- 1 - HC-KAR NC: 2025:KHC:37130 WP No. 19812 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO.19812 OF 2025 (GM-CPC) BETWEEN: 1. SRI. B. K. KANTHA REDDY, S/O LATE KRISHNA REDDY, AGED ABOUT 54 YEARS, R/AT NO.3, 1ST AVENUE, SHUBH ENCLAVE, HARALUR ROAD, OFF SARJAPUR ROAD, BENGALURU - 560 102. 2. SMT. RADHIKA, W/O LATE B. K. ANANTHA REDDY, S/O LATE KRISHNA REDDY, AGED ABOUT 38 YEARS, R/AT BELLANDUR VILLAGE, VARTHRU HOBLI, BENGALURU EAST TALUQA, BENGALURU. 3. MASTER A KUSHAL REDDY, S/O LATE B. K. ANANTHA REDDY, S/O LATE KRISHNA REDDY, AGED ABOUT 20 YEARS, R/AT BELLANDUR VILLAGE, VARTHUR HOBLI, BENGALURU EAST TALUQA, BENGALURU. 4. MISS. VIDHYA A, D/O LATE B. K. ANANTHA REDDY, AGED ABOUT 16 YEARS, Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:37130 WP No. 19812 of 2025 SINCE MINOR REP BY HER NATURAL MOTHER AND GUARDIAN SMT. RADHIKA, R/AT BELLANDUR VILLAGE, VARTHUR HOBLI, BENGALURU EAST TALUQA, BENGALURU. 5. SMT. B. K. DHANALAKSHMI, W/O K. S. UMESH, AGED ABOUT 48 YEARS, R/AT NO. 37, 4TH AVENUE, SMILEE GREENS, GULIMANGALA VILLAGE, HUSKUR ROAD, BENGALURU - 560 099 …PETITIONERS (BY SRI. K.B. MONESH KUMAR, ADVOCATE) AND: 1. M/S SMARTWORKS COWORKING SPACES PRIVATE LIMITED, COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANY’S ACT, 2013, HAVING ITS REGISTERED AT UNIT NO.305-310, PLOT NO.9, 10 AND 11, VARDHMAN TRADE CENTER, NEHRU PLACE, NEW DELHI – 110 019 ALSO AT PRESTIGE ZEENATH, RAJA RAM MOHAN ROY ROAD, SAMPANGI RAM NAGAR, BENGALURU - 560 001. REP. BY ITS AUTHORIZED REPRESENTATIVE MR. KARTHIKRAJA PERUMAL. - 3 - HC-KAR NC: 2025:KHC:37130 WP No. 19812 of 2025 2. M/S VAISHNAVI INFRASTRUCTURE (P) LTD R/OFF AT NO.2/2, WALTON ROAD, OFF VITTAL MALLYA ROAD, BENGALURU - 560 001. REPRESENTED BY MANAGING DIRECTOR. 3. SRI. GOVINDACHARY, S/O LATE DASACHARY, AGED ABOUT 72 YEARS, R/AT 17/1, AMBALIPURA, AGARA POST, SARJAPURA ROAD, BENGALURU - 560 034. 4. SRI. B. K. NAGARJA REDDY, S/O LATE KRISHNA REDDY, AGED ABOUT 50 YEARS, R/AT BELLANDUR VILLAGE, VARTHUR HOBOI, BENGALURU EAST TALUQA, BENGALURU - 560 103 …RESPONDENTS (BY SRI. SWAROOP, ADVOCATE FOR C/R1; SRI. PRABHULING K. NAVADGI, SENIOR COUNSEL FOR MS. SANJEEVINI P NAVADGI, ADVOCATE FOR C/R2) THIS WP IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) SET ASIDE THE ORDER DATED 02.04.2025 PASSED IN COMMERCIAL OS NO. 114/2024 ON IA NO.XIII & XIV OF 2025 BY THE XI ADDL. DISTRICT & SESSIONS JUDGE (DEDICATED COMMERCIAL COURT) BENGALURU RURAL DISTRICT, ANNEXURE-J; b) BE FURTHER PLEASED TO ALLOW THE APPLICATION I A NO.XIII & XIV DATED 19.10.2024 FILED BY THE PETITIONERS SEEKING FOR THE RELIEF OF PERMISSION TO WITHDRAW THE AMOUNTS DEPOSITED BY THE RESPONDENT NO.1 AS DAMAGES AND ETC - 4 - HC-KAR NC: 2025:KHC:37130 WP No. 19812 of 2025 THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER Learned counsel for the petitioners has filed a memo which reads as follows: "The Advocate for the Petitioner on instructions submit that the Petitioner Land owners would open an Escrow A/c & keep in the said A/c a sum of Rs 6.00 Crores as GST amounts in the event any claim would arise on the Land Owners. At the same time, the Petitioners also undertake to make good any additional amounts on head of GST if so demanded by the GST department. In the event the share of GST as to be demanded is much lesser than Rs 6.00 crores, in that event the Petitioners may be permitted to withdraw such amounts which shall remain after satisfaction of the GST demand Notice. It is also placed on record that the Petitioners are bound by the terms stated in this MEMO in the event of a GST demand on the portion of the Petitioners built up area only. Placing the aforestated on record, it is most humbly prayed that this Hon'ble Court be pleased to direct the release of amounts in deposit before the Court below & such future amounts to be deposited by the respondents in the future to serve the interest of justice & equity without prejudice to all their adjudicatable and all other legal rights in law." 2. Learned Senior Counsel Sri.Prabhuling K.Navadgi appearing for respondent No.2 have no objection to the - 5 - HC-KAR NC: 2025:KHC:37130 WP No. 19812 of 2025 contents of the memo except the fact that the amount of Rs.6,00,00,000/- would be deposited before the Arbitrator- Hon’ble Justice Subhash B Adi and not in escrow account. 3. Learned counsel appearing for the petitioners submits that they must be permitted to withdraw the amount, the withdrawal would be on the condition that it is not a lease but damages. The submission is unacceptable to the respondents as it is the Coordinate Bench of this Court or the order in the Commercial Court would clearly indicate that the petitioners are entitled to receive the amount as rent payable by the respondents to the petitioners. Learned counsel Sri.Monesh Kumar submits that they have not executed any lease deed, it is the developer who has executed the lease deed. Therefore, they will receive it as damages. Be that as it may. 4. The petitioners if they want to withdraw the amount, they shall withdraw the same without prejudice to their contentions to be decided before the Arbitrator or suit in Commercial O.S.No.114/2024. - 6 - HC-KAR NC: 2025:KHC:37130 WP No. 19812 of 2025 With the aforesaid observations, the petition stands disposed. Sd/- (M.NAGAPRASANNA) JUDGE CBC List No.: 1 Sl No.: 12