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2025 DAILYLAW 75481 (KAR)

M/S RACHEM v. M/S LORDS VARAM HOTELS PVT LTD

COMAP/418/2025 · 2025-07-30

C M Joshi

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:29272-DB COMAP No. 418 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JULY, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C M JOSHI COMMERCIAL APPEAL NO. 418 OF 2025 BETWEEN: 1. M/S RCHEM PROPRIETORSHIP CONCERN HAVING OFFICE AT 1085, 5TH A MAIN NEAR MSR COLLEGE ENTRANCE GOKULA EXTENSION BANGALORE NORTH BANGALORE - 560 054 REPRESENTED BY ITS PROPRIETOR N.V. PRASAD …APPELLANT (BY SRI JAYANTH V, ADVOCATE) AND: 1. (a) M/s LORDS VARAM HOTELS PVT. LTD. COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 AND HAVING OFFICE AT 26/A ELECTRONIC CITY PHASE I HOSUR ROAD BENGALURU - 560 010 REPRESENTED BY ITS MANAGING DIRECTOR ALSO AT: M/S LORD VARAM HOTELS PVT. LTD. 202, 2ND FLOOR MORYA BLUE MOON Digitally signed by AMBIKA H B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:29272-DB COMAP No. 418 of 2025 (b) OPPOSITE CITI MALL OFF NEW LINK ROAD ANDHERI WEST MUMBAI - 400 053 M/S LORDS VARAM HOTELS PVT. LTD. No.157 AND 158 8TH CROSS, 10TH MAIN ROAD I BLOCK, JAYANAGAR BENGALURU - 560 011 …RESPONDENT THIS COMMERCIAL APPEAL UNDER SECTION 13 (1-A) OF THE COMMERCIAL COURTS ACT, 2015 PRAYING TO SET ASIDE THE ORDER AND JUDGMENT DATED 24.04.2025 PASSED BY THE LXXXIX ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU (COMMERCIAL COURT, CCH-90) IN COM. A.A NO.281/2024 ALLOWING THE APPLICATION UNDER SECTION 9 OF THE ARBITRATION AND CONCILIATION ACT, 1996 FILED BY THE RESPONDENT HEREIN AND PASS SUCH OTHER ORDERS AS DEEMED FIT. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU ,CHIEF JUSTICE and HON'BLE MR. JUSTICE C M JOSHI ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU,CHIEF JUSTICE) 1. For the reasons stated in the application-IA No.1/2025, the application is allowed. The delay in filing the appeal is condoned. 2. The appellant has filed the present appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 [the A&C Act] - 3 - HC-KAR NC: 2025:KHC:29272-DB COMAP No. 418 of 2025 impugning an order dated 24.04.2025 passed by the learned Commercial Court in Com.A.A No.281/2024. The respondent had filed the aforesaid petition under Section 9 of the A&C Act, inter alia, praying that the appellant be restrained from altering, harming, or in any manner impeding the respondent's access to possession of the demised premises. 3. There is no dispute that the demised premises [site bearing No.27 (No.157 and 158) PID No.62-121-27, Ward No. 62, Hombegowdanagar, situated at 8th Cross, 10th Main, I Block, Jayanagar, Bengaluru] had been sublet by the appellant to the respondent. The respondent had thereafter raised a construction and is operating a hotel from the developed property. 4. The learned counsel appearing for the appellant submits that the appellant had terminated the sublease and issued a notice to the respondent to vacate the demised premises. The same resulted in disputes between the parties which are referred to arbitration. - 4 - HC-KAR NC: 2025:KHC:29272-DB COMAP No. 418 of 2025 5. In the given circumstances, the learned Commercial Court issued directions for interim measures of protection as sought for by the respondent. 6. The learned counsel appearing for the appellant submits that the appellant is essentially aggrieved by certain findings recorded in the impugned order and apprehends that the same would prejudice the appellant's case before the Arbitral Tribunal. He fairly states that as far as the operative part of the impugned order is concerned, the same may be sustained. 7. It is trite law that any observations made in the interim order are only prima facie observations and are not final. The impugned order has been passed in exercise of powers under Section 9 of the A&C Act to issue interim measures of protection. Clearly, any observations made by the learned Commercial Court in the impugned order would not bind the Arbitral Tribunal in the final adjudication of the disputes between the parties. 8. In this regard, we consider it apposite to dispose of the present appeal by clarifying that none of the findings (prima facie or otherwise), will preclude the Arbitral Tribunal from independently - 5 - HC-KAR NC: 2025:KHC:29272-DB COMAP No. 418 of 2025 adjudicating the disputes between the parties. The Arbitral Tribunal will consider the claims/counter claims, in accordance with law, uninfluenced by any observations made in the impugned order. 9. The commercial appeal is disposed of in the aforesaid terms. 10. Pending application also stands disposed of. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C M JOSHI) JUDGE AHB List No.: 1 Sl No.: 25