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2026 DAILYLAW 10306 (KAR)

M/S PURE SPIRITS v. M/S RAT ENTERPRISES PVT. LTD.,

COMAP/112/2026 · 2026-02-25

C M Poonacha

body2026

Judgment text

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- 1 - HC-KAR NC: 2026:KHC:11830-DB COMAP No. 112 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF FEBRUARY, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA COMMERCIAL APPEAL NO. 112 OF 2026 BETWEEN: 1. M/S PURE SPIRITS A PARTNERSHIP FIRM CONSTITUTED UNDER THE PROVISIONS OF THE INDIAN PARTNERSHIP ACT, 1932 HAVING ITS REGISTERED OFFICE AT 70B, PURNA DAS ROAD 1ST FLOOR, P.O. SARAT BOSE ROAD P.S. RABINDRA SAROBAR KOLKATA, WEST BENGAL - 700 029 ALSO HAVING PLACE OF BUSINESS AT: HYATT REGENCY KOLKATA JA-1, SECTOR-3, SALT LAKE CITY KOLKATA - 700 106 REPRESENTED BY ITS PARTNER MR. RAHUL DAS BEING THE AUTHORIZED SIGNATORY 2. MR. RAHUL DAS PARTNER, M/S PURE SPIRITS S/O MR. RAKHAL DAS AGED ABOUT 32 YEARS R/AT ZELIANGRONG VILLAGE WARD NO.18, DIMAPUR NAGALAND - 797 117 Digitally signed by AMBIKA H B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:11830-DB COMAP No. 112 of 2026 3. MR. ASHISH KUMAR DEB PARTNER M/S PURE SPIRITS S/O LATE MR. SUKHOMOY DEB AGED ABOUT 53 YEARS R/AT HOUSE NO. 349 P WOMEN COLLEGE ROAD DIMAPUR, NAGALAND - 797 112 …APPELLANTS (BY SRI ARNAB CHAKRABORTY, ADVOCATE FOR SRI SURAJ S., ADVOCATE) AND: 1. M/S RAT ENTERPRISES PVT. LTD. A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 2013 HAVING ITS REGISTERED OFFICE AT 5A, 3RD FLOOR, RK PLAZA 80 FT. ROAD, RMV 2ND STAGE BANGALORE KARNATAKA - 560 094 REPRESENTED BY ITS DIRECTOR MR. ROHIT MALHOTRA …RESPONDENT (BY SMT. POONAM PATIL, ADVOCATE) THE COMAP IS FILED UNDER SECTION 13 (1-A) OF COMMERCIAL COURT ACT, READ WITH SECTION 37(1) (b) OF THE ARBITRATIONA AND CONCILIATION ACT, 1996 PRAYING TO SET ASIDE THE EX-PARTE AD-INTERIM ORDER DATED 06.02.2026 PASSED IN COM.A.A NO.46/2026 BY THE LEARNED LXXXIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE (BENGALURU) COMMERCIAL COURT, CCH-84 BY DINT OF WHICH THE BANK ACCOUNTS OF THE APPELLANTS HAVE BEEN FROZEN AND THE APPELLANTS HAVE ALSO BEEN RESTRAINED FROM CHANGE OFFING THE BRAND NAME "PLAY BOY" IN THE VENUE AT "THE HYATT REGENCY" KOLKATA & ETC. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:11830-DB COMAP No. 112 of 2026 CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The appellants have filed the present appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 [A&C Act] impugning an ex parte order dated 06.02.2026 [impugned order] passed by the learned LXXXIII Additional City Civil and Sessions Judge, Bengaluru (CCH-84) [Commercial Court] in COM. AA 46/2026. The respondent has filed the said petition under Section 9 of the A&C Act, seeking interim measures of protection. By the impugned order, the learned Commercial Court has restrained the appellants from changing the brand name of 'Playboy' used at the current venue at 'The Hyatt Regency', Kolkata, JA-1, JA Block, Sector 3, Bidhannagar, Kolkata, West Bengal. Additionally, the learned commercial court has restrained the appellants from operating, withdrawing, transferring or otherwise dealing with the specific bank accounts bearing bank account Nos.73610000209990 and 09090200001637 maintained with Bank of Baroda, Barbari Road Branch, Guwahati and the - 4 - HC-KAR NC: 2026:KHC:11830-DB COMAP No. 112 of 2026 current bank account bearing No.110305002235 maintained with ICICI Bank, Salt Lake Sector-III Branch, Kolkata. 2. It is clear from the above that the import of the impugned order is very wide and has the propensity to bring the business of the appellants to a complete stop. 3. The learned counsel appearing for the appellants submits the appellant firm is a sub-franchise of the respondent, who claims to be a franchisee of the brand 'Playboy' under a Master Franchise Agreement. He submits that it is now discovered that the Master Franchise Agreement may not be operative and there is a serious dispute whether the respondent ‒ company is a franchisee of the proprietor of the brand. He submits that the respondent also wears another hat of being a partner of the appellant firm. The respondent claims 7% of the gross proceeds as royalty fee, which works out to approximately `12 to 13 lakhs per month. He submits that the respondent has also entered into agreements with other parties under which the said parties pay only approximately a sum of `6 lakhs per month. He submits that given the uncertainty involved in carrying on the business as a franchisee, the appellant is not willing to proceed with the said business. He submits that the - 5 - HC-KAR NC: 2026:KHC:11830-DB COMAP No. 112 of 2026 appellants cannot be compelled to carry on a business, which they do not intend to. 4. The learned counsel appearing for the respondent submits that if the appellants are permitted to change their brand, the respondent would be put to loss of a brand fees of `1 crore paid by the respondent. 5. It is apparent from the above that the disputes involve rival monetary claims. However, the appellants' bank accounts cannot be frozen solely on that ground. Thus, the impugned order to the effect that it compels the appellants from using a particular brand also requires consideration. 6. Given the nature of the disputes, prima facie, we are unable to accept that an ex parte order of such wide import is sustainable. 7. At this stage, the learned counsel for the parties state that since the matter is listed before the learned Commercial Court on 02.03.2026, the impugned order may be set aside with liberty to the parties to advance their submissions before the learned Commercial Court. - 6 - HC-KAR NC: 2026:KHC:11830-DB COMAP No. 112 of 2026 8. We, accordingly, set aside the impugned order. 9. The appellants shall file their statements of objections, if any, before the next date of hearing. We request the learned Commercial Court to dispose of the application under Section 9 of the A&C Act as expeditiously as possible. 10. The appeal is disposed of in the aforesaid terms. 11. The pending interlocutory application also stands disposed of. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C.M. POONACHA) JUDGE AHB List No.: 2 Sl No.: 26