- 1 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF DECEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MS. JUSTICE TARA VITASTA GANJU REGULAR FIRST APPEAL NO. 1090 OF 2014 BETWEEN: 1. THE AXIS BANK LTD., HAVING ITS REGISTERED OFFICE AT TRISHUL, 3RD FLOOR OPP. TO SAMANTHESHWARA TEMPLE LAW GARDEN, ILLIS BRIDGE AHMADABAD, GUJARAT 2. THE AXIS BANK LTD., NO.10/116 ADITHYA AMOGA CHAMBERS DR. RAJKUMAR ROAD BANGALORE-560 010 REPRESENTED BY ITS ASSISTANT VICE PRESIDENT AND BRANCH HEAD MR. SUDHIR …APPELLANTS (BY SRI DHIRENDRA N. KATTI, ADVOCATE) AND: 1. SRI H.M. MALLIKARJUNA SWAMY S/O LATE MALLANNA H.P. AGED ABOUT 65 YEARS R/AT NO.255, III MAIN MAHALAKSHMI LAYOUT BANGALORE-560 086 Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 2. SRI N. VASUDEV SINCE DEAD BY HIS LRS 2(a) SMT. ANITHA W/O LATE N VASUDEV AGED ABOUT 61 YEARS 2(b) SRI HARSHA S/O LATE N VASUDEV AGED ABOUT 34 YEARS 2(c) SRI DHANUSH S/O LATE N VASUDEV AGED ABOUT 27 YEARS ALL ARE R/AT NO.42 2ND 'A' CROSS, 4TH MAIN G.H.B. SOCIETY SAHAKARANAGAR BENGALURU-560 096 (AMENDED V/O DT. 03.03.2025) 3. SRI N.C. PRABHAKAR S/O N. CHINNAPPARAJU AGED ABOUT 37 YEARS R/AT NO.523, 5TH CROSS MAHALAKSHMI LAYOUT BANGALORE-560 086 …RESPONDENTS (BY SRI T SESHAGIRI RAO, ADVOCATE FOR R-1, R-2(A-C) & R-3) THIS RFA IS FILED UNDER SECTION 96 READ WITH ORDER 41 RULE 1 OF CPC, AGAINST THE JUDGMENT AND DECREE DATED 22.03.2014 PASSED IN O.S.NO.3890/2012 ON THE FILE OF THE XLI ADDITIONAL CITY CIVIL JUDGE, BENGALURU, DECREEING THE SUIT FOR RECOVERY OF MONEY. - 3 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 THIS APPEAL, COMING ON FOR FURTHER HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MS. JUSTICE TARA VITASTA GANJU ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE D K SINGH) 1. The present appeal under Section 96 of the Code of Civil Procedure, 1908 (CPC) has been filed against the judgment and decree dated 22.03.2014 passed in O.S.No.3890/2012 instituted by the respondents/plaintiffs. The Trial Court has decreed the suit with costs and directed the appellants/defendants to jointly and severally pay an amount of Rs.20,56,800/- to the respondents/plaintiffs with interest @18% p.a. from the date of suit till realisation. 2. During the pendency of the present appeal, the parties have settled the dispute amicably outside the Court and they have filed a joint compromise petition under Order XXIII Rule 3 read with Section 151 of CPC to pass a compromise decree in terms of the compromise arrived at between the parties. The terms of compromise would read as under:- - 4 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 "4. It is submitted that, the Appellant Bank has agreed to pay and the Respondents have agreed to receive a total sum of Rs.15,00,000/- (Rupees Fifteen Lakhs only) as full and final settlement of all claims arising out of the Judgement and Decree dated 22.03.2014 in O.S.No.3890/2012 passed by the Learned XLI-Addl. City Civil Judge, Bengaluru. 5. It is submitted that the Respondents have agreed that, upon receiving a sum of Rs.15,00,000/- (Rupees Fifteen Lakhs only) in full and final settlement, they shall have no further claims against the Appellant Bank in respect of the suit transaction, the judgment and decree dated 22.03.2014 in OS No.3890/2012 passed by the Learned XLI-Addl. City Civil Judge, Bengaluru, and/or the execution proceedings arising therefrom in E.P. No.3188/2014 on the file of the XLI Additional City Civil Judge, Bengaluru. 