sumit Chatterjee, Authorised
                 Signatory, M/s Italix Living Spaces Private
                 Ltd., No.38, Ulsoor Road, Bengaluru -
                 560042

                  (R1 to R3 by Sri.M.Shyamsundar, Adv.
                                    &
                      R4 by Sri.Rohan Tigadi, Adv.)


Date of institution                   22-07-2021


Nature of the petition        U/s 9 of the Arbitration and
                                    Conciliation Act
Date on which judgment
pronounced                            22-12-2021


Total duration               Years      Months       Days


                              00          05          00




                  LXXXIV Addl. City Civil and Sessions Judge,
                   (CCH-85 Commercial Court) Bengaluru
                                3
                                          Com.A.A.No.120/2021


                         ORDERS


     In this petition U/s 9(1)(ii)(b) and (e) of the Arbitration

and Conciliation Act ('The Act' for short) the petitioner has

sought    for a direction to the respondents to deposit

Rs.30,48,09,184/- in cash/DD or to furnish Bank Guarantee,

pending adjudication of the arbitration proceedings.


2.   The petitioner's case in brief is that he had entered into

registered sale agreement dated 20.04.2016 and 07.12.2016

with M/s Pebble Bay Developers (P) Ltd., Mumbai ('Pebble

Bay' for short) by paying Rs.151,27,81,768/-. When Pebble

Bay failed to complete the construction in time and tried to

alienate the property, he filed Com.AA.28/2019, but withdrew

the same on the assurance of the respondents to complete

the construction in time by taking over the project. He

entered into a fresh sale agreement in respect of office units

in 11, 12 14, and 15 th floor of Ozone Chambers. The

respondents acknowledged payment of Rs.151,27,81,768/- as

advance   to   Pebble Bay out      of total   consideration   of

Rs.158,58,14,343/- and that he had to pay the balance of

Rs.6,30,32,575/- at the time execution of absolute sale deed.
                                  4
                                            Com.A.A.No.120/2021


2(a).       That   he     entered    into   another      registered

agreement of sale dated 09.05.2019 with the respondents in

respect of the office units in 9, 10, 12A and 16 th floor of

Ozone Chambers for a consideration of Rs.157,00,09,859/-

and paid advance of Rs.49,05,71,631/-; and the construction

had to be completed in 24 months with 06 months grace

period. The respondents had undertaken to pay interest at

11% p.a. at quarterly basis on the advance sale consideration

till obtaining occupancy certificate. The same works out to

Rs.3,64,01,312/-, after deducting TDS of Rs.52,00,187/-. Out

of the ten quarters from 01.01.2019 to 30.06.2021, the

respondents have paid the amount for the first three

quarters. But TDS amount is not paid for the third quarter. For

the remaining seven quarters, the           respondents issued

cheques assuring that the same would be honoured on

presentation.


2(b).       That   the   1st   respondent   availed   short     term

financial   assistance   of    Rs.5,00,00,000/-   from    him    by

executing loan agreement, personal guarantee and on

demand promissory note on 17.06.2020 and issued cheque
                                       5
                                                   Com.A.A.No.120/2021


dated 27.04.2021 signed by the 2nd respondent, towards

discharge of the liability and also assured to pay interest on

the said amount. However, on presentation, the cheques

bearing Nos.911905 to 911907, 916751, 082914, 082915,

000326 and 916752 were dishonoured for want of sufficient

funds in the 1st respondent's account. He has got issued

statutory      notice   calling    upon    the    respondents   to   pay

Rs.26,84,07,872/- towards the cheques, In spite of service of

the same, the respondents have failed in their commitment

and he apprehends that they may run away from the

jurisdiction      of    the       court    abandoning     the    entire

project/construction activity. In such an event it would

difficult to recover the admitted debt.


3.    The respondents 1 to 3 have filed common statement of

objections contending that the petition is not maintainable.

