THIS COMMERCIAL APPEAL IS FILED UNDER SECTION 13(1A) OF THE COMMERCIAL COURTS ACT, 2015 R/W SECTION 37(1)(C) OF THE ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO CALL FOR RECORDS IN COM.A.S.NO. 172/2019 ON THE FILE OF LXXXIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU (CCH-84) AND RECORDS IN A.C.NO. 146/2018 ON THE FILE OF ARBITRATION CENTRE, BENGALURU. SET ASIDE THE JUDGMENT DATED 17/07/2021 PASSED BY THE LXXXIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU (CCH-84) IN A.S.NO. 172/2019 AND ARBITRAL AWARD DATED 28/08/2019 PASSED BY THE SOLE ARBITRATOR IN A.C.NO. 146/2018 AND CONSEQUENTLY, DISMISS THE CLAIM STATEMENT FILED BY THE RESPONDENTS AND ALLOW THE COUNTER CLAIM OF THE APPELLANT, AND PASS SUCH OTHER ORDER AS THIS HON'BLE COURT DEEMS FIT TO GRANT IN THE INTEREST OF JUSTICE AND EQUITY.

THIS APPEAL HAVING BEEN RESERVED FOR JUDGMENT ON 25.03.2026, COMING ON FOR PRONOUNCEMENT OF JUDGMENT THIS DAY, THE COURT DELIVERED THE FOLLOWING:

CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN & HON'BLE MS. JUSTICE TARA VITASTA GANJU

CAV JUDGMENT

(PER: HON'BLE MS. JUSTICE TARA VITASTA GANJU)

TABLE OF CONTENTS

I. PREFACE: 3

II. BRIEF FACTS: 4

III. IMPUGNED JUDGMENT: 7

IV. CONTENTIONS OF THE APPELLANTS : 12

V. CONTENTIONS OF THE RESPONDENTS: 15

VI. ISSUE FOR CONSIDERATION : 17

VII. ANALYSIS AND FINDINGS: 17

VIII. CONCLUSION : 55

I. PREFACE:

1. This Commercial Appeal under Section 13(1A) of the Commercial Courts Act, 2015 read with Section 37 (1) (c) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “A&C Act”), impugns a Judgment dated 17.07.2021 passed in COM.AS.No.172/2019 (hereinafter referred to as “Impugned Judgment”) by the LXXXIII Additional City Civil And Sessions Judge at Bengaluru City (CCH-84) (hereinafter referred to as “the Commercial Court”), which has dismissed the Petition under Section 34 and 37 of the A&C Act filed by the appellant, and upheld the Arbitral Award dated 28.08.2019 (hereinafter referred to as “Arbitral Award”) with costs, passed by the Sole Arbitrator in favour of the claimants/respondents. The Counter Claim filed by the appellant has also been dismissed. This Appeal seeks to challenge both dismissals.

II. BRIEF FACTS:

2. This Court has, by the order dated 01.09.2021, admitted the appeal and granted a stay of operation and execution of the Impugned Judgment and the Arbitral Award subject to the appellant depositing a sum of Rs.32,61,705/- within two weeks from the date of the order.

3. The brief relevant facts are that a claim petition was filed by claimants/respondent Nos.1 to 3 on 28.09.2018 against the appellant seeking a direction to the appellant, to pay the claimants/respondent Nos.1 to 3 a sum of Rs.1,20,55,753/- along with interest at the rate of 18% per annum from the date of claim petition till the date of payment. Directions were also sought to declare that for the period of the subsistence of the Deed of Reconstitution dated 13.05.2015 (hereinafter referred to as “the Reconstitution Deed”), the appellant is bound and liable to pay monthly remuneration to the claimants/respondent Nos.1 to 3 along with interest. The prayers as set out in the Statement of Claim are extracted below:

“a) directing the Respondent to pay the Claimants a sum of Rs.1,20,55,753/- (Rupees One Crore Twenty Lakhs Fifty Five Thousand Seven Hundred and Fifty Three) together with interest thereon at the rate of 18% from the date of the Claim Petition until payment;

(b) declaring that, for the period during the subsistence of the Deed of Reconstitution, dated 13.05.2015, the Respondent is bound and liable to pay monthly remuneration to the Claimants in the manner provided therein, failing which the Respondent is liable to pay the same together with interest at the rate of 18% per annum;

(c) directing the Respondent to furnish to the Claimants, promptly on demand, all information and records pertaining to the partnership firm, M/s. JBS Nursing Home;

(d) directing the Respondent to indemnify a