Case Note & Summary
The matter concerns a writ petition filed before the High Court of Karnataka under Articles 226 and 227 of the Constitution of India challenging an order dated 19-07-2024 passed by the Commercial Court in Commercial O.S. No.1495 of 2023. The petitioners, who are defendants 3 to 5 and 10 to 24 in the suit, seek their deletion from the array of defendants. The background involves a dispute between the first respondent/plaintiff, Aptamitra Consulting Private Limited, and the second respondent/defendant No.1, Frenustech Pvt. Ltd., relating to breach of an NDA and MSPA executed in 2022. The plaintiff alleged that it introduced the second respondent to potential M&A opportunities and facilitated H1B visa processes for employees, which increased the second respondent's valuation, but the second respondent unilaterally withdrew, causing loss. The plaintiff claimed damages of Rs. 40 crores, later reducing to Rs. 32 crores, and after failed mediation, filed the commercial suit arraying the petitioners as defendants. The petitioners argued that they were not parties to the agreements and no relief was claimed against them, thus they should be deleted. The Commercial Court rejected the applications under Order 1 Rule 10 CPC. The writ petition was heard and reserved for orders. The judgment text ends with the submissions of the parties, and the final decision of the High Court is not included.
Headnote
A) Civil Procedure - Joinder and Non-joinder of Parties - Deletion of Defendants - Code of Civil Procedure, 1908, Order 1 Rule 10 - The Commercial Court rejected applications by defendants 3 to 5 and 10 to 24 seeking deletion from the array of parties in a commercial suit for breach of Non-Disclosure Agreement (NDA) and Managed Services Partner Agreement (MSPA). The defendants contended that they were not signatories to the agreements, no relief was claimed against them, and no cause of action was made out. The writ petition challenged the correctness of the order. (Paras 1-5)
Issue of Consideration
Whether the Commercial Court erred in rejecting applications under Order 1 Rule 10 of the Code of Civil Procedure, 1908, for deletion of defendants in a suit alleging breach of non-disclosure and service agreements, where the defendants claimed lack of privity of contract and that no relief was sought against them.
