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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 22ND DAY OF DECEMBER 2021

PRESENT

THE HON’BLE MR. JUSTICE ALOK ARADHE

AND

THE HON’BLE MR.JUSTICE ANANT RAMANATH HEGDE

COMAP NO.101 OF 2021

BETWEEN:

ANHEUSER BUSCH INBEV INDIA LIMITED

FORMERLY KNOWN AS SABMILLER

INDIA LIMITED

HAVING ITS REGISTERED OFFICE AT

UNIT NO.301-302, THIRD FLOOR

DYNASTY BUSINESS PARK, B WING

ANDHERI KURLA ROAD

ANDHERI (EAST), MUMBAI-400059.

AND ITS CORPORATE OFFICE AT

6^TH FLOOR, GREEN HEART BUILDING

MFAR, MANYATA TECH PARK

PHASE IV NAGAVARA VILLAGE

BANGALORE-560045.

... APPELLANT

(BY MR. ADITY SONDHI, SR. COUNSEL FOR

MR. PRASANTH V.G. ADV.,)

AND:

SCARPE MARKETING PVT LTD

302 & 305, PLOT NO.32-34 AND 39-41

KTC ILLUMINATION, GAFOOR NAGAR

MADHAPUR, HYDERABAD

(TELANGANA)-500081.

R

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... RESPONDENT

(BY MR. SALMAN KURSHID, SR. COUNSEL FOR

MRS. IRFANA NAZEER, ADV., A/W

MR. DUVVA PAVANKUMAR, ADV.,

MR. ZAFAR KHURSHID, ADV.,

MR. LUBNA NAAZ, ADV.,

MR. MOHD. WASAY KHAN, ADV.,

Ms. SAKSHI KOTIYAL, ADV.,

MRS. SHRADDHA GUPTA, ADV.,)

- - -

THIS COMAP IS FILED UNDER SECTION 37(1)(C) OF

THE ARBITRATION AND CONCILIATION ACT 1996 R/W

SECTION 13(1A) OF THE COMMERCIAL COURT ACT, PRAYING

TO CALL FOR RECORDS IN COM.A.P.No.42/2021 ON THE

FILE OF THE LXXXV ADDITIOANL CITY CIVIL AND SESSIONS

JUDGE AT BENGALURU AND SET ASIDE THE JUDGMENT

DATED 24.06.2021 IN COM.A.P.No.42/2021 PASSED BY

LXXXV ADDITIONAL CITY CIVIL AND SESSIONS JUDGE AT

BENGALURU (CCH-86) AS WELL AS THE ARBITRAL AWARD

DATED 02.11.2020 IN THE INTEREST OF JUSTICE AND

EQUITY.

THIS COMAP HAVING BEEN HEARD AND RESERVED

FOR

JUDGMENT

ON

14.12.2021,

COMING

ON

FOR

PRONOUNCEMENT OF JUDGMENT THIS DAY, ALOK ARADHE

J., DELIVERED THE FOLLOWING:

ORDER

This appeal under Section 13(1-A) of the Commercial

Court Act, 2015 read with Section 37(1)(b) of the Arbitration

and Conciliation Act, 1996 (hereinafter referred to as 'the

Act' for short)emanates from judgment dated 24.06.2021

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passed by the Commercial Court by which objections

preferred by the appellant under Section 34 of the Act have

been dismissed. In order to appreciate the appellant's

challenge to the impugned judgment, relevant facts need

mention, which are stated infra.

(I) FACTUAL BACKGROUND:

2.

The appellant is a company incorporated under

the provisions of Companies Act, 1956 and is engaged in the

business of manufacturing and brewing beer under several

brands. The respondent is also a company under the

provisions of Companies Act, 1956 incorporated with a view

to cater to the needs of multinational companies in assisting,

marketing, organizing and setting up of their businesses in

India. An agreement viz., Customer Information And Service

Provider agreement (CISP) was executed on 21.03.2012

between Skol Breweries Limited (SKOL) And Elios Business

Solutions Private Limited (ELIOS). Under the aforesaid

agreement, ELIOS was engaged by SKOL for promotion of

sale of its products in the erstwhile State of Andhra Pradesh.

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3.

First addendum to the agreement to aforesaid

CISP agreement was executed on 03.06.2014. The parties by

the aforesaid addendum agreed to rename SKOL as

SABMiller and the CISP agreement was made applicable to

the States of Telangana and Andhra Pradesh pursuant to its

bifurcation with effect from 02.06.2014. On 09.09.2015,

SABMiller by a second addendum renewed the CISP

agreement with ELIOS for a period of 5 years with effect

from 01.10.2015 till 31.08.2020. Under the aforesaid

addendum, the parties also agreed to extend the term of

CISP and further agreed to assign the rights, duties and

liabilities of ELIOS under the CISP agreement to respondent

herein. Thereafter, SABMiller was acquired by the appellant

in 2017.

4.

Clause 10.4 of the CISP Agreement provides that

if respondent breaches any of the terms of the agreement,

the agreement can be terminated immediately without prior

no