Aeila Kishore Reddy vs Aware Action For Welfare And ...
2022 Latest Caselaw 4377 Tel

            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

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

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

(2007)6 SCC 798 PNR,J & JSR,J CMA NOs398 & 401 of 2022

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

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