The   petitioner        entered     into   sale    agreements    dated

20.04.2016 and 07.12.2016 with Pebble Bay to purchase the

office units in 11th and 12th floor of Raheja Chambers for

Rs.83,54,06,250/- and the office chambers on 14 th and 15th

floor for Rs.74,04,08,093/-. Pebble Bay sold the entire
                               6
                                         Com.A.A.No.120/2021


property in favour of the 1st respondent under registered sale

deed dated 08.05.2019; and Raheja Chambers came to be

renamed    as   Ozone   Chambers.   There   was   a   tripartite

agreement amongst the petitioner, the 1st respondent and

Pebble Bay on 09.05.2019 and Pebble Bay transferred

Rs.151,26,81,768.50/- which was received from the petitioner

to the 1st respondent; and the balance sale consideration of

Rs.6,30,32,575/- was payable at the time of registration of

the sale deed. The petitioner entered into another agreement

of sale dated 06.12.2019 with the 1st respondent to purchase

office space in 9, 10, 12A and 16 th floor in Ozone Chambers

for Rs.157,00,09,859/-. Except a sum of Rs.30,00,000/-

towards taxes, the petitioner has neglected and failed to

remit the amount under the agreement dated 06.12.2019

and thereby contributed to the delay in completion of the

construction.


3(a).     Due Covid-19 pandemic there was nationwide lock

down and the construction activity was totally prohibited by

notification dated 24.03.2020 issued under the National

Disaster Management Act. Owing to uncertainty, labours
                                7
                                           Com.A.A.No.120/2021


migrated to their villages. Also there was no movement of

raw     materials.   Subsequently   construction   activity   was

permitted only if workers were available at construction site

and bringing them from outside was prohibited. During Covid-

19 second waver the Govt. of Karnataka imposed lock down

in May and June 2021 and this further delayed the project.

Karnataka RERA, taking note of these events suo motu

extended the date for completion of Ozone Chambers till

30.09.2020 initially and then till 30.06.2021. On 27.08.2021

the Govt. has instructed RERA to renew registration until

01.10.2021.


3(b).        That the petitioner issued legal notice dated

14.06.2021 demanding Rs.26,84,07,872/- and in the event of

failure, to refer the dispute to arbitration, but no steps are

taken in this direction till date. The loan documents

pertaining to Rs.5 crores do not contain arbitration clause. All

the respondents are not parties to the same and the petition

is bad for mis joinder of parties. This court has no jurisdiction

to entertain the petition, as the subject matter of the dispute

is not commercial in nature and the property is not
                                    8
                                             Com.A.A.No.120/2021


exclusively    used   in   trade   or   commercial   activity.   The

agreement of sale is inadequately stamped and no interim

relief can be granted in favour of the petitioner, based on the

same. If the interim relief were to be granted as prayed, it

would amount to virtually allowing the claim without a full

fledged adjudication by way of arbitration. The claim for

interest at 11% p.a. from 01.01.2019 is premature.


3(c).         That the Clauses 1.2, 1.6 and 1.8 of the sale

agreement dated 09.05.2019 provide for 24 months time for

delivery of possession, subject to variation on account of

force majeure or acts of god or Govt. delays and other

reasons beyond the control of the respondents; and the

petitioner is not entitled to claim any damages/loss on the

ground of delay. The respondents are entitled to a grace

period of six months from the date of delivery for completion

of its obligation and the petitioner is entitled to interest at

11% p.a. on the sale consideration, from 01.01.2019 till

obtaining of occupancy certificate. The interest is not payable

on quarterly basis; and the petitioner has failed to make out a

case for deposit of money. The 1 st respondent has undertaken
                                   9
                                                  Com.A.A.No.120/2021


development of several residential and office complexes in

Bengaluru and the projects are ongoing. As such, there is no

basis for the petitioner's apprehension. The petitioner himself

is liable to pay about Rs.100 crores to the 1 st respondent.

Rs.3,614,01,312/- was paid to the petitioner for March, June

and September 2019 quarters to assist the petitioner to wade

through financial commitments and the 1 st respondent is

entitled for its refund. The cheques were issued due to

inadvertence of the finance team; there is no legally

dischargable debt due to the petitioner and the cheques were

never meant to be presented.


4.   The 4th respondent has not filed statement of objections

and his IA seeking deletion from the proceedings came to be

rejected after contest by order dated 12.11.2021.


5.   Heard    the    learned      counsel     for     the   petitioner,

respondents 1 to 3 and the 4th respondent.