6. The parties further agree that the settlement amount shall be apportioned among the three respondents as per the MOU entered among the respondents as mentioned in Sl. No.7 of the schedule to the Registered Lease Agreement dated 21.07.2008, as under: (a) A sum of Rs.7,50,000/- (Rupees Seven Lakhs Fifty Thousand Only) being paid by the Appellants to Respondent No.1 (Sri. H. M. Mallikarjuna Swamy), through the Demand Draft No.101957 dated 10.12.2025, drawn on Axis Bank Ltd., Rajajinagar Branch, Bengaluru. - 5 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 (b) A sum of Rs.3,75,000/- (Rupees Three Lakhs Seventy Five Thousand Only) being paid by the Appellants to the legal heirs of the deceased Respondent No.2 (N. Vasudev), in the following manner: (i) Rs.1,25,000/- (Rupees One Lakh Twenty Five Thousand Only) to the respondent No.2(a), (Smt. Anitha) through the Demand Draft No.101956 dated 10.12.2025, drawn on Axis Bank Ltd., Rajajinagar Branch, Bengaluru. (ii) Rs.1,25,000/- (Rupees One Lakh Twenty-Five Thousand Only) to the respondent No.2(b), (Sri.Harsha) through the Demand Draft No.101955 dated 10.12.2025, drawn on Axis Bank Ltd., Rajajinagar Branch, Bengaluru and (iii) Rs.1,25,000/- (Rupees One Lakh Twenty-Five Thousand Only) to the respondent No.2(c), (Sri. Dhanush) through the Demand Draft No.101958 dated 10.12.2025, drawn on Axis Bank Ltd., Rajajinagar Branch, Bengaluru, (c) A sum of Rs.3,75,000/- (Rupees Three Lakhs Seventy Five Thousand Only) being paid by the Appellants to Respondent No.3 (Sri. N. C. Prabhakar), through the Demand Draft No.101959 dated 10.12.2025, drawn on Axis Bank Ltd., Rajajinagar Branch, Bengaluru. In this manner, the respondents herein have acknowledged having received a sum of Rs.15,00,000/- (Rupees Fifteen Lakhs Only) from the Appellants herein, in full and final settlement of all claims arising out of the Judgement and Decree dated 22.03.2014 in O.S.No.3890/2012 passed by the Learned XLI-Addl. City Civil Judge, Bengaluru. - 6 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 7. It is submitted that the Appellants had deposited a sum of Rs.15,75,806/- (Rupees Fifteen Lakhs Seventy-Five Thousand Eight Hundred and Six Only), being 50% of the decreed amount, before the Hon'ble City Civil Judge, Bengaluru in Ex. No.3188/2014 at the time of recalling the attachment warrant, through Demand Draft No.040358 dated 21.01.2015 drawn on Axis Bank Ltd., in favour of "The Registrar, City Civil Court, Bengaluru'. The parties have mutually agreed that the said amount deposited in Ex. No.3188/2014 shall be permitted to be withdrawn by the JDR/Appellant Bank in terms of the full and final settlement arrived at in the above case, along with interest accrued thereon, if any. In this regard, the respondents have agreed to cooperate with the appellant's bank to withdraw the said amount deposited before the execution court. It is further agreed between the parties that, the Decree Holders/Respondents herein, in Ex.P.No.3188/2014 shall file the necessary Memo for closure of the said execution proceedings, recording full and final satisfaction of the decree after withdrawal of the amount deposited by the JDR as stated above. The parties have agreed that they shall not make any claim against each other in respect of the registered Lease Agreement dated 21.07.2008. This compromise shall be the full and final settlement between the parties." - 7 - HC-KAR NC: 2025:KHC:52443-DB RFA No. 1090 of 2014 3. The parties are present before the Court and state that they have put their signatures on the settlement agreement. The parties have been identified by their respective counsel. 4. In view of the aforesaid, we modify the judgment and decree passed by the Trial Court and direct that a decree in terms of the compromise arrived at by the parties extracted hereinabove be drawn up. 5. The appeal is accordingly disposed of. The Court fee, if permitted under the law, may be refunded to the appellants. In view of disposal of the appeal, pending IAs, if any, do not survive for consideration and accordingly, they stand disposed of. Sd/- (D K SINGH) JUDGE Sd/- (TARA VITASTA GANJU) JUDGE BKV List No.: 1 Sl No.: 1