- 1 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF MARCH, 2025 PRESENT THE HON'BLE MR JUSTICE V KAMESWAR RAO AND THE HON'BLE MR JUSTICE T.M.NADAF COMMERCIAL APPEAL NO. 111 OF 2022 BETWEEN: 1. PUPIL TREE FOUNDATION, A REGISTERED TRUST, HAVING ITS REGISTERED OFFICE AT 4/5, ANANTAPUR ROAD PATELNAGAR, BALLARI-583 101. 2. MR PRABHU JAHAGIRDAR, AGED ABOUT 50 YEARS, S/O SRI LINGARAJ, BHUPAL JAHAGIRDAR, CO PUPIL TREE SCHOOL, TALUR ROAD, SRIDHARAGADDA POST, BALLARI-583 103. 3. MRS SUCHARITA SRIRAM JAHAGIRDAR, AGED ABOUT 47 YEARS, W/O MR PRABHU JAHAGIRDAR, CO PUPIL TREE SCHOOL, TALUR ROAD, SRIDHARAGADDA POST, BALLARI-583 103. …APPELLANTS (BY MS. ARUSHI DUBE, ADVOCATE FOR SRI. ADITYA NARAYAN, ADVOCATE) Digitally signed by K G RENUKAMBA Location: High Court of Karnataka - 2 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 AND: PEARSON INDIA EDUCATION SERVICES PRIVATE LIMITED, (FORMERLY: PEARSON EDUCATION SERVICES PRIVATE LIMITED) A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT 1956, HAVING ITS OFFICE AT GROUND FLOOR, DIVYASREE CHAMBERS, ”A” WING, NO.11, O’SHAUGHNESSY ROAD, LANGFORD TOWN, BENGALURU-25. …RESPONDENT (BY SRI. YASHODHAR, ADVOCATE FOR SRI. AJAY J NANDALIKE, ADVOCATE FOR C/R) THIS APPEAL IS FILED UNDER SECTION 13(1A) OF THE COMMERCIAL COURTS ACT, 2015 AND RULE 11 OF THE HIGH COURT OF KARNATAKA ARBITRATION (PROCEEDINGS BEFORE THE COURTS) RULES, 2001, R/W SECTION 37 OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO ALLOW THIS APPEAL, SET ASIDE THE IMPUGNED JUDGMENT DATED 04/01/2022 PASSED BY THE HON'BLE LXXXVIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE (EXCLUSIVE COMMERCIAL COURT) (CCH 89) IN COM.A.P.NO. 33/2020 AND CONSEQUENTLY, SET ASIDE ARBITRAL AWARD DATED 30/11/2019, PASSED BY THE SOLE ARBITRATOR (ANNEXURE-D) TO THE EXTENT THAT IT IS AGAINST THE APPELLANT. THIS APPEAL COMING ON FOR ORDERS THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE V KAMESWAR RAO and HON'BLE MR JUSTICE T.M.NADAF - 3 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 ORAL JUDGMENT (PER: HON'BLE MR JUSTICE V KAMESWAR RAO) The parties have filed a joint memo of settlement, dated 25.02.2025. The settlement has been signed on behalf of Appellant No.1 and by appellant no.2 and 3 and on behalf of respondents and also by their respective counsel. Paragraph Nos. 3 to 8 of the settlement reads as under:" “3. Vide Order dated 13.10.2022, this Hon’ble Court was pleased to stay the operation of the aforesaid Arbitral Award in the following terms: “I.A. 1/2022 is allowed, subject to appellant depositing a sum of Rs.3,00,00,000/- Crores (Rupees Three Crores) before this Court within eight weeks." 4. Pursuant to the said Order, the Appellants deposited INR 3,00,00,000 before this Hon'ble Court by way of Demand Draft bearing No. 584007 dated 06.12.2022 drawn on Axis Bank, Bellari branch. 5. It is submitted that thereafter, the Parties entered into mutual - 4 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 discussions and negotiations pursuant to which they have now resolved the dispute between them amicably and recorded the terms of the settlement in a Settlement Agreement dated 10.01.2025. True copy of the Settlement Agreement is produced herewith and marked as Document No.1. 6. The salient terms of the Settlement Agreement are as follows: "1. The Trust, on a without prejudice and no-admissions basis, agrees that in order to arrive at settlement of pending disputes between the Parties which arose out of the Services Agreement, it shall pay a sum of INR 4,50,00,000 (Indian Rupees Four Crores and Fifty Lakhs Only) to PIESPL as a Settlement Amount. 2. The Second Party shall pay the Settlement Amount as defined in Schedule 1 of this Settlement Agreement. ….. 