6.   The points that arise for my consideration are:

           1. Whether the petitioner has made
           out   a   case   for       directing     the
           respondents            to         deposit
                                  10
                                              Com.A.A.No.120/2021


            Rs.30,48,09,184/-     or   to   furnish
            bank guarantee, as prayed?

            2. What order?

7.   My findings on the above points are :

            Point No.1: In the Negative
            Point No.2: As per the final order for following


                           REASONS

8. Point No.1: There is no dispute that Pebble Bay

formulated a scheme for development and sale of multi

storied building      called Raheja Chambers in Roopena

Agrahara,   Bengaluru;    the    petitioner   entered   into   sale

agreements dated 20.04.2016 and 07.12.2016 to purchase

office space on 11th and 12th floor, and 14th and 15th floors

for Rs.83,54,06,250/- and Rs.74,04,08,093/- respectively and

paid Rs.151,26,81,768/- in all as advance to Pebble Bay. The

balance of Rs.6,30,32,575/- was payable at the time of

registration of the sale deed.


9.   After the 1st respondent took over the project from

Pebble Bay, Raheja Chambers came to be rechristened as

Ozone Chambers and by superceding the earlier agreements,
                                 11
                                                Com.A.A.No.120/2021


the petitioner, 1st respondent and Pebble Bay entered into

agreement dated 09.05.2019 in respect of office space in the

above floors and the 1 st respondent acknowledged that the

petitioner was only to pay Rs.6,30,32,275/- at the time of

registration of the sale deed. Further, the petitioner and the

1st respondent entered into another sale agreement dated

06.12.2019 in respect of office space on 9 th, 10th, 12A and

16th floors of Ozone Chambers for Rs.157,00,09,859/-.


10.   While the petitioner claims to have paid advance of

Rs.49,05,71,631/- under agreement dated 06.12.2019, the

respondents 1 to 3 contend that only a sum f Rs.30,00,000/-

was paid in respect of this transaction. Even the recitals in

the 2nd agreement speak to that effect and accordingly it is

recited   that   the   petitioner    has   to   pay   balance   sale

consideration of Rs.127,00,09,859/- to the 1 st respondent at

the time of registration of the sale deed in respect of the

office space on 9th, 10th, 12A and 16th floors of Ozone

Chambers.


11. The respondents 1 to 3 challenge the maintainability of

the petition contending that there is nothing in the petition to
                                12
                                           Com.A.A.No.120/2021


say that it is a commercial dispute and the subject matter is

not exclusively used in trade or commerce. This court is not

a Principal Civil Court of Original Jurisdiction and therefore

cannot entertain the petition U/s 9 of the Act, in view of

Sec.2(e) of the Act, read with Section 10 of the Commercial

Courts Act. Since A.A.28/2019 was withdrawn without liberty

to file a fresh petition, this petition is barred by constructive

res judicata and Order II Rule 2 CPC.


12.   It is urged on behalf of respondents 1 to 3 that if there

is a debt and the corporate entity defaults in payment of the

same, of Insolvency and Bankruptcy Code, 2016 ('IBC code'

for short) applies and Civil Court will have no jurisdiction in

view of Sections 5(6) to 5(8), 3(6), 3(10) to 3(12), 6, 7 and

63 of IBC Code. If the respondents are directed to deposit of

the amount, the same would prevent them from defending

the proceedings U/s 138 of NI Act.


13.   The learned counsel for the respondents 1 to 3 argues

that the relief sought is barred U/s 41(d), 41(ha) and 41(h)

of the Specific Relief Act, as the same relates to an

infrastructure project and efficacious remedy is available
                                13
                                            Com.A.A.No.120/2021


before the NCLT.


14.   The judgment in Ambalal Sarabhai Enterprises Ltd.

Vs K.S.Infraspace LLP & Anr. reported in (2020) 15 SCC

585; M/s National Highway Authority of India Vs M/s

B.Seenaiah & Co.(Projects) Ltd. [FMA 254 of 2012 dated

13.03.2015]; and N.N.Global Marcantile Pvt. Ltd. Vs

Indo Unique Flame Ltd. reported in (2021) 4 SCC 379 are

relied upon in the context of the above arguments.


