S. Ravindra Bhat, J. FACTS

1. The present appeal arises against the decree passed by the learned Single Judge in CS(OS) 1661/2003 and CS(OS) 2108/2011 for the recovery of Rs. 45,23,414/-.

2. The appellant and respondent, both private limited companies registered under the Companies Act, 1956 entered into a license agreement dated 01.09.1995 in respect of premises bearing No 305A and 305B, Embassy Square, 148 Infantry Road, Bangalore (“suit premises”). The said premises were licensed by the respondent to the appellant company for 36 months, with a condition enabling renewal for 3 further years. The agreement was renewed till 31st August 2001. A security deposit of Rs. 27,45,000/-was paid through cheques to the respondent by the appellant. The agreement expired by efflux of time and the appellant shifted its office from the suit premises.

3. The appellant applied and secured permission from the Karnataka Electricity Board for additional load, for the said licensed premises; it made a refundable security deposit of Rs. 2,02,100/-(in terms of Clause 6 of the license agreement). It also installed standby generating sets and made a refundable security deposit of Rs. 6,25,000/-