HONOURABLE SRI JUSTICE P.NAVEEN RAO
&
HONOURABLE SRI JUSTICE J.SREENIVAS RAO
CIVIL MISCELLANEOUS APPEAL NOS.398 AND 401 OF 2022
Date: 05.09.2022
C.M.A.No.398 of 2022:
Between:
Aella Kishore Reddy, s/o. Pitchi Reddy,
Aged about 47 years, occu: Business,
r/o.H.No.2-4-158, Snehapuri Colony,
Road No.9B, Nagole, Saroornagar Mandal,
Ranga Reddy district.
.....Appellant/
Respondent
and AWARE (Action for Welfare and Awakening in Rural Environment), having its National Administrate Office at 5-9-24/78, Lake Hills Road, Hyderabad, rep.by its Secretary K.Venkat Reddy.
.....Respondent/ Petitioner The Court made the following:
PNR,J & JSR,J CMA NOs398 & 401 of 2022 2 HONOURABLE SRI JUSTICE P.NAVEEN RAO & HONOURABLE SRI JUSTICE J.SREENIVAS RAO CIVIL MISCELLANEOUS APPEAL NOS.398 AND 401 OF 2022 COMMON JUDGMENT: (per Hon'ble Sri Justice P.Naveen Rao) Heard learned counsel Sri D.Jagadishwar Rao for the appellant and learned counsel Sri M.V.Pratap Kumar for the respondent.
2. These two appeals are preferred against the Orders in Arbitration O.P.Nos.134 and 133 of 2022, respectively, on the file of XIV Additional Chief Judge, City Civil Court at Hyderabad, respectively. Petitions under Section 9 of the Arbitration and Conciliation Act, 1996 are filed praying to direct the respondent to furnish the security of suit amount of 4,59,48,932/- in Arb.O.P.No.134 of 2022 and 4,32,28,256/- in Arb.O.P.No.133 of 2022. By separate orders dated 08.08.2022, while issuing notices in both the O.P.s, the Court below directed to furnish security within 36 hours of receiving notice, failing which the petitions would be allowed.
3. It is contended by the learned senior counsel for the appellant that the orders of the Court below are liable to be set aside on the sole ground that orders are not supported by reasons and no orders can be passed depriving the rights of the appellant without affording PNR,J & JSR,J CMA NOs398 & 401 of 2022 3 due opportunity of hearing and without assigning reasons in support of the decisions.
4. Learned counsel for the respondent produced the daily order proceeding dated 30.08.2022.
5. We have gone through the daily order dated 30.08.2022. Learned Judge records in detail regarding service of notices and ultimately passes an order of attachment of the petition schedule property to the extent which is capable of realizing the suit amount. Again order does not contain reasons. While filing application before the lower Court seeking to keep in abeyance from passing of any further order, an undertaking was given that till Civil Miscellaneous Appeals are disposed of, appellant would not deal with the subject property.
6. We are satisfied with the Orders passed by the Court below on 08.08.2022 and subsequently on 30.08.2022 are bereft of reasons and not maintainable.
7. It is useful to note the observations made by the Hon'ble Supreme Court in Arvind Constructions Co.(P) Ltd. Vs. Kalinga Mining Corporation and others1. The Hon'ble Supreme Court observed that the exercise of power under Section 9 of the Act must 1 (2007)6 SCC 798 PNR,J & JSR,J CMA NOs398 & 401 of 2022 4 be based on well-recognized principles governing the grant of interim injunctions and other orders of interim protection or the appointment of a receiver. In the case on hand, no reasons are assigned why such extreme measure was taken by the Court below to attach the property of the appellant. Since the orders affect the appellant and has civil consequences, minimum that is expected is to assign reasons in support of the decision. Therefore, the Orders dated 08.08.2022 and subsequent Orders dated 30.08.2022 in both the Appeals are set aside and matters are remanded to the Court below with a direction to afford opportunity of hearing to both parties and pass orders on due consideration of the respective submissions. The entire exercise shall be completed within four weeks from the date of receipt of copy of this order. Till orders are passed by the Court below, as directed above, the appellant shall not deal with the subject property. Civil Miscellaneous Appeals are accordingly disposed of. Pending miscellaneous petitions if any shall stand closed.
_______________________ P.NAVEEN RAO, J _______________________ J.SREENIVAS RAO, J Date: 05.09.2022 Kkm PNR,J & JSR,J CMA NOs398 & 401 of 2022 5 HONOURABLE SRI JUSTICE P.NAVEEN RAO & HONOURABLE SRI JUSTICE J.SREENIVAS RAO CIVIL MISCELLANEOUS APPEAL NOS.398 AND 401 OF 2022 Date: 05.09.2022 kkm