15.   The recitals in the agreements entered into by the

petitioner with the respondents describe Ozone Chambers as

a commercial building. The petitioner has admittedly has

entered into agreement to purchase the office spaces in the

said building; and as rightly pointed out by the learned

counsel for the petitioner the office spaces are described

therein as commercial units. Therefore I am of the considered

opinion that the ratio in Ambalal Sarabhai's case cannot

come to the respondents' aid.


16.   Sec.2(e) of the Act defines 'court' to mean and include

a Principal Civil Court in a district. It excludes any Civil Court
                                  14
                                             Com.A.A.No.120/2021


inferior to such principal civil court or a court of small causes,

from exercising jurisdiction or entertaining a petition or an

application under the Act. But, by virtue of Section 14 of the

Karnataka Civil Courts Act, district courts are deemed to be

the Principal Civil Courts of Original Jurisdiction.


17.   Further, the question whether Additional City Civil

Courts in Bengaluru are inferior to the Principal Civil Court

and if the City Civil Courts in Bengaluru are Principal Civil

Courts of original jurisdiction has been exhaustively dealt by

our Hon'ble High Court in the case of Valliappa Software

Technological Park (P) Ltd. Vs C.Sundaram & Ors.

reported in ILR 2002 Kar 1476.


18.   Referring to Sec.2(e), 9, 42 of the Act and Sections 2(3),

2(4), 2(6), 3(1), 3(2), 3(3)(a), 6(1) and (2) of the Bangalore

City Civil Courts Act, 1979 it is held in Valliappa Software

Technological Park Pvt. Ltd., cited supra that:


            "In view of the explicit language
            employed by the legislature in the
            Bangalore     City    Civil   Courts       Act,
            1979, the intention has been made
                                15
                                           Com.A.A.No.120/2021


           clear that all the City Civil Courts
           constituted       under   the    Act    are
           deemed to be Principal Civil Courts
           of     Original      Jurisdiction.     The
           definition of Judge makes it clear
           that there is not difference between
           Principal City Civil Judge and City
           Civil Judge of the City Civil Court."



19.   In para 12 of the above judgment it is clarified that

Additional City Civil Courts are not subordinate or inferior to

Principal City Civil Court. Senior most judge amongst the City

Civil Judges is appointed as Principal City Civil Judge for

making arrangement and distribution of work of the City Civil

Court among the judges thereof. Each of the City Civil judges

have the jurisdiction to receive, to try and dispose of all suits

and other proceedings of a civil nature and arising within the

city of Bengaluru except the suits or proceedings which are

cognizable by the High Court or the Court of Small Causes.

Therefore, the judgment of the Hon'ble High Court of Calcutta

in National Highway Authority of India case, is also of no avail

to the respondents.
                               16
                                           Com.A.A.No.120/2021


20.   As pointed out by the petitioner's counsel, there is no

plea in the respondents' statement of objections with regard

to the petition being hit by the principles of constructive res

judicata or by Order II Rule 2 CPC. Admittedly A.A.28/2019

filed against Pebble Bay was withdrawn by the petitioner and

there was no adjudication by the court on merits. Under such

circumstances, Explanation IV to Section 11 CPC or Order II

Rule 2 CPC cannot be pressed into service.


21.   The question of invoking the jurisdiction of NCLT arises

if there is a debt and the corporate entity fails to pay the

same and the financial creditor U/s 5(7) or creditor U/s 3(10)

of the IBC Code seek to recover the same alleging that the

corporate entity has become a bankrupt. In this case, there is

no such averments in the petition and Section 6 of IBC Code

provides that a financial creditor may initiate insolvency

resolution proceedings before NCLT U/s 7, when the default

occurs and it is not mandatory for a financial creditor to raise

a dispute before NCLT, as sought to be argued.


22.   The petitioner is since not praying for an order of

temporary injunction against the respondents to stall the
                                   17
                                                  Com.A.A.No.120/2021


construction activity of an infrastructure project, Section

41(h) or (ha) of the Specific Relief Act cannot be invoked.

