Aria Brew And Dine Private Limited Vs Century Corbel (Karnataka High Court)
The Karnataka High Court partly allowed an appeal filed by Aria Brew and Dine Private Limited against the Commercial Court judgment that dismissed its recovery suit and decreed Century Corbel’s counterclaim. Aria had sought recovery of ₹26,75,38,342 with 12% interest, while Century had sought rent arrears, amounts under the Supplementary Agreement and vacant possession of the leased premises.
Aria contended that the registered Lease Deed dated 31.10.2018, Supplementary Agreement dated 02.11.2018 and Modification Deed dated 30.12.2019 were entered into under undue influence and that amounts paid under them were refundable. The High Court declined to interfere with the finding that Aria failed to establish undue influence, fraud or coercion. It noted that the documents were registered and that, apart from the testimony of Aria’s director, no other witness or contemporaneous evidence was produced. Relying on Prem Singh and Others vs. Birbal and Others, the Court also referred to the presumption of valid execution of a registered document.
The High Court affirmed the direction requiring Aria to vacate and hand over the leased premises. It noted that Clause 8.1 of the Lease Deed permitted termination upon continuous default in payment of rent or other charges and that Century had invoked the clause through its reply notice dated 06.08.2020.
