THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI
AND
THE HON'BLE SRI JUSTICE ANIL KUMAR JUKANTI
CIVIL MISCELLAENOUS APPEAL Nos.390 and 391 OF 2023
COMMON JUDGMENT: (Per Hon'ble Sri Justice Abhinand Kumar Shavili)
Both these Civil Miscellaneous Appeals are being
disposed of by way of this common judgment since the
issue involved in both the Appeals is one and the same.
2. For the sake of convenience, the facts in Civil
Miscellaneous Appeal No.390 of 2023 are discussed
hereunder.
3. The Civil Miscellaneous Appeal No.390 of 2023 is
filed aggrieved by the ex-parte orders passed by the XIV
Additional Chief Judge, City Civil Court, Hyderabad in
Arb.O.P.No.122 of 2023, dated 26.07.2023.
4. Heard Sri S.Ravi, learned Senior Counsel
representing Sri D.Jagadeshwar Rao, learned counsel
for the appellant on record and Sri M.V.Pratap Kumar,
learned counsel for the respondent.
2 AKS, J & JAK, J
CMAs_390 & 391_2023
5. It has been contended by the appellant that the respondent herein has filed Arb.O.P.No.122 of 2023 under Section-9 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') seeking injunction orders restraining the appellant herein from changing or altering the nature of the petition schedule properties pending appointment of an arbitrator and the Court below vide orders, dated 26.07.2023, has directed the parties to maintain status-quo.
6. The learned Senior Counsel for the appellant had contended that the appellant has purchased the petition schedule properties from the respondent by way of agreement of sale and subsequently, the petition schedule properties were passed on to the appellant by virtue of registered sale deeds executed on various dates and in pursuance to the said registered sale deeds, the appellant has approached the concerned Municipality and has obtained valid building permission and in pursuance to the said building permission, the appellant 3 AKS, J & JAK, J CMAs_390 & 391_2023 has started construction in the petition schedule properties. In those set of circumstances, the respondent herein has approached the Court below by filing Arb.O.P.No.122 of 2023 and obtained the orders of status-quo. Once the petition schedule properties are passed on to the appellant and the appellant has obtained the valid building permission from the competent local body, he is entitled to proceed with the construction and the Court below has mechanically granted status-quo orders. If the respondent succeeds in the arbitration case, then the registered sale deeds and entire construction will be subject to the outcome of adjudication which is likely to be done by the arbitrator. At this point of time, if the appellant is prevented from the construction in pursuance to the registered sale deeds and valid building permission, he will be put to irreparable loss and hardship. Therefore, appropriate orders be passed in the Civil Miscellaneous Appeal by vacating the status-quo orders and let the Arb.O.P.No.122 of 2023 be remanded to the Court below 4 AKS, J & JAK, J CMAs_390 & 391_2023 so as to enable the Court below to pass appropriate orders after giving opportunity to the appellant also, within a reasonable period of time.
7. The Learned counsel for the respondent had contended that the sale was subject to giving sale consideration. Admittedly in the instant case, the appellant has not paid full sale consideration and this got necessitated the respondent to invoke arbitration clause and accordingly, filed Arb.O.P.No.122 of 2023 before the Court below under Section-9 of the Act seeking a direction not to change or alter the nature of the petition schedule properties and the Court below has rightly granted status-quo orders in favour of the respondent herein. There are no merits in the Civil Miscellaneous Appeal and is liable to be dismissed.
8. This Court, having considered the rival submissions made by the parties, is of the view that when the appellant has obtained the building permission on the strength of registered sale deeds, the appellant is 5 AKS, J & JAK, J CMAs_390 & 391_2023 entitled to go ahead with the construction and therefore, the Court below is not justified in ordering status-quo. Hence, the status-quo orders are hereby vacated and the matter is remanded to the Court below to consider the Arb.O.P.No.122 of 2023 and pass appropriate orders after giving opportunity to everyone as expeditiously as possible.
9. With these observations, both the Civil Miscellaneous Appeals are disposed of. There shall be no order as to costs.
Miscellaneous Petitions, if any, pending in these Civil Miscellaneous Appeals shall stand closed.
_________________________________ ABHINAND KUMAR SHAVILI, J ___________________________ ANIL KUMAR JUKANTI, J Date: 19.09.2023.
KRR/ISN