PRESENT THE HON'BLE MR N v. ANJARIA, CHIEF JUSTICE AND THE HON'BLE MR JUSTICE K. V. ARAVIND COMMERCIAL APP
Case Details
- 1 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF APRIL, 2025 PRESENT THE HON'BLE MR N. V. ANJARIA, CHIEF JUSTICE AND THE HON'BLE MR JUSTICE K. V. ARAVIND COMMERCIAL APPEAL NO. 234 OF 2025 …APPELLANT BETWEEN: 1. M/S. OSWAL MINERALS LIMITED
Legal Reasoning
HAVING ITS REGISTERED OFFICE AT: NO. 1034, 2ND FLOOR DR. RAJKUMAR ROAD, 4TH BLOCK RAJAJINAGAR, BENGALURU KARNATAKA - 560 010 REPRESENTED BY ITS AUTHORISED REPRESENTATIVE MR. K. ANAND KUMAR (BY SRI. DHRUV M PATWARI, ADVOCATE) AND: 1. M/S. BHARATH HI-TECCH BUILDERS PRIVATE LIMITED HAVING ITS REGISTERED OFFICE AT NO. 304 AND 306, 3RD FLOOR, GOLD TOWER NO. 50, RESIDENCY ROAD BANGALORE KARNATAKA - 560 025 REPRESENTED BY ITS AUTHORISED REPRESENTATIVE MR. VANAPALLI REVANTH KUMAR 2. UNION BANK GANDHINAGAR Digitally signed by AMBIKA H B Location: High Court of Karnataka - 2 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 BANGALORE SEVAKSHETRA NO. 14, GROUND FLOOR 1ST MAIN, GANDHINAGAR BENGALURU - 560 009 REPRESENTED BY ITS MANAGER 3. KOTAK MAHINDRA BANK LIMITED M.G. ROAD, BANGALORE KARNATAKA - 560 001 REPRESENTED BY ITS MANAGER …RESPONDENTS THIS COMMERCIAL APPEAL IS FILED UNDER SECTION 13 (1-A) OF THE COMMERCIAL COURTS ACT, 2015 PRAYING TO SET ASIDE THE ORDER DATED 21.03.2023 ON I.A. NO.2 AND I.A. NO.3 GRANTED BY THE HON'BLE COMMERCIAL COURT BY LXXXII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, (CCH-83) IN COM.OS NO.420/2025 (ANNEXURE - C) & ETC. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE N. V. ANJARIA and HON'BLE MR JUSTICE K. V. ARAVIND ORAL JUDGMENT (PER: HON'BLE THE CHIEF JUSTICE MR. JUSTICE N. V. ANJARIA) This appeal seeks to set aside the order dated 21.03.2025 passed in Interim Application Nos.II and III granted by the commercial court presided by 82nd Additional City Civil and Sessions Judge in Commercial Original Suit No.420 of 2025. It is - 3 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 further prayed to dismiss the suit of respondent No.1 herein on the ground that respondent No.1-plaintiff does not have the locus standi in the facts of the case. 2. The order dated 21.03.2025 which is brought under challenge reads as under, "The Defendant No.2 hereby restrained by way of order of ad-interim injunction from making any payment/disbursal under the following letters of credit: 1. Credit No.35310M11D2412201, dtd. 16.11.2024 for an bill amount of Rs.2,07,98,947/-. 2. Credit No.35310M11D2412487, dtd. 25.11.2024 for an bill amount of Rs.2,07,98,947/-. 3. Credit No.35310MD2413064, dtd. 10.12.2024 for an bill amount of Rs.2,06,68,531/-, till next date of hearing. The Defendant No.3 hereby restrained by way of order of ad-interim injunction from realizing the amounts under the following letters of credit: 1. Credit No.35310M11D2412201, dtd. 16.11.2024 for an bill amount of Rs.2,07,98,947/-. 2. Credit No.35310M11D2412487, dtd. 20.11.2024 for an bill amount of Rs.2,07,98,947/-. 3. Credit No.35310M11D2413064, dtd. 10.12.2024 for an bill amount of Rs.2,06,68,531/- till next date of hearing. - 4 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 Petitioner shall comply the provisions of Order XXXIX Rule 3(a) and (b) of CPC by 24.03.2025. Issue ad-interim of temporary injunction, suit summons to the Defendants through court and RPAD, if steps taken, returnable by 05.06.2025." 3. The suit is filed by respondent No.1-plaintiff to declare that the letters of credit dated 16.11.2024, 25.11.2024 and 10.12.2024 are void and inoperative. The next prayer in the suit is for granting decree of permanent perpetual injunction restraining defendant No.2 from making any payment or dispersing any amount under the letters of credit aforementioned. It is also the prayer to pass a decree in the nature of mandatory injunction directing the defendants to jointly and severally return all original and other documents connected with the transactions subsequent to proforma invoices and the letters of credit. The plaintiff seeks damages to the extent of Rs.6,45,525/- with 18% interest per annum from the date of arising from 24.10.2024 till realisation. 3.1 The case of the plaintiff was that the appellant herein did not physically deliver the goods which were lying in the godown under the control of defendant No.1-appellant. - 5 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 4. The stand of the defendant-appellant as sought to be highlighted by learned advocate Mr. Dhruv M. Patwari appearing for the appellant is that the condition in the agreement between the parties regarding clearance which was Condition No.7, provided that the sale was a warehouse sale and the buyers were to make their own arrangement for obtaining delivery of the goods from the customs and port authorities and make the payment for customs duty port warehouse charges, wharfage handling and transport charges and for clearance of the material at their own cost. 4.1 On the basis of this condition it was sought to be submitted that the appellant-defendant was not obliged to give the physical delivery at the place of the plaintiff-buyer. In this context it was submitted that the injunction granted by the commercial court below in favour of the plaintiff deserves to be vacated. 5. The court does not find it necessary to go into the merits of the submissions of either side in view that admittedly the impugned order is an ad interim order of granting temporary injunction. The returnable date is fixed to be 05.06.2025. - 6 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 5.1 When the order is ad interim and the application for injunction is yet to be finally decided by the court below, after considering the submissions of both the sides, this court is not inclined to exercise the appellate jurisdiction. 6. Interest of justice would be subserved if the following directions and observations are made, (i) It will be open for either of the party to move an application for preponement of the hearing, which shall be duly considered by the court below. (ii) The court below shall take up the interim injunction application finally and decide the same in accordance with law and on its own merits. (iii) All the contentions of both the sides are open to be agitated before the court below in respect of grant or otherwise of the ad interim injunction. (iv) It is observed that this court has not expressed any opinion on the merits of the case of the either side. - 7 - NC: 2025:KHC:16734-DB COMAP No. 234 of 2025 6.1 It is open for the appellant and the respondents to raise their contentions in respect of the ad interim temporary injunction. 7. The appeal is disposed of in the above terms. Sd/- (N. V. ANJARIA) CHIEF JUSTICE Sd/- (K. V. ARAVIND) JUDGE AHB List No.: 1 Sl No.: 29