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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 19TH DAY OF APRIL, 2022
PRESENT
THE HON’BLE MR. RITU RAJ AWASTHI, CHIEF JUSTICE
AND
THE HON’BLE MR.JUSTICE S.R.KRISHNA KUMAR
COMMERCIAL APPEAL NO.120 OF 2022
BETWEEN:
SMT. ARCHANA ATHERY,
AGED ABOUT 50 YEARS,
D/O N.K. MURTHY,
NO.351, 1ST A CROSS ROAD,
IV BLOCK, BASAVESHWARANAGAR,
WEST OF CHORD ROAD EXTN.,
III STAGE, BENGALURU - 560 079.
... APPELLANT
(BY SRI V.B. SHIVA KUMAR, ADVOCATE)
AND:
1 .
KARNATAKA STATE FINANCIAL CORPORATION,
(A BODY CORPORATE
ESTABLISHED UNDER THE STATE FINANCIAL
CORPORATION ACT NO. LXIII OF 1951)
HAVING ITS HEAD OFFICE AT
NO.1/1 THIMMAIAH ROAD,
BENGALURU – 560 052.
REPRESENTED BY ITS DEPUTY MANAGER,
(RECOVERY -II).
2 .
M/S MATHRU POLYMERS PVT LTD,
A PRIVATE LTD COMPANY INCORPORATED UNDER
THE PROVISIONS OF THE COMPANIES ACT, 1956
HAVING THE REGISTERED OFFICE AT
MATHRUCHAYA, 787, 61ST CROSS,
5TH BLOCK, RAJAJINAGAR,
BENGALURU – 560 010.
REP BY ITS MANAGING DIRECTOR.
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3 .
SRI G. RAMESH ATHREY,
AGED ABOUT 42 YEARS,
S/O A.R. GOPAL RAO,
MATHURCHAYA, NO.351,
1ST A CROSS, III STAGE, 4TH BLOCK,
BASAVESHWARANAGARA,
BENGALURU – 560 079.
4 .
SRI G. SRINIVASA ATHREY
AGED ABOUT 40 YEARS,
S/O A.R. GOPAL RAO,
MATHRUCHAYA, NO.351,
1ST A CROSS, III STAGE, 4TH BLOCK,
BASAVESHWARANAGARA,
BENGALURU – 560 079.
5 .
SRI A R GOPAL RAO
AGED ABOUT 72 YEARS,
S/O A. RAMA RAO
MATHRUCHAYA, NO.351,
1ST A CROSS, III STAGE, 4TH BLOCK,
BASAVESHWARANAGARA,
BENGALURU – 560 079.
6 .
SMT A LEELAPAL
AGED ABOUT 65 YEARS,
W/O A.R. GOPAL RAO
MATHRUCHAYA, NO.351,
1ST A CROSS, III STAGE, 4TH BLOCK,
BASAVESHWARANAGARA,
BENGALURU – 560 079.
... RESPONDENTS
THIS
COMMERCIAL
APPEAL
IS
FILED
UNDER
CHAPTER 4 SECTION 13(1) A OF THE COMMERCIAL
COURTS ACT, PRAYING TO SET ASIDE THE ORDER DATED
04/01/2022 ON I.A. IN COM.EX.NO. 863/2016, PASSED BY
THE LXXXV ADDITIONAL CITY CIVIL AND SESSIONS
JUDGE,
BENGALURU.
APPLICATION
FILED
BY
THE
OBJECTOR
UNDER
21
RULE
97
OF
CPC
AND ETC.
THIS APPEAL COMING ON FOR ADMISSION THIS DAY,
S.R.KRISHNA KUMAR J. DELIVERED THE FOLLOWING:
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JUDGMENT
This appeal is directed against the impugned order
dated 04.01.2022 passed in Com.Ex.No.863/2016 whereby,
the application filed by the appellant under Order 21 Rule
97 of Code of Civil Procedure (for short ‘CPC’) seeking stay
of further proceedings in the execution petition pending
disposal of the application under Order 21 Rule 97 of CPC
was rejected by the Commercial Court.
2.
Heard learned counsel for the appellant and
perused the material on record.
3.
In addition to reiterating various contentions
urged in the appeal and referring to the material on record,
learned counsel for the appellant submits that the appellant
has acquired right, title, interest and possession over the
schedule property under the registered gift deed dated
25.02.2002 executed by her husband Sri.G.Srinivasa
Athrey in her favour, pursuant to which she has become the
absolute owner in lawful and peaceful possession and
enjoyment of the schedule property. It is submitted that
the appellant has independent right, title, interest and
possession over the schedule property and the liability of
M/s. Mathur Polymers
Private Limited which
is an
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independent juristic and legal entity cannot be fastened
either upon her husband Sri.G.Srinivasa Athrey or the
appellant herein and consequently, the application filed by
the appellant under Order 21 Rule 97 of CPC seeking stay
of further proceedings pending disposal of the application
under Order 21 Rule 97 of CPC was incorrectly rejected by
the
Commercial
Court.
It
is
also
submitted
that
notwithstanding dismissal of the earlier application under
Order 21 Rule 58 CPC filed by the appellant, the said order
will not come in the way of the appellant protecting her
right, title, interest and possession over the schedule
property.
4.
Though the aforesaid contentions have been
urged by the learned counsel for the appellant, the material
on record discloses that the execution proceedings have
been
initiated
by
respondent
No.1-Karnataka
State
Financial Corporation, in which it has sought for attachment
and sale of movable/immovable property of the Judgment
Debtors. There is no gainsaying the fact that in order to
invoke Order 21 Rule 97 CPC, there has to be a decree for
possession of immovable property and the prayer in the
execution proceedings seeking to enforce the said decree
for recovery of possession of the immovable property.
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5.
In the instant case, the records relating to the
execution proceedings clearly indicate that there is no
decree/order for possession of the schedule property and
consequently, the application under Order 21 Rule 97 of
CPC
filed
by
the
appellant
claiming
to
be
an
objector/obstructor would not be maintainable.
6.
Under these circumstances, we do not find any
merit in the appeal and the same is hereby dismissed.
7.
The pending interlocutory application stands
disposed of.
Sd/-
CHIEF JUSTICE
Sd/-
JUDGE
VM
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