HIGH COURT LEGAL SERVICES COMMITTEE DHARWAD BENCH BEFORE THE LOK ADALAT IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 26TH DAY OF APRIL, 2025 CONCILIATORS PRESENT THE HON’BLE MR. JUSTICE S G PANDIT AND SHRI GOPAL B. PATIL, MEMBER R.F.A.No.100254/2024 LOK ADALAT No.311/2025 BETWEEN: ANAND, S/O. PRASAD TAMSE, AGE. 46 YEARS, OCC. DIRECTOR, K.R. ENTERPRISE, R/O. 4TH FLOOR, SHRI. DATTA PRASAD COMPLEX, GREEN STREET, KARWAR, DIST. UTTAR KANNADA-581301. ...APPELLANT (BY SHRI GIRISH A. YADAWAD, ADVOCATE) AND: 1 . WESTEND HOSPITALITIES PRIVATE LIMITED, REGD OFFICE 604/1, SEA SHORE ROAD (DR. PIKLE ROAD), KARWAR-581401. R/BY ITS MANAGING DIRECTOR, MR. MAINODDIN ABDUL RAHEMAN KITTUR, AGE. 60 YEARS 2 . MR. FIROZ SHOLAPUR, AGE. 40 YEARS, OCC. MANAGING DIRECTOR, R/O. K.R. ENTERPRISE, 4TH FLOOR, SHRI DATTA PRASAD COMPLEX, GREEN STREET, KARWAR, DIST. UTTAR KANNADA-581301 …RESPONDENTS (BY SHRI P.R. BENTUR, ADVOCATE FOR R1) (NOTICE TO R2 IS SERVED) THIS RFA IS FILED UNDER SEC.96(1) R/W ORDER XLI RULE 1 OF CPC. 1908, AGAINST THE JUDGMENT AND DECREE DATED 2 12.02.2020 PASSED IN O.S NO.11/2018 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE, KARWAR, DECREEING THE SUIT FILED FOR RECOVERY OF MONEY. THIS RFA COMING ON FOR CONCILIATION BEFORE LOK ADALAT AFTER BEING REFFERED BY THE COURT, THE FOLLOWING CONCILIATION ORDER IS PASSED: CONCILIATION ORDER Defendant No.2 is in appeal questioning the judgment and decree dated 12.02.2020 passed in O.S. No.11/2018 by the Principal Senior Civil Judge, Karwar, whereunder defendants No.1 and 2 are held jointly and severally liable to pay an amount of Rs.19,26,531/- to the respondent No.1/plaintiff with future interest at the rate of 6% per annum from the date of the suit till its entire realization. 2. The appellant/defendant No.2 and the respondent No.1/plaintiff along with their respective counsels are present before the Lok Adalat. Both the parties submit that they have amicably settled the dispute between them. 3. Today, both the parties have filed a compromise petition under Order XXIII Rule 3 of the Code of Civil Procedure, 1908. The compromise petition is signed by both the parties and their learned counsel. The terms of the compromise petition read as under: 3 “2. During the pendency of the top noted appeal, the matter was referred to Lok-adalath and in the pre-conciliation held, the parties due to intervention and proper advice of the Respected Conciliators and the respective counsel for the parties, have agreed to amicably settle the dispute between them and put a logical end to the same. The terms of settlement are as under: i. The trial court has held that the appellant/defendant No.2 and respondent No.2/defendant No.1 are jointly and severally liable to pay the sum of Rs.19,26,531/- with cost of the suit and future interest at the rate of 6% per annum from the date of suit till its entire realization. The appellant and respondent No.2 being equal partners of the firm namely K.R. Enterprises having profit and loss distribution to the extent of 50% each, the appellant is liable to pay to the extent of 50% of the decretal amount. In respect of the said liability of the appellant to the extent of 50%, the respondent No.1/plaintiff has agreed to receive a sum of Rs.12,00,000/- (Rupees Twelve Lakh Only) towards full and final settlement with regard to the liability of the appellant/defendant No.2 in respect of the decretal amount including cost, interest and advocate's fees. ii. Out of the said amount of Rs.12,00,000/-, a sum of Rs.5,00,000/- (Five Lakhs Only) is deposited in the Registry of this Hon'ble court by way of demand draft dated 25.09.2024 bearing No.449101 in terms of the interim order dated 20.08.2024 granted by this Hon'ble Court in the top noted