JUDGEMENT
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(1.) Leave granted.
(2.) These are appeals by way of special leave under Article
136 of the Constitution of India against the judgment and
order dated 25.08.2010 of the High Court of Karnataka in
MFA No.4060 of 2010 and in M.C. No12036 of 2010 and in
M.C. No.12036 of 2010.
(3.) The relevant facts briefly are that Aditya Birla Nuvo
Ltd., respondent no.1 in both the appeals, filed a suit O.S.
No.1533 of 2010 against Liberty Agencies, a partnership
firm and its partners, in the Court of the City Civil Judge at
Bangalore. The case of the respondent no.1 in the plaint
was as follows: The respondent no.1 was engaged in the
business of readymade garments and accessories under
various reputed brand names and in the year 1995 had
appointed Liberty Agencies as an agent to conduct its
business of readymade garments and accessories with the
reputed brand name 'Louis Philippe'. Thereafter, on
02.03.2005 respondent no.1 entered into a fresh agreement
with Liberty Agencies under which Liberty Agencies agreed
to sell the products of the respondent no.1 in the suit
schedule property and also agreed to retain the possession
of the suit schedule property until the expiry of the term of
agreement and Liberty Agencies was not to sell any other
articles or goods other than that supplied by the respondent
no.1. Under the agreement dated 02.03.2005 (for short 'the
agreement'), Liberty Agencies was entitled to a fixed
commission of Rs.7,50,000/- per month and by an
addendum dated 01.07.2008 the fixed commission payable
to Liberty Agencies was increased to Rs.9,62,500/-.
Thereafter, the respondent no.1 notified to Liberty Agencies
various breaches of the terms and conditions of the
agreement but Liberty Agencies did not set right the
breaches. As a result, the respondent no.1 suffered huge
financial losses. The respondent no.1 issued a legal notice
on 06.02.2010 calling upon Liberty Agencies to comply with
the terms of the agreement. Liberty Agencies, however, sent
a letter dated 26.02.2010 claiming that the constitution of
the partnership firm has changed and that its partner A.C.
Thirumalaraj had retired and that A.C. Thirumalaraj as the
owner of the suit schedule property had terminated the
tenancy of the suit schedule property in favour of Liberty
Agencies and initiated a collusive eviction proceeding with
an intention to defeat the claim of the respondent no.1. The
respondent no.1 thus prayed for specific performance of the
agreement and in the alternative for damages for expenses
and losses amounting to Rs.20,12,44,398/- if the specific
performance of the agreement was refused by the Court.;
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