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2025 Supreme(Kar) 2853

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
PRADEEP SINGH YERUR, J.
Sri. Palakolanu Sudhakar Reddy, S/o. Krishna Redy – Appellant
Versus
Smt.Chunchu Sandhya Rani, W/o. Chunchu Rama Krishna – Respondent 
Writ Petition No. 22346 Of 2025 (GM-CPC)
Decided On : 04-11-2025

Advocates Appeared:
For the Appellant :Sri. Suresh Lokre, Senior Advocate A/W Sri. Shravan S Lokre., Adv.
For the Respondent: Sri. Giridhar S. V.,Adv.

Procedural fairness in judicial orders is essential; orders issued without proper notice and opportunity to the affected parties are unsustainable in law.

Headnote:(A) Code of Civil Procedure - Order XXXVIII Rule 5 - Commercial Courts Act - Section 12-A - This writ petition concerns orders regarding conditional attachment of defendants' movable properties and the requirement of pre-institution mediation in a commercial suit. The plaintiffs sought a money decree for unpaid rent and damages. Distinguishing provisions of the CPC, the court found that proper procedures were not followed, particularly regarding notice to the defendants before the issuance of the attachment. The Commercial Court's orders failed to assess the prior payments made by the defendants and incorrectly mandated payments from a date prior to when the suit was instituted, necessitating remand for proper proceedings. (Paras 12, 13, 14)

(B) Legal Proceedings - Appellate Review - The court emphasized the need for fair hearings and adherence to procedural safeguards, asserting that an order must be set aside if it lacks justifiable reasons or fails to provide due process to involved parties. The appellate court remains neutral and does not opine on the merits of the case during review. (Paras 10, 11, 16)

Facts of the case:
This case arises from a commercial ejectment action initiated by plaintiffs against defendants regarding rental disputes. The Commercial Court issued orders for conditional attachment of the defendants' properties and monetary damages, prompting the defendants to challenge these orders.

Findings of Court:
The court found that the Commercial Court's orders lacked the necessary scrutiny and failed to adhere to procedural norms, warranting a remand for proper evaluation and opportunity for the defendants to present their case.

Issues: The principal issues included whether the Commercial Court should have issued conditional attachment orders without providing notice to the defendants and whether the pre-institution mediation requirement was applicable.

Ratio Decidendi: The court ruled that procedural adherence is crucial for the validity of judicial orders, highlighting the need for notices and hearings in cases of potential coercive actions.

Result: The petition is allowed, and the impugned orders are set aside, remanding the matter back for fresh proceedings.

Table of Content
1. overview of reliefs sought in writ petition. (Para 3 , 4)
2. analysis of applications and court's reasoning. (Para 6 , 9 , 10)
3. contentions of petitioners and respondents. (Para 7 , 8)
4. ruling on necessity for fresh hearings. (Para 12 , 14)
5. final order and remittance to lower court. (Para 16)

ORDER :

PRADEEP SINGH YERUR, J.

1. Heard learned senior counsel - Sri Suresh Lokre alongwith learned counsel - Sri Shravan S. Lokre for petitioner and learned Counsel - Sri S.V. Giridhar for Respondent Nos.1 and2.

2. Parties shall be referred to as per their ranking before the Commercial Court.

3. This petition is filed by the petitioners/defendant Nos.1 and 2 seeking the following reliefs:

"a) Issue a writ of certiorari or of any other nature to set aside the impugned orders passed under I.A No.1 and 2 by the XI Additional District and Sessions Judge (dedicated commercial court) Bangalore rural district, Bangalore dated 24/06/2025 in commercial O.S.No.134/2025 (ANNEXURE-A)

b) Issue a Writ of Mandamus or any other nature directing the XI Additional District and Sessions Judge (dedicated commercial court) Bangalore rural district, Bangalore dated 24/06/2025 in Commercial O.S. No.134/2025 to return the plaint and direct the compliance of Pre- Institution Mediation as contemplated under Sec.12-A of the Commercial Courts Act.

c) Award the costs and grant such other relief(s) as this Hon'ble Court may deem fit and necessary in the above Writ Petition in the interest of justice and equity."

4. The respondents/plaintiffs filed a suit against the petitioners/defendants in Commercial O.S. No.134/2025 seeking the following reliefs.

"Wherefore, the Plaintiffs pray that this Hon'ble Court may be pleased to pass a Judgement and Decree in favour of the Plaintiffs and against the Defendants as under:

(a) Decree of Ejectment directing the Defendants to quit and deliver the vacant possession of the Schedule Property forthwith, failing which the Plaintiffs shall be at liberty to secure the vacant possession of the Schedule Property through the process of the Court at the cost of the Defendants;

(b) A Money Decree directing the Defendants to pay to the Plaintiffs a sum of Rs.44.27,940/ [Rupees Forty Four Lakhs Twenty Seven Thousand Nine Hundred and Forty Only] towards the arrears of rent, damages and interest due to the Plaintiffs on account of the delay in payment of the rents and damages together with current and future interest thereon @ 24% per annum with effect from the date of the institution of the suit till the date of payment in entirety:

(c) A Decree of Damages directing the Defendants to effect payment of a sum of Rs.4,50,000/- [Rupees Four Lakh Fifty Thousand Only] per month or part thereof to the Plaintiffs for the use and occupation of the Schedule Property post the termination of tenancy as "tenant of sufferance" from the date of institution of the suit till the delivery of the vacant possession of the Schedule Property, failing which a Money Decree be passed for the payment of the same together with current and future interest thereon @ 24% per annum to be computed with effect from the respective due dates of the damages till the date of realisation;

(d) Pass an Order for an enquiry for payment of additional mesne profits in an appropriate Final Decree Proceedings in terms of Order XX Rule 12 of the Code of Civil Procedure, to be computed from the date of filing of this suit till the date of delivery of possession of the Schedule Property in excess @ 4,50,000/- [Rupees Four Lakh Fifty Thousand Only] per month or part thereof with current and future interest @24% per annum;

(e) For an Order as to the costs of the present proceedings, and

(f) For such other Order/Orders as this Hon'ble Court deems fit for grant under the circumstances of the case;

in the interest of justice and equity."

5. Along with the plaint, the plaintiff filed two applications - I.A. No.I and I.A. No.II.

5.1 I.A. No.I is filed under Order XXXVIII Rule 5 r/w Section

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