- 1 - HC-KAR NC: 2025:KHC:20627-DB COMAP No. 310 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JUNE, 2025 PRESENT THE HON'BLE MR V KAMESWAR RAO, ACTING CHIEF JUSTICE AND THE HON'BLE MR JUSTICE C M JOSHI COMMERCIAL APPEAL NO. 310 OF 2025 BETWEEN: 1. CHIRAJ RAJESH PUGALIA, S/O MR. RAJESH MOHANLAL PUGALIA, AGED ABOUT 26 YEARS, RESIDING AT FLAT NO. 7B, MB TOWN, MAMTA VIHAR, CHANDRA NAGAR, RING ROAD, BHANDARA ROAD, BHANDEWADI, NAGPUR-440 008. PRESENTLY AT BENGALURU. 2. MATAR MEDIA LLP, A LIMITED LIABILITY PARTNERSHIP, AS PER SECTION 23(4) OF THE LIMITED LIABILITY PARTNERSHIP ACT, 2008, REP. BY ITS AUTHORIZED SIGNATORY, MR. CHIRAG RAJESH PUGALIA, HAVING ITS OFFICE AT: IWWA BUILDING, 7TH MAIN ROAD, STAGE 2, BTM LAYOUT, BENGALURU, KARNATAKA-560 076. …APPELLANTS (BY SRI SHISHIRA AMARNATH, ADVOCATE) AND: DIVYAM AMIT GOENKA, Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:20627-DB COMAP No. 310 of 2025 S/O OF MR. KESHAV GOENKA, AGED ABOUT 26 YEARS, R/AT 103, SVS ELITE, EREKERE, 7TH PHASE J P NAGAR, BENGALURU-560 076. …RESPONDENT (BY MR. HIMANSHU SHEMBEKAR, ADVOCATE FOR MS. DEEPIKA HUNGENAHALLY, ADVOCATE) THIS COMAP/COMMERCIAL APPEAL IS FILED UNDER SEC.13(1 A) OF THE COMMERCIAL COURTS ACT, PRAYING TO SETTING ASIDE THE ORDER DATED 05.03.2025 PASSED BY THE LXXXVII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE (CCH 88), COMMERCIAL COURT, BENGALURU IN COM.A.A NO. 119/2025 ANNEXURE G. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR V KAMESWAR RAO, ACTING CHIEF JUSTICE and HON'BLE MR JUSTICE C M JOSHI ORAL JUDGMENT (PER: HON'BLE MR V KAMESWAR RAO, ACTING CHIEF JUSTICE) The challenge in this appeal is to an order dated 05.03.2025 passed by the trial Court in COM.A.A.No.119/2025, whereby, the trial Court has on an application filed under Section 9 of the Arbitration and Conciliation Act, stated as under: - 3 - HC-KAR NC: 2025:KHC:20627-DB COMAP No. 310 of 2025 O R D E R "Respondents No.1 and 2 are hereby restrained from transferring or dealing with the account of petitioner to an extent of Rs.26,00,000/- as claimed in I.A.1 till next date of hearing. Further respondents No.1 and 2 are directed to deposit amount of Rs.26,00,000/- before this court or to furnish bank guarantee for this amount as claimed in I.A.2. Further respondents No.1 and 2 are hereby restrained from selling respondent No.2 to any third party or creating any 3rd party rights in or to organization as claimed in I.A.3 till next date of hearing. Issue T.I. warrant IA-1 to 3, notice on I.A.1 to 3 and main petition to respondent No.1 and 2 through Court and RPAD. Applicant shall comply the provisions under Order XXXIX Rule 3(a) of CPC forthwith. Call on by 22.04.2025." 2. The submission of the learned counsel for the appellants is that the trial Court could not have passed this order as the said order shall amounts to allowing the final relief as prayed for by the respondents. He states that the - 4 - HC-KAR NC: 2025:KHC:20627-DB COMAP No. 310 of 2025 appellant herein shall secure the amount of Rs.26,00,000/- by keeping it in his account till such time the interse dispute between parties is decided by the learned Arbitrator. 3. This submission is opposed by the learned counsel for respondents by stating appropriate shall be a Bank Guarantee be furnished by the appellants in favour of the respondents herein so that the amount is secured. 4. Having noted the submissions made by learned counsel for the parties, we deem it appropriate to direct the appellants to deposit the amount of Rs.26,00,000/- (Rupees Twenty Six Lakhs only) with the Registrar General of this Court within a period of eight weeks from today. 5. On such deposit, the amount shall be invested in an interest bearing FDR of a Nationalised Bank till the culmination of the Arbitration Proceedings by an Arbitrator. - 5 - HC-KAR NC: 2025:KHC:20627-DB COMAP No. 310 of 2025 6. At this stage, learned counsel for the parties have also given their consent for appointment of an Arbitrator to adjudicate the dispute between the parties under the aegis of Bangalore Arbitration Centre. If that be so, we appoint Mr. Justice Rajendra Badamikar, a Former Judge of this Court as the Sole Arbitrator, who shall adjudicate the dispute between the parties. He shall hold the proceedings under the aegis of the Bangalore Arbitration Centre. His appointment, including the fee shall be regulated under the Rules of Bengaluru Arbitration Centre. 7. It is made clear that the deposit of Rs.26,00,000/- (Rupees Twenty Six Lakhs only) with the Registrar General of this Court shall be subject to the adjudication of the dispute between the parties by the learned Arbitrator as appointed by this Court. 8. The learned counsel for the parties shall state in view of the above, the appeal as well as COM.A.A.No. 119/2025 be disposed of. It is ordered accordingly. - 6 - HC-KAR NC: 2025:KHC:20627-DB COMAP No. 310 of 2025 9. Suffice to state that the learned Arbitrator shall decide the dispute between the parties without being influenced by the order of deposit made by this Court in this proceeding. The Arbitrator shall adjudicate the dispute between the parties through claims and counter claims, if any. 10. All the contentions of the parties are left open both on facts and in law to be adjudicated by the learned Arbitrator. 11. The appeal as well as COM.A.A. No.119/2025 are disposed of. Sd/- (V KAMESWAR RAO) ACTING CHIEF JUSTICE Sd/- (C M JOSHI) JUDGE tsn* List No.: 1 Sl No.: 48