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2023 Supreme(Online)(Kar) 36221

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF MARCH, 2023 BEFORE THE HON'BLE MR JUSTICE SREENIVAS HARISH KUMAR WRIT PETITION NO. 2385 OF 2023 (GM-CPC)

Between:

1. M/s. Kamalalaya Hiisoft (P) Ltd., Company incorporated under The Companies Act 1956 Having its registered office at Plot No.166 (Municipal No.8-2-293/82/NL/166)

New MLA and MP’S Colony, Road No.10C, Jubilee Hills, Hyderabad TG 500 033 Represented by its Authorized Signatory and Chief Operating Officer MR Venkata Ranjit Patibandla Digitally signed by C K LATHA 2. Mrs. Uma Rani Yalamanchili Location: HIGH Aged about 63 years COURT OF W/o. Yalamanchili Jithin Kumar KARNATAKA Having her Office at Plot No.166 (Municipal No.8-2-293/82/NL/166)

New MLS and MP’S Colony Road No. 10 C, Jubilee Hills Hyderabad TG-500033

3. Mr. Yalamanchilli Srinivas Naveen Aged about 39 years S/o Yalamanchili Jithin Kumar, Having her Office at Plot No.166 (Municipal No.8-2-293/82/NL/166)

New MLS and MP’S Colony Road No. 10 C, Jubilee Hills Hyderabad TG-500033 …Petitioners (By Sri Udaya Holla, Senior Advocate for Sri S.Sammith S., Advocate)

And:

M/s. Sree Venkateswara Developers A Partnership Firm registered under the Indian Partnership Act, 1932 Having its registered office at No. 51 Le Parc Richmonde Richmond Road, Bengaluru -560 025 Represented by its Managing Partner Mr. Adithya Reddy …Respondent (By Sri B.C.Thiruvengadam, Senior Advocate for Sri Manik B.T., Advocate)

This Writ Petition is filed under Articles 226 and 227 of the Constitution of India, praying to call for records in O.S.No.662/2023 pending on the file of the Learned XXXIX Additional City Civil and Sessions Judge, Bengaluru; quash the impugned order dated 27.01.2023 passed by the learned XXXIX Additional City Civil and Sessions Judge, Bengaluru (CCH-40) in O.S.662/2023 as contained in Annexure-A and etc.

This Writ Petition coming on for orders this day, the court made the following:

ORDER

The writ petitioners are defendants 1 to 3 in O.S.No.662/2023, on the file of XXXIX Additional City Civil Judge (CCH-40), Bengaluru. The respondent is the plaintiff and it, being a partnership firm, has claimed damages of Rs. 100,00,00,000/- (Rupees One hundred Crores) with interest at the rate of 12% per annum for slanderous and libelous defamatory statements made by the petitioners. The respondent also filed an application under Order XXXVIII Rule 5 CPC requesting the court to pass an order attaching the petitioners’ immovable property and bank account before judgment. The suit was filed on 27.01.2023, and on the same day the suit was posted before the court for consideration of I.A.No.1 filed under Order XXXVIII Rule 5 CPC. The petitioners had entered caveat, and in the presence of counsel for respondent and the petitioners, the trial court heard on I.A.1 and posted the case to 30.01.2023 for orders on the application. On 28.01.2023, the petitioners filed this writ petition seeking to quash the order dated 27.01.2023 produced at Annexure A. Since on 30.01.2023, the trial court passed an order directing the petitioners to show cause as to why they should not furnish security for the decree that may be passed in the suit, they have filed an application under Order VI Rule 17 CPC to insert additional prayer in the writ petition for quashing the order dated 30.01.2023, produced at Annexure A1. The application for amendment requires to be allowed.

2. I have heard Sri Udaya Holla, learned senior counsel appearing for Sri S.Sanmith learned counsel for the petitioners, and Sri B.C.Thiruvengadam, learned senior counsel appearing for Sri B.T.Manik for the respondent.

3. It was the argument of Sri Udaya Holla that the orders at Annexures A and A1 were to be quashed for two reasons, firstly that the petitioners had entered caveat, and when the suit was posted before the court for the first time on 27.01.2023, the caveators’ counsel was very much present before the court and prayed for time to file statement of objections. But without giving time, the court posted the case for orders, thus the petitioners who had entered caveat were denied of an opportunity to file their statement of objections.

3.1. His second line of argument was that the affidavit filed along with application for attachment before judgment does not contain essential ingredients specified in Order XXXVIII Rule 5 CPC, and in the absence of the same, the court cannot issue show cause notice also and therefore orders at Annexures A and A1 are to be quashed.

4. Sri B.C.Thiruvengadam replied that the caveators’

counsel was heard on 27.01.2023 and only thereafter the case was adjourned to 30.01.2023 for orders. In regard to issuance of show cause notice, he argued that the respondent’s suit is for damages of Rs.100,00,00,000/- (One hundred Crores) in connection with defamatory statements made by the petitioners against the respondent. The respondent has documentary evidence to prove its claim. In para 18 of the affidavit, it is clearly stated that the petitioners are trying to alienate the property and will disappear without meeting the suit claim, and in that event the suit will become infructuous. Therefore, only on being satisfied that ingredients of Order XXXVIII Rule 5 CPC are present, the court directed the petitioners to show cause for the claim made in the plaint. Absolutely there is no infirmity in the order and hence writ petition is to be dismissed.

5. Now it may be stated that once caveat is filed, no interim order can be passed without hearing the caveator; and if the caveator wants to file statement of objections, reasonable time must be granted or otherwise, the very purpose of filing the caveat would be defeated. However, if the party approaching the court makes out an extraordinary circumstance in the presence of caveator requiring intervention of the court to pass an interim order, the court may pass appropriate order to be in force for a limited period

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