That apart, the contention of the respondents that the

petition U/s 9(ii)(b) of the Act for securing the amount in

dispute is analogous to Order XXXVIII Rule 2 CPC, merits no

consideration for the simple reason that the power of the

court U/s 9(ii)(b) of the Act has to be exercised in the interest

of justice and ex debito justitiae.


23.   The Hon'ble High Court of Judicature at Bombay in the

case of National Shipping Company of Saudi Arabia Vs

Sentrans Industries Ltd., Mumbai reported in (2004) 2

Mh.L.J 696, has laid down in clear terms that the power U/s

9(ii)(b) of the Act cannot be restricted by importing the rigour

under the provisions of Order XXXVIII CPC by holding that


        "The      order     U/s        9(ii)(b)    of    the
        Arbitration and Conciliation Act is in
        the nature of interim protection order.
        In special provision of the nature like
        Section 9(ii)(b) excise of power cannot
        be     restricted     by         importing       the
        provisions of Order XXXVIII Rule 5 CPC
        as it is. The legislature while enacting
                                18
                                             Com.A.A.No.120/2021


        Section 9(ii)(b) did not intend to read
        into it. The provisions of Order XXXVIII
        Rule 5 CPC as it is. The procedural
        aspects provided in the code about
        which    the     act   of   1996     is   silent,
        needless    to    say,      when    the    court
        exercises its substantive power under
        the Act of 1996 shall be applicable but
        the   guiding     factor    for    exercise   of
        power U/s 9(ii)(b) as to be whether
        such order deserves to be passed for
        justice to the cause."



24.   Having argued that the stamp duty is paid on the

agreement is insufficient and therefore no relief can be

granted based on the same, the learned counsel for the

respondents concedes that the stamp duty paid is sufficient

and the judgments in N.N.Globla Merchantile Pvt Ltd., Shah

Faesal Vs Union of India reported in (2020) 4 SCC 1 relied

upon by him are not applicable to the case on hand.


25.   The learned counsel for the petitioner strongly argues

that having agreed under sale agreement dated 09.05.2019

to pay 11% interest per annum, if the construction was not
                                  19
                                           Com.A.A.No.120/2021


completed within 24 months from the date of execution of

the agreement, with grace period of 6 months and despite

paying the same on quarterly basis for first three quarters,

the respondents have failed to honour the cheque for the

remaining    seven   quarters.    The   petitioner   apprehends

abandonment of project by the respondents and in such an

event he will not be in a position to recover the amounts due

under the seven cheques.


26.   Per contra, the learned counsel for the respondents 1 to

3 argues that agreement dated 09.05.2019 was entered into

superseding earlier agreements. Sub Clause 1.8 provides for

payment of interest at 11% p.a., but the claim is for quarterly

interest and not the one provided under the above sub

clause. Petition is nothing but a reproduction of the complaint

U/s 138 of NI Act and no case is made out for grant of relief

U/s 9 of the Act.


27.   In reply, the learned counsel for the petitioner argues

that in the absence of any explanation from the respondents

as to why the cheque were issued on the quarterly basis,

inference in favour of the petitioner ought to be drawn and
                               20
                                           Com.A.A.No.120/2021


existence of arbitration clause is sufficient to file a petition

U/s 9 of the Act and the dispute need not actually arise

between the parties.


28.   The   agreement    dated     09.05.2019   is   a   tripartite

agreement between the 1st respondent as the vendor, Pebble

Bay as the confirming party and the petitioner as the

purchaser and it is in respect of 1,72,407 sq.ft carpet area on

11, 12, 14 and 15th floors of Ozone chambers along with 439

covered car parks situated equally at three basement floors

along with proportionate common area.


29.   Sub Clause 1.2 provides that the 1 st respondent had to

produce and permit inspection of all documents, records and

other materials relating to the property; to satisfy about the

absence of any encumbrance, charge etc except the charge

with YES    bank, absence     of pending     litigation/potential

litigation or claims and governmental, environmental or

regulatory action; objection raised by any third party in

response to public notice; obtaining revised sanctioned plan

and associated approvals and to provide final occupancy

certificate and associated completion approvals for the
                                21
                                             Com.A.A.No.120/2021


building, within 24 months from the date of execution of the

agreement with grace period of six months to complete these

conditions precedents.