4. Immediately upon execution of the Settlement Agreement, the Parties jointly shall prefer an application before the Hon'ble Courts adjudicating the disputes in Proceeding No. 1 and Proceeding No. 2 respectively seeking withdrawal - 5 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 of Proceeding No. 1 and Proceeding No. 2 respectively. Further, the Parties shall be at the liberty to seek appropriate directions from the Hon'ble Courts to continue/ revive / reinstate Proceeding No. 1 and/or Proceeding No. 2 in an event of breach of the terms of the Settlement Agreement by either party.” 7. In view of the above terms, the Parties are filing the instant memo praying that this Hon'ble Court may be pleased to dispose of the above Appeal as withdrawn with liberty to revive the same in terms of the Settlement Agreement if the need arises. 8. Further, in view of the withdrawal of the above Appeal, the Parties pray that this Hon'ble Court may be pleased to direct the Registry to release INR 3,00,00,000 deposited by the Appellants before this Hon'ble Court pursuant to the Order dated 13.10.2022 along with interest accrued thereon to the Respondent as per Clause 5 of the Settlement Agreement. The Appellants are moving a formal Application seeking directions to release the said sum. - 6 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 Therefore, in view of the above, the Parties hereto humbly pray that this Hon'ble Court may be pleased to take this Memo of Settlement on record and dispose of the above Appeal by giving directions as mentioned in paragraph no.7 and 8 of the instant Memo of Settlement.” 2. The learned counsel for the parties have also referred to I.A. No. 1/2025, which is an application filed by the appellants with the following prayer: “For the reasons stated in the accompanying affidavit, it is prayed that this Hon’ble Court may be pleased to release INR 3,00,00,000 deposited by the Appellants before this Hon’ble Court vide Demand Draft bearing No.584007 dated 06.12.2022 drawn on Axix Bank, Bellari branch, pursuant to Order dated 13.10.2022 of this Hon’ble Court, along with interest accrued thereon, to Respondent No.1 (Pearson India Education Services Private Limited) in the interest of justice and equity.” 3. It is stated that, the amount of Rs.3,00,00,000/- (Rupees Three Crores only) (along with the interest accrued - 7 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 thereon), deposited by the appellants, be released to the sole respondent, M/s.Pearson India Education Services Private Limited. 4. We find that, the Registry has in its office note dated 06.03.2025 has referred to the memo filed by the appellants along with D.D.No.584007 dated 06.12.2022 for a sum of Rs.3,00,00,000/- (Rupees Three Crores only) drawn on Axis Bank Ltd., Bellary Branch and the same has been kept in a fixed deposit. 5. If that be so, the joint memo of settlement filed on 25.02.2025 along with the settlement agreement dated 10.01.2025 are taken on record. 6. The application(s) is disposed of by directing the Registry to release the amount of Rs.3,00,00,000/-, as deposited by the appellants in favour of the respondent M/s.Pearson India Education Services Private Limited along with the accrued interest thereon. 7. The release shall be made in the presence of the counsel for the appellants and the respondent, to the - 8 - NC: 2025:KHC:9755-DB COMAP No. 111 of 2022 representative of the respondent, upon identification and after taking such documents, as are relevant in that regard. 8. Learned counsel for the parties state that, the parties shall be bound by the terms of the settlement. The submission is taken on record. 9. In view of the above, the appeal is disposed of, with liberty to revive the same in terms of the settlement agreement, if the need arises. 10. Pending I.A.Nos.1/24 do not survive for consideration and stands disposed of. Sd/- (V KAMESWAR RAO) JUDGE Sd/- (T.M.NADAF) JUDGE SMC/List No.: 1 Sl No.: 9