Karnataka High Court M/S Avio Helitronics Infosystems Pvt ... vs M/S Savee Aerosystems Private Limited on 12 February, 2026 1 COMAP No. 229 of 2025 DATED THIS THE 12TH DAY OF FEBRUARY, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA COMMERCIAL APPEAL NO. 229 OF 2025 BETWEEN: M/S AVIO HELITRONICS INFOSYSTEMS PVT LTD A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, PLOT NO. 82 AND 83, HITECH DEFENCE AND AEROSPACE SEZ PARK, KIADB INDUSTRIAL AREA, DEVANAHALLI, BENGALURU562 110. REPRESENTED BY ITS MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, MR. SAMEER SONPAVDE PREMNATH. ...APPELLANT (BY SRI. NAIVN PAHWA, SENIOR ADVOCATE A/W Digitally SRI. PRAJITH C, ADVOCATE) signed by NIRMALA DEVI AND: Location: HIGH COURT M/S SAVEE AEROSYSTEMS PRIVATE LIMITED OF HAVING ITS OFFICE AT NO. 311, KARNATAKA 3RD FLOOR, PLOT NO. 371, HIND SERVICE INDUSTRIAL ESTATE, JAMBHEKAR MAHARAJ ROAD, DADAR (WEST) MUMBAI400 028, REPRESENTED BY ITS AUTHORIZED SIGNATORY, MR. HAREN CHANDRAKANTH SANGHAVI. ...RESPONDENT (BY SRI.DHANANJAY V.JOSHI, SENIOR ADVOCATE FOR MR. KASHYAP N. NAIK, ADVOCATE FOR C/R) 2 COMAP No. 229 of 2025 THIS COMAP IS FILED UNDER SECTION 13(1A) OF COMMERCIAL COURTS ACT 2015, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS ACT, 2015 R/W SECTION 37 OF THE ARBITRATION AND CONCILIATION ACT PRAYING TO ALLOW THE PRESENT APPEAL IN FAVOUR OF THE APPELLANTS BY SETTING ASIDE THE IMPUGNED ORDER DATED 29.03.2025 IN COM.AP NO.24/2025, PASSED BY THE HONBLE COURT OF THE LXXXV ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, COMMERCAIL DIVISION, BENGALURU (CCH86) (ANNEXURE A). THIS APPEAL HAVING BEEN HEARD AND RESERVED FOR JUDGMENT, COMING ON FOR PRONOUNCEMENT THIS DAY, JUDGMENT WAS PRONOUNCED AS UNDER: and HON'BLE MR. JUSTICE C.M. POONACHA CAV JUDGMENT (PER: HON'BLE MR. JUSTICE C.M. POONACHA) 1. The present appeal is filed under Section 13(1) of the Commercial Courts Act, 2015 [CC Act] r/w Section 37 of the Arbitration and Conciliation Act, 1996 [A&C Act] impugning the judgment dated 29.03.2025 passed by the LXXXV Addl. City Civil & Sessions Judge, Bengaluru (CCH86) (Commercial Court) in Com.A.P.No.24/2025 [old A.S. No.191/2017) [impugned judgment], whereunder the petition filed by the appellant under Section 34 of the A&C Act impugning an arbitral award dated 15.09.2017 [arbitral award] passed by the sole arbitrator [Arbitral 3 COMAP No. 229 of 2025 Tribunal] in A.C. No.3/2015, was rejected. Vide the arbitral award, the claim made by the respondent / claimant was partly allowed and the appellant was directed to pay a total sum of Rs.8,65,99,649/ as also a sum of Rs.1,09,17,991/ for purchase of software, storage and UPS, as well as a sum of Rs.25,12,378/ with service tax for rental Laptops. The said amounts were directed to be paid along with the interest @ 18% per annum to the respondent. The counter claims made by the appellants were rejected. 2. The relevant facts in a nutshell leading to the present appeal are that the claimant was in the business of providing consultancy services pertaining to recruitment, strategy, consultancy and implementation, business planning, business development, marketing, sales, placement, accounts, HR advisory services and other related services within India and abroad. The parties entered into a business plan dated 28.07.2014 [business plan] and a Consultancy Agreement dated 01.08.2014 [Agreement] whereunder, the claimant was required to deliver certain services to the appellant. 3. The Agreement was for a period of 18 months from 01.08.2014 to 31.01.2016. Alleging that the appellant unlawfully 4 COMAP No. 229 of 2025 terminated the Agreement, the respondent initiated arbitral proceedings and made various claims before