S. R. K. Bhailal Bhai J. v. VS State of Andhra Pradesh
2025-07-04
MAHESWARA RAO KUNCHEAM, RAVI NATH TILHARI
body2025
DigiLaw.ai
ORDER : Heard Sri D.Yathindra Dev, learned Special Government Pleader for the appellants in COM.C.A.No.6 of 2021 and Sri C.V.R.Rudra Prasad, learned counsel representing Sri Ch.Purnachandra Rao, learned counsel for the respondent. 2. The interim order dated 15.04.2021, read as under: “COM.C.A No.6 OF 2021 Admit. I.A.No.1 of 2021 Heard the learned Advocate General and Sri P.Kamalakar representing Sri Ch.Purnachandrarao, learned counsel for the respondent. Having regard to the submissions made by the learned Advocate General and the learned counsel for the respondent-decree holder and taking into account the findings recorded by the trial court, there shall be interim stay as prayed for subject to the appellants-petitioners’ depositing half of the decretal amount + costs within a period of twelve (12) weeks from today. On such deposit, the respondent-decree holder is entitled to withdraw the same. It is also made clear that this arrangement shall be subject to outcome of the Appeal.” 3. Subsequently, application for extension of time was filed, to comply with the interim order dated 15.04.2021 vide I.A.No.2 of 2021, upon which the following order was passed on 24.07.2021: “I.A.No.2 of 2021 Heard the learned counsel for the petitioners/appellants and Sri P.Kamalakar, learned counsel representing Sri Ch.Purnachandra Rao, learned counsel for the respondent. The present application came to be filed seeking extension of time for complying with the order dated 15.4.2021 in I.A.No.1 of 2021. As seen from the record, the petitioners were directed to deposit half of the decretal amount together with costs within a period of twelve weeks from the said date. Though the said period has elapsed, no amount has been deposited. The present application is filed seeking some more time for complying with the said order. Having regard to the facts and circumstances of the case and in view of the statement made by Sri Dilip Kumar, learned counsel, four (4) more weeks from today is granted for complying with the above order. It is made clear that if the said order is not complied with within the stipulated period, the interim order stands vacated automatically without further reference to this Court.” 4. Later on, I.A.No.3 of 2021 was also filed, on which the following order was passed on 17.12.2021: “I.A.No.3 of 2021 Heard Sri Bala Swamy, learned counsel attached to the office of learned Advocate General and Sri P.Kamlakar, learned counsel representing Sri Ch.Purnachandra Rao, learned counsel for the respondent.
Later on, I.A.No.3 of 2021 was also filed, on which the following order was passed on 17.12.2021: “I.A.No.3 of 2021 Heard Sri Bala Swamy, learned counsel attached to the office of learned Advocate General and Sri P.Kamlakar, learned counsel representing Sri Ch.Purnachandra Rao, learned counsel for the respondent. It appears from the record that already time was extended for compliance of the interim order but till date no amount is paid. Having to the facts in issue, the appellants shall deposit 50% of the amount directed to be deposited by way of interim order within a period of two (2) weeks from today. List on 04.01.2022.” 5. The appellants deposited an amount of Rs.3,40,08,615.00 on 19.02.2022. Learned counsel for the appellants submitted that the said amount was 25% of the principal amount and it was so deposited as under the order dated 17.12.2021, the appellants were directed to deposit 50% of the amount directed to be deposited by way of interim order dated 15.04.2021. The aforesaid contention raised is contrary to the interim order dated 15.04.2021. The appellants had also not filed any application for modification of the said interim order and consequently, the order dated 17.12.2021 could not be considered as direction to deposit 50% of the amount directed to be deposited by way of interim order dated 15.04.2021 and particularly when the order dated 17.12.2021 was passed in I.A.No.3 of 2021 seeking extension of time to deposit the amount under the interim order dated 15.04.2021. “The Main Company Appeal No.6 of 2021 came to be filed against the judgment and decree dated 10.02.2020, passed in C.O.S.No.1 of 2017, on the file of the Court of the Principal District Judge, Nellore. The respondent in the appeal instituted the said C.O.S.No.1 of 2017, declaring the letter dated 10.12.2007 of the appellant No.2 herein as arbitrary, unreasonable and for permanent injunction to restrain the defendants and their successors from initiating any coercive steps, in pursuance of the same and also for a direction to the defendants to pay the sum of Rs.20,00,00,000/- (Rupees Twenty Crores only) towards the amount of claim and to award interest of the rate of 12% per annum. 6. The aforesaid aspect was also clarified previously by a Coordinate Bench vide its order dated 21.02.2022.
6. The aforesaid aspect was also clarified previously by a Coordinate Bench vide its order dated 21.02.2022. We would reproduce the order dated 21.02.2022 as follows: Learned Principal District Judge, Nellore, partly decreed the suit, declaring the impugned letter as arbitrary, unreasonable and also directed the defendants to pay the plaintiff a sum of Rs.12,36,34,816/- together with an interest at the rate of 12% per annum, from the date of the suit i.e., 18.06.2008, till the date of realization and also directed to pay the proportionate costs of Rs.61,99,823/-. As against the said judgment and decree, the defendants filed the present C.O.M.C.A. This Court while admitting the Company Appeal, on 15.04.2021, in I.A.No.1 of 2021, granted interim stay, subject to the appellants (defendants) depositing half of the decretal amount + costs within a period of twelve (12) weeks from the said date, with a liberty to the decree holder to withdraw the same. Subsequently, on an application filed by the appellants vide I.A.No.2 of 2021, this Court extended the time to deposit by 4 more weeks. Subsequently, the appellants filed I.A.No.3 of 2021, under the provisions of Section 148 of the Code of Civil Procedure, seeking extension of time granter earlier in I.A.No.2 of 2021 and the said application came up before this Court on 17.12.2021 and this Court passed the following order: “Having regard to the facts in issue, the applicants shall deposit 50% of the amount directed to be deposited by way of an interim order, within a period of two (2) weeks from the said date.” Subsequently, this matter came up before this Court on 18.01.2022 and on the said date, learned counsel for the respondent in the appeal reported that despite the issuance of the order of the Government, no amounts were paid. On 28.01.2022, this Court recorded the statement of the learned Government Pleader for Irrigation and Command Area Development that the delay in depositing the amount was due to administrative reasons. Thereafter, the matter came before this Court on 07.02.2022 and on that date, while directing the matter to be listed after a week, this Court observed that in the event of failure to release the amount by the said time, the Finance Secretary should be present before this Court.
