1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 13TH DAY OF SEPTEMBER, 2022
BEFORE
THE HON’BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO.14094 OF 2022 (GM-CPC)
BETWEEN:
UNITED SPIRITS LIMITED
A COMPANY INCORPORATED UNDER THE
COMPANIES ACT, 1956, HAVING ITS REGISTERED
OFFICE AT, UB TOWER, NO. 24,
VITTAL MALLYA ROAD, BANGALORE 560 001.
REP BY ITS AUTHORIZED SIGNATORY,
MR. SHRIVARDHAN DESHPANDE,
SENIOR GENERAL MANAGER
AGED ABOUT 38 YEARS
...PETITIONER
(BY SRI C.K.NANDA KUMAR, SENIOR COUNSEL FOR
SRI RAGHURAM CADAMBI, ADVOCATE)
AND:
M/S IDX INDIA DISPLAY PRIVATE LIMITED
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, 2013, HAVING ITS
REGISTERED OFFICE AT 2ND FLOOR,
ESTEEM REGENCY, 6, RICHMOND ROAD,
BANGALORE 560025,
REP. BY ITS AUTHORIZED SIGNATORY,
MR. AUGISTINE HARVEY LOPEZ
REPRESENTED BY ITS DIRECTOR.
…RESPONDENT
(BY SRI UDAY SHANKAR R.M., ADVOCATE FOR C/R)
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THIS PETITION IS FILED UNDER ARTICLE 227 OF THE
CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ORDER DTD
05.07.2022 PASSED BY THE HONBLE LXXXV ADDL. CITY CIVIL AND
SESSIONS JUDGE AT BENGALURU (CCH-86) (COMMERCIAL COURT)
VIDE ANNX-A, DISMISSING THE MEMO DATED 05.07.2022, AND
THE ORDER DTD 05.07.2022 PASSED BY THE HONBLE LXXXV
ADDL. CITY CIVIL AND SESSNIONS JUDGE AT BENGALURU (CCH-
86) (COMMERCIAL COURT), AS PART OF ITS ORDER SHEET VIDE
ANNX-B,
BOTH
PASSED
IN
THE
PROCEEDINGS
IN
COM.O.S.NO.4266/2018.
THIS PETITION HAVING BEEN HEARD AND RESERVED FOR
ORDERS ON 12.09.2022, COMING ON FOR PRONOUNCEMENT OF
ORDER THIS DAY, THE COURT MADE THE FOLLOWING:
The captioned writ petition is filed by the defendant
questioning the order of the Commercial Court passed on a
memo dated 05.07.2022.
2.
The respondent has instituted a recovery suit in
O.S.No.4266/2008. Later the suit was transferred to the
Commercial
Court
and
renumbered
as
Commercial
O.S.No.4266/2018. Pending consideration of suit, it appears
3
that the matter was referred to Lok Adalat and the very
Presiding Officer acting as a Conciliator tried to assist the
parties to arrive at an amicable settlement. Since the same
did not materialize, it appears the matter was sent back to the
Court for adjudication. It is in this background, the present
petitioner filed a memo requesting the Presiding Officer to
place the file before Hon’ble Principal District Judge to allot the
present suit to some other Commercial Court as the Presiding
Officer had participated in conciliation proceedings.
3.
The
learned
Judge
having
examined
the
contentions raised in the memo, was of the view that no
grounds are made out in the memo which would compel the
Presiding Officer to place the present suit before the Principal
District Judge for necessary orders. The learned Judge has
also taken strong objection to the manner in which the counsel
appearing for the defendant has pursued the case by filing a
memo seeking transfer. Learned Judge was of the view that
the counsel who filed the memo representing herself as an
4
Advocate for defendant found that there is no authorisation in
her favour and therefore, learned Judge was of the view that
she was not competent to file the present memo seeking
transfer of the case. Therefore, learned Judge was of the view
that the junior counsel who had moved a memo was one
without any authorisation by the defendant. Therefore, it is in
this background, learned Judge has come to conclusion that
memo needs to be rejected by imposing heavy cost.
Consequently, memo is rejected by imposing a cost of
Rs.25,000/-.
4.
Heard learned Senior Counsel and learned counsel
appearing for the respondent/plaintiff. Perused the order
under challenge.
5.
Insofar as merits of the case are concerned,
learned Senior Counsel would fairly concede, though various
grounds are raised in the present writ petition by placing
reliance on the judgment of the Hon’ble Apex Court in the case
5
of AFCONS Infrastructure Limited and Another vs.
Cherian Varkey Construction Company Private Limited1.
However, the question that needs to be examined by this
Court is whether the learned Judge while rejecting the memo
was justified in imposing a cost of Rs.25,000/-.
6.
Insofar as the Judge in-charge of the case assisting
the parties for negotiations, the question is whether he can
deal
with
the
adjudication
of
the
matter
to
avoid
apprehensions of bias and prejudice. In the present case on
hand, such a situation would not warrant. In the present case
on hand, the learned Judge found that though the matter was
referred for amicable settlement before the Lok Adalat, the
official appearing on behalf of respondent-Company however
made a submission that he had joined the company recently
and he needs some time to verify with the company in regard
to settlement issue and accordingly, time was sought.
Therefore, even otherwise the material on record does not
1 (2010) 8 SCC 24
6
indicate that parties were relegated for extensive deliberations
with effective assistance with the Presiding Officer as a
Conciliator. Therefore, the judgment cited by the learned
Senior Counsel would not squarely apply to the present case
on hand.
7.
Now coming to the cost imposed by the learned
Judge, though several factors have led to imposing cost by the
learned Judge, however, having regard to the facts and
circumstances of the case on hand, I am of the view that the
cost imposed was unwarranted in the present case on hand.
If the junior member of the Bar who is part of the office, on
instructions, by the counsel on record has moved a memo, she
cannot be found fault with.
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