BEST SELLERS RETAIL INDIA PVT LTD Vs. ADITYA BIRLA NUVO LTD
LAWS(SC)-2012-5-37
SUPREME COURT OF INDIA (FROM: KARNATAKA)
Decided on May 08,2012

BEST SELLERS RETAIL (INDIA) PVT. LTD Appellant
VERSUS
ADITYA BIRLA NUVO LTD Respondents

JUDGEMENT

- (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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