appeal. The appellant and respondent No.1 agree that the respondent No.1 is entitled to withdraw the said amount and the appellant will not have any objection for the same. Further, the balance amount of Rs.7,00,000/- (Seven Lakhs Only) is paid by the appellant today to the respondent No.1 by way of a demand draft dated 22.04.2025 bearing No.449415. Hence, the total sum of Rs.12,00,000/- is in this way paid to the respondent No.1 by the appellant and the respondent No.1 acknowledges the same. iii. The respondent No.1 hereby agrees and acknowledges that his claim against the appellant is fully settled and that he shall have no claim whatsoever against the appellant in respect of the impugned decree passed by the trial court, in future. iv. It is also clarified that the respondent No.1 is free to proceed against the respondent No.2/defendant No.1 (Served and unrepresented in the top noted appeal) for recovery/realization of the remaining extent of 50% of the 4 decretal amount along with cost and interest which the respondent No.2 is liable to pay to the respondent No.1. v. It is also clarified that the appellant being an equal partner of the firm namely K. R. Enterprises as stated in clause (i) above, holds ownership of the assets of the said firm to the extent of 50% and it is agreed between the appellant and respondent No.1 that in the event the recovery of the amount from respondent No.2 in the execution proceedings is to be done by way of selling of the assets belonging to K. R. Enterprises, the same shall be applicable only to the extent of remaining 50% ownership of the respondent No.2 in the assets of the firm. vi. It is further agreed between the appellant and respondent No.1 that they shall file a joint memo before the executing court in Execution Case No.45/2023 pending on the file of the Principal Senior Civil Judge, Karwar along with a copy of the final order that would be passed in the top noted appeal in terms of this compromise petition and seek closure of the execution proceedings as against the appellant. vii. It is also agreed between the parties herein that the appellant is entitled to receive the court fee paid by him in the top noted appeal. The appellant accordingly prays this Hon'ble Court that an order to refund the court fees paid in the top noted appeal may kindly be passed. Wherefore, the appellant and respondent No.1 herein respectfully pray that this Hon'ble Court may be pleased to modify the judgment and decree dated 12.02.2020 passed by the Principal Senior Civil Judge, Karwar in OS No.11/2018, in terms of this compromise petition and pass a decree accordingly, in the interest of justice and equity.” 4. In terms of the compromise petition, the plaintiff has agreed to receive a total sum of Rs.12,00,000/- in full and final settlement of the claim as against respondent No.2. It is stated that, out of Rs.12,00,000/-, a sum of Rs.5,00,000/-, by way of a Demand Draft dated 25.09.2024 bearing No.449101, is deposited before this Court pursuant to the interim order 5 dated 20.08.2024, and the parties have agreed that the plaintiff is entitled to withdraw the said amount; and that a sum of Rs.7,00,000/- is paid today to respondent No.1 by way of a Demand Draft dated 22.04.2025 bearing No.449415 drawn on Karnataka Bank. 5. The compromise petition is taken on record. We are satisfied with the terms of the compromise which are in accordance with law. 6. The appeal stands disposed of in terms of the compromise petition. The Registry is directed to release a sum of Rs.5,00,000/- which is in deposit before this Court, to respondent No.1/plaintiff. 7. The appellants would be entitled for refund of the court fee paid on the appeal memo in accordance with law. Sd/- JUDGE Sd/- MEMBER KMS,CT:VP