Aella Kishore Reddy vs Aware Action For Welfare And ...
2023 Latest Caselaw 2467 Tel

 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