Karnataka HC dismisses Plaint in terms of Proceedings pending before NCLT [Read Order]

The Karnataka High Court dismissed the plaint in terms of proceedings pending before National Company Law Tribunal (NCLT), since that was objected to by the petitioner and the matter being at the stage of arguments, the court disposed of the petition, reserving liberty to the respondent-plaintiff to urge all the contentions that he is wanting to draw into as additional written statement before the concerned Court.

Zillion Infraprojects Private Limited, the petitioner - defendant in Commercial O.S.No.27279 of 2009 is at the doors of the Court calling in question an order passed on 31-05-2024 on IA No. 1 of 2024, whereby the application filed by the respondent-plaintiff is allowed, permitting filing of additional written statement by the plaintiff.

Sri C K Nandakumar, senior counsel appearing for petitioner and Sri C P Ayyappa,counsel appearing for respondent. The lis between the two has a checkered history, begins in the year 2009 and lands up in a CIRP process after the parties are before the National Company Law Tribunal (‘NCLT’). Before the concerned Court, the defendant filed its counter claim. The matter reached this Court and the counter claim was permitted to be continued and not the plaint in terms of the proceedings pending before the NCLT. The issue is not on the merit of the matter.

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Now, in the light of the fact that the plaintiff's suit was not permitted and the defendant's counter claim was permitted to be tried, the plaintiff files an application seeking a new plea to be incorporated in the plaint by way of additional written statement. The concerned Court allows the application and permits raising of a new plea by way of additional written statement, at the stage when the matter was set for arguments of the case. At that juncture, the defendant before the concerned Court, is before this Court, calling in question the said order, permitting filing of additional written statements in the counter claim. The submissions are made by both the counsels with regard to the merit of the matter.

In the light of the controversy being with regard to raising of a new plea or additional written statement in the counter claim that was permitted to be tried by the Court. Since that being objected to by the petitioner and the matter being at the stage of arguments, the court dispose the petition, reserving liberty to the respondent-plaintiff to urge all the contentions that he is wanting to draw into as additional written statement before the concerned Court, as the matter before the concerned Court is at the stage of arguments.

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A single bench of Justice M.Nagaprasanna observed that such arguments are advanced by the plaintiff before the concerned Court taking cue from the plaint that is filed or the additional written statement that is sought to be preferred before the concerned Court. The concerned court shall answer the same in accordance with law and take the suit to its logical conclusion.

Since the matter is of the year 2009,the court directed the concerned Court to conclude the proceedings within an outer limit of 3 months from the date of receipt of the copy of the order. While allowing the petition, the order dated 31-05-2024 of the concerned Court impugned was quashed.

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