Smt.Jayashree N Kumar vs. M/S Kavi Basaveshwara Silk Traders

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MFA/2996/2025HC KarnatakaGSTCNR KAHC01026572202510 June 2025Bench: ACTING CHIEF JUSTICE,C M JOSHI4 pages
AI SummaryDismissed

Facts

The appellants, Smt. Jayashree N Kumar and Sri Rakshith N Kumar, filed a Miscellaneous First Appeal (MFA) before the High Court of Karnataka. This appeal was directed against an order dated March 17, 2025, passed by a Sole Arbitrator at the Arbitration and Conciliation Centre, Bengaluru. The Arbitrator's order had rejected an application filed by the appellants under Order 16 Rule 6 read with Section 151 of the Code of Civil Procedure (CPC). The application sought to summon documents from the custody of respondents 1, 2, and 4. The appellants contended that the dispute involved accounts of a partnership firm and was a commercial dispute, making the appeal maintainable before the Commercial Court.

Held

The Court noted the memo filed by the appellants seeking withdrawal of the appeal. The memo detailed the appellants' submission that the appeal was maintainable before the Commercial Court, as the dispute pertained to the accounts of a partnership firm, qualifying as a commercial dispute under the Commercial Courts Act. The appellants requested permission to withdraw the appeal with liberty to file it before the Commercial Court and sought the benefit of Section 14 of the Limitation Act. The Court accepted the memo and accordingly dismissed the appeal as withdrawn. It further held that if the appellants initiated proceedings before the concerned Court, they would be entitled to the benefit of Section 14 of the Limitation Act for the period between the filing and withdrawal of the appeal. Pending interlocutory applications were disposed of as they did not survive.

Key Issues

1. Whether the appeal filed before the High Court under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996, is maintainable, considering the nature of the dispute and the definition of 'Court' under Section 2(e) of the Act? 2. Whether the appellants are entitled to the benefit of Section 14 of the Limitation Act, 1963, if they withdraw the present appeal and file a fresh appeal before the Commercial Court? Appellants' Arguments: The appellants argued that the dispute concerning the accounts of a partnership firm constitutes a commercial dispute as per Section 2(c)(xv) of the Commercial Courts Act, with a specified value exceeding Rs. 3 lakhs as per Section 2(i). They contended that the appeal was maintainable before the Commercial Court, and therefore, they sought permission to withdraw the present appeal to file it before the appropriate forum, requesting the benefit of Section 14 of the Limitation Act. Revenue/State's Arguments: The judgment does not record any specific arguments from the revenue or state.

Sections Cited

Section 37(2)(b), Section 151, Order 16 Rule 6, Section 2(e), Section 2(c)(xv), Section 2(i), Section 14

