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B.S. KRISHNA MURTHY AND ANR. versus B.S. NAGARAJ AND ORS.

Citation: [2011] 1 S.C.R. 387 · Decided: 14-01-2011 · Supreme Court of India · Bench: MARKANDEY KATJU, GYAN SUDHA MISRA · Disposal: Disposed off

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Judgment (excerpt)

. [2011] 1 S.C.R. 387 
B.S. KRISHNA MURTHY AND ANR. 
v. 
B.S. NAGARAJ AND ORS. 
(Special Leave Petition (C) No. 2896 of 2010) 
JANUARY 14, 2011 
[MARKANDEY KAT JU AND GYAN SUDHA MISRA, JJ.] 
Alternative disputes redressa/: Mediation - Disputes 
involving family and business relationships - Resolution of, 
A 
B 
by mediation - Responsibility of lawyers - Held: It is the 
C 
responsibility of lawyers to advise their clients to try for 
mediation for resolving the disputes, especially where 
relationships like family and business relationships are 
involved, otherwise the litigation would drag on for years and 
decades - Lawyers as well as litigants ought to follow D 
Mahatma Gandhi's advice in the matter and try for arbitration/ 
mediation - This is also the purpose of s. 89 - In the instant 
case, dispute was between the brothers - Matter referred to 
the Bangalore Mediation Centre - Code of Civil Procedure, 
1908 - s.89. 
E 
ยท ยท 'My Experiments with Truth' by Mahatama Gandhi -
referrSJ."f,JQ, 
CIVIL APPELLATE JURISDICTION : SLP (CIVIL} No. 
2896 of 2010. 
F 
From the Judgment & Order dated 17.09.2009 of the High 
Court of Karnataka at Bangalore in RFA No. 1387 of 2004. 
G.V. Chandrashekar, N;K. Verma (for Anjana 
Chandrashekhar) for the Petitioners. 
G 
P. Vishwanatha Shetty, Vijay Kumar Pardesi, Mahesh 
Kumar. G.N. Reddy for the Respondents. 
387 
H 
388 
SUPREME COURT REPORTS 
[2011] 1 S.C.R. 
A 
The following order of the Court was delivered 
ORDER 
Heard learned counsel for the appearing parties. 
B 
This is a dispute between brothers. In our opinion, an effort 
should be made to resolve the dispute between the parties by 
mediation. 
In this connection, we would like to quote the following 
C passages from Mahatma, Gandhi's book 'My Experiments with 
Truth':-
"I saw that the facts of Dada Abdulla's case made it a very 
strong indeed, and that the law was bound to be on his side. 
But I also saw that the litigation, if itwere persisted in, would 
D ruin the plaintiff and the defendant, who were relatives and both 
belonged to the same city. No one knew how long the case 
might go on. Should it be allowed to continue to be fought out 
in Court, it might go on indefinitely and to no advantage of 
either party. Both, therefore, desired an immediate termination 
E of the case, if possible. 
I approached Tyeb Sheth and requested and advised him 
to go to arbitration. I recommended him to see his counsel. I 
suggested to him that if an arbitrator commanding the 
confidence of both parties could be appointed, the case would 
F be quickly finished. The lawyer' fees were so rapidly mounting 
up that they were enough to devour all the resources of the 
clients, big merchants as they were. The case occupied so 
much of their attention that they had no time left for any other 
work. In the meantime mutual ill-will was steadily increasing. I 
G became disgusted with the profession. As lawyers the counsel 
on both sides were bound to rake up points of law in support 
of their own clients. I also saw for the first time that the winning 
party never recovers all the costs incurred. Under the Court 
Fees Regulation there was a fixed scale of costs to be allowed 
H 
B.S. KRISHNA MURTHY AND ANR. v. B.S. NAGARAJ 389 
AND ORS. 
as between party and party, the actual costs as between 
A 
attorney and client being very much higher. This was more than 
I could bear. I felt that my duty was to befriend both parties and 
bring them together. I strained every nerve to bring about a 
compromise. At last Tyeb Sheth agreed. An arbitrator was 
appointed, the case was argued before him, and Dada 
B 
Abdulla won. 
But that did not satisfy me. If my client were to seek 
immediate execution of the award, it would be impossible for 
Tyeb Sheth to meet the whole of the awarded amount, and there c 
was an unwritten law among the Porbandar Memons living in 
South Africa that death should be preferred to bankruptcy. It was 
impossible for Tyeb Sheth to pay down the whole sum of about 
37,000 and costs. He meant to pay not pie less than the 
amount, and he did not wnat to be declared bankrupt. There 
D 
was only one way. Dada Abdulla should allow him to. pay in 
moderate installments. he was equal to the occasion, and 
granted Tyeb Sheth installments spread over a very long period. 
It was more difficult for me to secure the concession of payment 
by instalments than to get the parties to agree to arbitration. 
E 
But both were happy over the result, an

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