- 1 - HC-KAR NC: 2025:KHC:24393 WP No. 6181 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 6181 OF 2025 (GM-CPC) BETWEEN: M/S. LEMON PEPPER HOSPITALITY PVT. LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013, HAVING ITS REGISTERED OFFICE AT NO. 30, OLD NO.1, SECOND FLOOR, CHURCH STREET, CIVIL STATION, BENGALURU – 560 001 REPRESENTED BY ITS DIRECTOR MR. SHIKHA KUMARI, D/O MR. DASHARAT RAM, AGED ABOUT 41 YEARS. …PETITIONER (BY SRI. PRADEEP KUMAR J., ADVOCATE) AND: 1. M/S. PLEASANT VALLEY DEVELOPMENT PVT. LTD., A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 HAVING ITS OFFICE AT NO. 102, EMBASSY PALACE, CUNNINGHAM ROAD, BENGALURU – 560 052. 2. M/S. NEW DECCAN INTERNATIONAL A PROPRIETORSHIP CONCERN Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:24393 WP No. 6181 of 2025 OFFICE AT NO.42, 2ND MAIN ROAD, DOLLARS LAYOUT, 4TH PHASE, J.P.NAGAR, BENGALURU – 560 078. REPRESENTED BY ITS PROPRIETOR MR. H.P.RAVINDRA DAS (MAJOR). …RESPONDENTS (BY SRI S.GURU PRASANNA, ADVOCATE FOR R1; NOTICE TO R2 IS DISPENSED WITH VIDE ORDER DATED 04.03.2025) THIS W.P. IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER PASSED BY THE LXXXV ADDITIONAL CITY CIVIL AND SESSIONS JUDGE AT BANGALORE (COMMERCIAL COURT) (CCH-86) IN COMMERCIAL OS NO. 418 OF 2024 ON I.A.NO. 9 OF 2024 DTD. 20.12.2024 PRODUCED AT ANNX-L. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this Court calling in question an order dated 20.12.2024 by which the petitioner is placed ex parte and the proceedings are now proceeding further before the concerned Court. 2. Heard Sri.Pradeep Kumar J., learned counsel appearing for the petitioner and Sri.S.Guru Prasanna, learned - 3 - HC-KAR NC: 2025:KHC:24393 WP No. 6181 of 2025 counsel appearing for respondent No.1 and have perused the material on record. 3. The petitioner is said to be the tenant in a premises owned by respondent No.1-plaintiff. The Assignment Agreement between the petitioner and the plaintiff comes to be executed on 2.4.2016. Owing to serious default in payment of rent, the plaintiff institutes a suit in Commercial O.S.No.418/2024. It is said that on 1.4.2024, summons were issued and the postal shara indicated that the addressee has moved to a different address. Then paper publication was sought and was issued by the concerned Court as a substituted service. The paper publication comes to be issued, even then the petitioner does not represent before the concerned Court, while the defendants do not represent before the concerned Court. The proceedings are moved further placing the petitioner ex parte. It is that, that is called in question before the concerned Court. The learned counsel Sri.Pradeep Kumar appearing for the petitioner submits that the order passed by the concerned Court is on blatant statutory violation as the petitioner-defendant No.2 has a right to be heard in the matter. - 4 - HC-KAR NC: 2025:KHC:24393 WP No. 6181 of 2025 Admittedly, he has not been heard. Therefore, the order should be set aside and the petitioner be given an opportunity to submit his defense. 4. Per contra, the learned counsel appearing for the respondent would submit that the petitioner was very well aware of the proceedings that are instituted by the respondent- plaintiff as he has been under serious default of payment of rent and had participated in the Pre-Institution Mediation proceedings [PIM] before the Commercial Court as obtaining under section 12A of the Commercial Courts Act, 2015. Therefore, he cannot feign ignorance of the suit being filed for the purpose for which it is filed. Be those submissions as they are, the issue now is that the petitioner is not heard in the matter and the proceedings before the concerned Court is fast progressing, is the submission. 5. In the light of the said submission, I deem it appropriate to permit the petitioner to be heard in the matter, not without any condition. Learned counsel for the plaintiff submits that the petitioner is in serious default of payment of - 5 - HC-KAR NC: 2025:KHC:24393 WP No. 6181 of 2025 rent and the arrears today is close to Rs.1.6 crores. Learned counsel for the petitioner submits that he has a counter claim against the plaintiff as he has invested Rs.2.66 crores in a unit that does not even have an Occupancy Certificate and the indemnity clause would kick in, in such statutory breach, is his submission. Therefore, to balance the right of the petitioner and the respondent and also to permit the petitioner to have an opportunity of hearing before the concerned Court, I deem it appropriate to direct the petitioner to deposit 40% of the arrears of rent before the concerned Court. The concerned Court shall afford all opportunities to the petitioner to submit his defense. Learned counsel for the plaintiff submits that the petitioner be directed to cooperate with the proceedings for expeditious disposal of the same. 6. In the light of these submissions, I deem it appropriate to dispose the petition with the following: ORDER [i] The order dated 20.12.2024 passed by the LXXXV Additional City Civil and Sessions Judge at Bangalore - 6 - HC-KAR NC: 2025:KHC:24393 WP No. 6181 of 2025 (Commercial Court) (CCH-86) in Commercial O.S.No.418/ 2024 on I.A.No.IX of 2024 stands quashed. [ii] Petitioner-defendant No.2 is permitted to put up his defense and shall have liberty to all opportunity thereof. He shall deposit 40% of the arrears, which is now projected in the plaint, before the concerned Court within *6 weeks from today. [iii] Ordered accordingly. [iv] In the light of the issue between the two being one of tenancy and the arrears of rents that is to be paid, the concerned Court shall endeavor to expeditiously dispose the matter for which the parties to the lis shall cooperate in the proceedings. Sd/- (M.NAGAPRASANNA) JUDGE CBC List No.: 1 Sl No.: 27 * Corrected vide chamber order dated 18.07.2025