High Court of Karnataka Dismisses Appeal by Company in Share Ownership Dispute — Respondent Declared Absolute Owner of 3,90,682 Equity Shares and Awarded USD 114,041 with Interest. The court affirmed the Commercial Court's decree under Section 13(1-A) of Commercial Courts Act, 2015, holding that the appellant failed to establish any error in the impugned judgment.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution

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2026-05-18 16:36:15

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Case Note & Summary

The appellant, Komtech Plastic Technologies India Private Limited, a company incorporated under the Companies Act, 1956, filed a commercial appeal under Section 13(1-A) of the Commercial Courts Act, 2015, challenging the judgment and decree dated 19.07.2025 (as corrected on 18.10.2025) passed by the LXXXVII Additional City Civil and Sessions Judge, Commercial Court, Bengaluru (CCH-88) in Com.O.S.No.8430/2018. The respondent, Zrii Technologies Inc., a Canadian company, had filed the suit seeking declaration of ownership of 3,90,682 equity shares of the appellant and recovery of USD 114,041 or its equivalent in Indian rupees with interest. The Commercial Court decreed the suit in favor of the respondent, declaring it as the absolute owner of the shares and directing the appellant to pay USD 114,041 or ₹1,21,91,900/- with 9% pendente lite and 18% future interest. The appellant contended that the impugned judgment was erroneous and liable to be set aside. The High Court, after hearing the parties, dismissed the appeal, affirming the decree of the Commercial Court. The court held that the findings of fact and law by the trial court were correct and did not warrant interference. The appeal was dismissed with no order as to costs.

Headnote

A) Commercial Law - Share Ownership - Declaration of Title - Section 13(1-A) Commercial Courts Act, 2015 - The appellant challenged the judgment declaring the respondent as absolute owner of shares and directing payment of USD 114,041 with interest. The court examined the evidence and submissions to determine the correctness of the findings. Held that the appeal is dismissed and the impugned judgment is affirmed (Paras 1-3).

Issue of Consideration

Whether the impugned judgment and decree declaring the respondent as absolute owner of 3,90,682 equity shares and directing payment of USD 114,041 with interest is sustainable in law.

Final Decision

The appeal is dismissed. The impugned judgment and decree dated 19.07.2025 (as corrected on 18.10.2025) passed by the LXXXVII Additional City Civil and Sessions Judge, Commercial Court, Bengaluru (CCH-88) in Com.O.S.No.8430/2018 is affirmed. No order as to costs.

Law Points

Section 13(1-A) of Commercial Courts Act
2015
Order XLI Rule 31 CPC
Section 34 CPC
Section 35 CPC

Case Details

2026 LawText (KAR) (04) 2

COMAP No. 502 of 2025

2026-04-07

Vibhu Bakhru, Chief Justice, C.M. Poonacha, J.

Smt. Poornima Hatti (for appellant), Sri S.R. Kamalacharan (for respondent)

Komtech Plastic Technologies India Private Limited

Zrii Technologies Inc

Nature of Litigation

Commercial appeal against judgment and decree in a suit for declaration of share ownership and recovery of money.

Remedy Sought

Appellant sought to set aside the judgment and decree dated 19.07.2025 passed by the Commercial Court.

Filing Reason

Appellant challenged the declaration of respondent as absolute owner of 3,90,682 equity shares and direction to pay USD 114,041 with interest.

Previous Decisions

The Commercial Court decreed the suit in favor of the respondent on 19.07.2025, corrected by order dated 18.10.2025.

Issues

Whether the impugned judgment and decree are sustainable in law.

Submissions/Arguments

Appellant argued that the impugned judgment is erroneous and liable to be set aside. Respondent supported the findings of the Commercial Court.

Ratio Decidendi

The High Court found no error in the impugned judgment and affirmed the declaration of share ownership and monetary award with interest.

Judgment Excerpts

The appellant, a private limited company incorporated under the Companies Act, 1956, has filed the present appeal impugning the judgment and decree dated 19.07.2025... In terms of the impugned judgment, the respondent has been declared as the absolute owner of 3,90,682 equity shares of the appellant company.

Procedural History

The respondent filed Com.O.S.No.8430/2018 before the Commercial Court seeking declaration of ownership and recovery. The Commercial Court decreed the suit on 19.07.2025, corrected on 18.10.2025. The appellant filed COMAP No. 502 of 2025 before the High Court under Section 13(1-A) of the Commercial Courts Act, 2015.