30.   Under   Sub   Clause    1.6   the   1 st   respondent   had

undertaken to hand over the commercial unit on or before 24

months from the date of agreement, subject to variation on

account of force majeure or acts of god or government delays

and other reasons beyond the respondents' control. As per

sub clause 1.8 of the agreement from the date of delivery,

the 1st respondent shall be entitled to a grace period of six

months for completion of obligations in respect of 11, 12, 14

and 15th floors. During the said period, the petitioner shall not

be entitled for any damages/loss against the 1st respondent

on the ground of delay. However, he will be entitled to

interest at 11% p.a., on the sale consideration paid, from

01.01.2019 till getting occupancy certificate and premises

being fit for commercial operation.


31.   Clause 5 provides for termination of the agreement if

the 1st respondent committed any breach and did not rectify

the same within 30 days of receipt of notice, provided such
                                   22
                                              Com.A.A.No.120/2021


breach affects the 1st respondent's ability to delivery peaceful

possession of 11, 12, 14 and 15 th floors to the petitioner; non

completion of the condition precedents by the target

completion date and associated grace period; insolvency of

1st respondent etc.


32.   The petitioner has produced reply dated 17.08.2021

which goes to show that petitioner was permitted to monitor

the progress and development of the project to ensure that

his payments were duly utilized for the same. Karnataka

RERA extended the target completion date to 30.06.2021 and

granted   further     extension   due   to   prevailing   pandemic

situation. In fact the petitioner himself as written email dated

11.02.2020    to    the   respondents    stating   that   there   is

substantial progress in the construction activity. Thereafter,

every commercial activity as come to a halt due to covid-19

pandemic.


33.   Though it is alleged in the petition that the respondents

are trying to abandon the project and to flee from India, the

learned counsel fairly conceded that the petitioner does not

intend to terminate the contract for non completion of the
                                      23
                                                   Com.A.A.No.120/2021


construction     within     time.    Thus,   it   appears     that    their

apprehension regarding respondents' fleeing from the courts

jurisdiction is without any basis. From the very claim of the

petitioner that he has lent Rs.5 crores to the 1 st respondent,

that too on a pronote, would inforce the argument that the

petitioner continues to repose trust in the respondents.


34.    The special power of attorney is executed by the

petitioner in favour of Mr.M.Sahadeva Reddy authorizing him

to appear on his behalf before all courts, tribunals including

NCLT    in   respect   of    the     matters      covered   under     sale

agreements dated 09.05.2019 and 06.02.2016. As argued by

the    learned    counsel      for    the    petitioner     himself    the

apprehension is with regard to abandonment of project and

not that the respondents become insolvent.


35.    Further, the petition averments at para 13 would make

it clear that the main grievance of the petitioner is dishonour

of seven cheque and he has already initiated proceedings U/s

138 of NI Act. As discussed earlier Sub Clause 1.8 with regard

to payment of interest at 11% p.a. comes into play only after

possession of the office spaces under the two agreements
                                  24
                                                Com.A.A.No.120/2021


are delivered in favour of the petitioner and therefore, the

petition is premature.


36.   The petitioner claims that the respondents are due a

sum of Rs.30,48,09,184/- towards interest for seven quarters

at the rate of Rs.3,64,01,312/- per quarter after deducting

the TDS. But the total amount under the cheques mentioned

in para 10 of the petition comes to Rs.25,48,09,184/-. That

apart, any interim measure U/s 9 of the Act should be in aid

of the final relief. However, granting the interim relief as

prayed would amount to granting the main relief itself

without there being any adjudication by way of arbitration.

Therefore, the point for consideration is answered in the

negative.


37. Point No.2:    In the result, I pass the following:


                              ORDER

The petition U/s 9 of the Arbitration and Conciliation Act is hereby dismissed.

25

Com.A.A.No.120/2021 Issue copy of the order to the petitioner through e-mail as provided U/o XX Rule 1 of CPC if email ID is furnished.

(Dictated to the stenographer, transcribed and typed by her, corrected and then pronounced by me in the open court on this the 22nd day of December 2021) (H.R.Radha) LXXXIV Addl. City Civil and Sessions Judge, (CCH-85 Commercial Court) Bengaluru