High Court for State of TelanganaCRP/735/2022disposed of no costs

Narra Balaswamy v. M/S Shriram City Union Finance Limited

2022-04-29Abhinand Kumar Shavili6 pages

IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD FRIDAY, THE TWENTY NINTH DAY OF APRIL TWO THOUSAND AND TWENryTWO rHE HoNouRABLE sRr JfSr53ET"r,*o*o KUMAR sHAVrLr CIVIL REVISION PETITION NO: 73s OF 2022 Petition under Article 227 of Constitution of lndia, aggrieved by the Order dated 03/03/2022 in lA No.168/2022 in Arb.OP No.1 of 22 on ihe file of the Court of the Principal District Judge, Nalgonda.

Betwee n:

1. Narra Balaswamy, S/o Balaram, aged 39 years, Occ M/s Mahalaxmr Motors, D.No 19-44112, Vinayaka Complex, IVlahabubnagar Road, Devarakonda, R/o Kamalapuram (v), Devarakonda (M), Nalgonda District, T.S.,

2. Vasthula Satyanarayana, S/o Muthyalu, aged 41 years, Occ APGENCO, Puttamgandi, R/o H.No. 17-151 , Devarakonda, Nalgonda Dist. T.S.

3. Palle Balaram, S/o Yellaiah, aged 45 years, Occ Panchayat Secretary at GP Chennaram, R7o Padamatipalli (v), Devarakonda (M), t",n""1X?,;liLt.*. AND

1. M/s Shriram City Union Finance Limited, having its Registered office at Ng 123, Angappappa Naikken street, Chennai with the Administrative office at 3-5-478, 4"' floor, Anand Estates, Liberty Road, Himayathnagar, Hyderabad and one such branch situated at Nalgonda is represented by the G.P.A. Holder cum Dy. General Manager Sri K. Srinivasulu S/o Rangaiah, aged 43 years, in Shriram City Union Finance Ltd., Nalgonda Branch.

2. Sri B. Venkateswarlu, Sole Arbitrator, 5-1-254, Kavirajnagar, Khammam, Khammam District' T'S ...RES'.NDENTS lA NO: 1 OF 2022 Petition under Section 151 of CPC praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to suspend the condition imposed to deposit an amount of Rs 6,50,000/- in the order dated 03.03.2022 passed by the Principal District Judge, Nalgonda in lA No.168 of 2022in ARB OP No.1 of 2022.

For the Petitioners : SRI KADARU PRABHAKAR RAO, Advocate For the Respondents : SRI N.SRIKANTH GOUD, Advocate The Court made the following: ORDER

c THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI CML REVISION PETITION No.73 5 of 2022 ORDER:

This Civil Revision Petition is filed aggrieved by the order, dated 03.03.2022, passed in I.A.No.168 of 2022 in Arbitration O.P.No.1 of 2022 on the file of Principal District Judge, Nalgonda.

Heard Sri Kadaru Prabhakar Rao, learned counsel for the petitioners and Sri N. Srikath Goud, learned counsei for the lst respondent.

It has been contended by learned counsel for the petitioners that the petitioners have borrowed certain amounts from the 1"t respondent with a promise to repay the same. But, the petitioners could not repay the same due to various difficulties. Therefore, the 1st respondent has initiated arbitration proceedings before the 2nd respondent and the 2"d respondent rvas pleased to pass an Award, dated 29.72.2012 in Arbitration Case No. 17 of 2OL5, directing the petitioners to pay an amount of Rs.3,17,992/- to the 1st respondent. Aggrieved by the said Award, the petitioners have preferred Arbitration O.P.No.1 of 2022 before the Principal District Judge, Nalgonda, (

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under Section 34 of the Arbitration and Conciliation Act, 1996. In the said O.P, the petitioners have filed LA.No.168 of 2022 seeking stay of the Award passed by the learned Arbitrator. The learned Principal District Judge, Nalgonda, by order, dated O3.O3.2O22 in I.A.No.168 of 2022 stayed the Award on condition of the petitioners depositing an amount of Rs.6,50,000/- to the credit of the subject O.P, Aggrieved by the same, the present revision petition is filed. 4.

On the other hand, learned counsel for respondent No. 1 contended that the Court below passed order in accordance with law and the said order needs no interference by this Court.

Admittedly, the petitioners have filed Arbitration O.P.No. I of 2022 on the file of learned Principal District Judge, Nalgonda, challenging the award passed by the Arbitrator. Along with the O.P., the petitioners have also filed I.A.No.168 of 2022 seeking stay of the Award and the Principal District Judge was pleased to pass order, date O3.O3.2O22 in I.A.No. 168 of 2022 in Arb.O.P.No. 1 of 2022 staying the Award on condition of the petitioners depositing an amount of Rs.6,50,000/- to the credit of the subject O.P.

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At this stage, learned counsel for the petitioners had contended that the petitioners are willing to pay the principal amount of Rs.3,17,99 2l- and.let the Award amount be restricted to the said amount and direct the learned Principal District Judge, Nalgonda, to adjudicate the Arbitration O.P.No.1 of 2022 on merits.

Learned counsel appearing for the 1st respondent has expressed no objection for reducing the amount, as determined by the Arbitrator to that of Rs.3,l7,9921- and let stay be continued till disposal of the Arbitration O.P.No. 1 of 2022.

In view of the said submission, this Court is of the considered view that the order passed by the Court below in I.A.No.168 of 2022 in Arb O.P.No.l of 20202 is modified and there shall be stay of Award, dated 29.12.2017 passed in Arbitration Case No. 17 qf 20 15, by the 2.'d respondent, subject to condition of petitioners depositing an amount of Rs.3,17,9921-, instead of Rs.6,50,000/-, within a period of four

(4) weeks from the date of receipt of a copy of this order. On such deposit, the I st respondent is entitled to withdraw the same. The learned Principal District Judge, Nalgonda, shall

cRP rls lotl adjudicate the Arb.O.P.No.l of 2022, on merits and pass appropriate orders, in accordance with iaw. If the petitioners fail to deposit the amount as stated above, stay granted by this Court shatl stand vacated automatically.

With the above direction, the Civil Revision Petition is disposed of.

Miscellaneous petitions, if any, pending in this revision petition shall stand closed. There shall be no order as to costs. Sd/-K.AlVt\4AJl ASSISTANT REGISTRAR G, SECTION OFFICER To

1. The Principal District Judge, Nalgonda.

2. One CC to Sri Kadaru Prabhakai Rao, Advocate (OPUC)

3. One CC to Sri N.Srikanth Goud, Advocate (OpUC)

4. Two CD Copies

5. One Spare Copy Kj //TRUE COPY'

HIGH COURT DATED:2910412022 1 ELA,V A\, .\.

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ORDER

CRP.No.735 of 2022 ) Disposing of the CRp.