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
- 1 - HC-KAR NC: 2025:KHC:19760-DB MFA No. 2996 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JUNE, 2025 PRESENT THE HON'BLE MR V KAMESWAR RAO, ACTING CHIEF JUSTICE AND THE HON'BLE MR JUSTICE C M JOSHI MISCELLANEOUS FIRST APPEAL NO. 2996 OF 2025 (AA) BETWEEN: 1. SMT. JAYASHREE N KUMAR, W/O. LATE K.S. NATESH KUMAR, AGED ABOUT 49 YEARS. 2. SRI RAKSHITH N KUMAR, S/O. LATE K.S. NATESH KUMAR, AGED ABOUT 25 YEARS. BOTH ARE R/AT NO. 2, SREERAKSHE, 14TH MAIN ROAD, ATTIGUPPE, VIJAYANAGAR, BANGALORE-560 104. …APPELLANTS (BY SRI ASHOK B PATIL, ADVOCATE) AND: 1. M/S. KAVI BASAVESHWARA SILK TRADERS, GST NO. 29AAFFK2844P1ZQ, NO. 135, 2ND FLOOR, T.N.R. COMPLEX, AVENUE ROAD CROSS, BENGALURU-560 002. 2. SRI K.B SHIVARUDRASWAMY, S/O LATE BHADRAPPA, SINCE DECEASED. SMT. K.S. VEENA, D/O K.B. SHIVARUDRASWAMY, Digitally signed by NANDINI R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:19760-DB MFA No. 2996 of 2025 AGED ABOUT 49 YEARS, R/AT NO.1630/60, 1ST FLOOR, 6TH "A" MAIN ROAD, HAMPINAGAR, VIJAYANAGAR II STAGE, BENGALURU-560 104. 3. SRI K.S. SHIVAKUMARASWAMY, S/O. K.B. SHIVARUDRASWAMY, AGED MAJOR. 4. SMT. GEETHA S KUMAR, W/O. K.S. SHIVAKUMARASWAMY, AGED MAJOR. BOTH 3 & 4 ARE R/AT WALBRIDGE CLUSTERS APARTMENT, FLAT NO. FF6, SURVEY NO. 24/16-B2, OPP. STATE BANK OF MYSORE PAPAREDDY PALYA, NAGARBHAVI 2ND STAGE, BANGALORE-560 072. 5. SMT. K.S. REVARATHNAMMA, W/O. SRI. K.S. SHIVARUDRASWAMY, AGED MAJOR. "ANUGRAHA" NO. 1630/60 6TH "A" MAIN ROAD, HAMPINAGAR, VIJAYANAGAR II STAGE, BENGALURU-560 104. …RESPONDENTS THIS MFA IS FILED UNDER SECTION 37(2)(b) OF THE ARBITRATION AND CONCILIATION ACT, PRAYING TO SET ASIDE THE ORDER DATED 17.03.2025 PASSED IN A.C.NO.685/2023 BY THE SOLE ARBITRATOR BEFORE ARBITRATION AND CONCILIATION CENTRE, BENGALURU, AGAINST THE APPLICATION FILED UNDER ORDER 16 RULE 6 OF CPC R/W SEC.151 OF THE CPC. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:19760-DB MFA No. 2996 of 2025 CORAM: HON'BLE MR V KAMESWAR RAO, ACTING CHIEF JUSTICE and HON'BLE MR JUSTICE C M JOSHI

ORAL JUDGMENT (PER: HON'BLE MR V KAMESWAR RAO ,ACTING CHIEF JUSTICE)

Learned counsel for the appellants has filed a memo for withdrawal of the appeal and the same reads as under:

"The above appeal filed on 15-04-2025 under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996, is directed against the order dated 17-03-2025 of the learned Arbitrator rejecting the application under Order 16 Rule 6 r/w Section 151 CPC for summoning the documents from the custody of respondents 1, 2 and 4. It is submitted that, in view of definition of 'Court' under Section 2(e) of the Act, the appeal is maintainable in the instant case before the Commercial Court, since the dispute is in respect of the accounts of a partnership firm, is a commercial dispute as per Section 2(c) (xv) having the Specified Value exceeding Rs.3 lakhs in terms of Section 2(i) of the Commercial Courts Act.

In view of the above, the appellants may kindly be permitted to withdraw the above appeal with liberty to file an appeal before the Commercial Court, Bengaluru. The appellants may kindly be given the benefit of Section 14 of the Limitation Act, 1963. Hence, this Memo." HC-KAR NC: 2025:KHC:19760-DB MFA No. 2996 of 2025

2.

Memo is taken on record.

3.

Accordingly, the appeal is dismissed as withdrawn.

Suffice to state that if any proceedings are initiated by the appellants herein before the concerned Court, the appellants shall be entitled to the benefit of Section 14 to the Limitation Act for the period between the date of filing and the date of withdrawal of the appeal.

In view of withdrawal of the appeal, pending IAs do not survive for consideration. Hence, the same are disposed of. (V KAMESWAR RAO) ACTING CHIEF JUSTICE (C M JOSHI) JUDGE NR/- List No.: 1 Sl No.: 52

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.