Thereafter, the matter came before this Court on 07.02.2022 and on that date, while directing the matter to be listed after a week, this Court observed that in the event of failure to release the amount by the said time, the Finance Secretary should be present before this Court. Subsequently, when the matter was posted on 17.02.2022, it was brought to the notice of this Court by the learned Special Government Pleader, Sri C.Sumon, that the release orders for an amount of Rs.3,40,09,000/- were issued by the Government and the amount equivalent to 25% of the decretal amount has already been released. It is further submitted that the amount is lying with the Executive Engineer for taking necessary action, for depositing the amount shortly. Learned counsel for the respondent/decree holder, submits that the release of the amount equivalent to 25% by any stretch of imagination cannot be construed as complete compliance of the order passed by this Court in I.A.No.1 of 2021, dated 15.04.2021. On the other hand, Sri C.Sumon, learned Special Government Pleader submits that since this Court while passing orders in I.A.No.3 of 2021, directed the appellants to deposit 50% of the amount directed to be deposited by way of an interim order, it has to be necessarily construed that this Court reduced the amount from 50% of the decretal amount as directed earlier on 15.04.2021 to 25%. In the considered opinion of this Court, the said argument advanced by the learned Special Government Pleader cannot be approved by this Court. The fact remains that I.A.No.3 of 2021 came to be filed by the Government seeking extension of the time granted earlier only. The tenor of the order also shows that this Court on 17.12.2021, specifically directed the appellants to deposit 50% of the amount directed to be deposited by way of an interim order dated 15.04.2021, but not 50% out of the amount directed vide order dated 15.04.2021. Though the learned counsel for the respondent herein/decree holder, submits that in view of non-compliance of the order passed earlier dated 24.07.2021, the stay stood dissolved, in the considered opinion of this Court, it cannot be upheld, since subsequently vide order dated 17.12.2021, this Court in I.A.No.3 of 2021 extended the time granted earlier.
Though the learned counsel for the respondent herein/decree holder, submits that in view of non-compliance of the order passed earlier dated 24.07.2021, the stay stood dissolved, in the considered opinion of this Court, it cannot be upheld, since subsequently vide order dated 17.12.2021, this Court in I.A.No.3 of 2021 extended the time granted earlier. For the aforesaid reasons, further time of ten (10) weeks is granted to the appellants for depositing the balance of 25% of the amount directed to be deposited vide order dated 15.04.2021, with a liberty to the decree holder to withdraw the same. Having regard to the circumstances of the case and keeping in view the partial compliance of the order passed earlier on 15.04.2021, the presence of the Finance Secretary as directed shall stand dispensed with. It is also made clear that in the event of failure to deposit the amount within the time stipulated above i.e., 10 weeks from today, the stay granted earlier on 15.04.2021 shall stand rescinded and it is open for the decree holder to proceed in accordance with law.” 7. Learned counsel for the appellants further submits that in the order dated 21.02.2022, the appellants submission that they had deposited 25% out of 50% under the interim order dated 15.04.2021 was accepted by this Court and the direction was given to deposit the balance of 25%, for which time was also extended. He submits that an amount of Rs.3,40,08,615.00 was equivalent to 25% of the said amount, which was deposited and the same amount required to be deposited being the balance of 50% under the interim order dated 15.04.2021. We were not satisfied, in view of the clear order dated 15.04.2021, which provided to deposit 50% of thedecretal amount + costs. The appellants haddeposited firstly 25% of the principal amount and pursuant to the order dated 21.02.2022, another 25% of the principal amount. The aforesaid deposit, in our view, did not comply with the terms of the interim order.
We were not satisfied, in view of the clear order dated 15.04.2021, which provided to deposit 50% of thedecretal amount + costs. The appellants haddeposited firstly 25% of the principal amount and pursuant to the order dated 21.02.2022, another 25% of the principal amount. The aforesaid deposit, in our view, did not comply with the terms of the interim order. Consequently, we passed the order dated 30.06.2025, which reads as under: “I.A.No.2 of 2025 This application has been filed by the Government of Andhra Pradesh, the petitioners, seeking restoration of the interim order dated 15.04.2021 passed in COM.C.A. No.6 of 2021 by this Court, by condoning the delay in depositing the amount as directed therein, so also for a direction to the respondent not to proceed with Execution Petition No.20 of 2011 on the file of the Principal District Judge, Nellore, pending disposal of COM.C.A. No.6 of 2021. 2. Sri C.V.R.Rudhra Prasad, learned counsel representing Sri C.H.Purnachandra Rao, learned counsel for the respondent has filed a counter affidavit. 3. Heard learned counsels on the said application including Mrs.Maria Rani Makkena, learned counsel representing Sri K.B.Ramanna Dora, learned counsel for the respondents 4 to 6. 4. After taking into consideration the interim orders dated 15.04.2021, 24.07.2021, 17.12.2021, and 21.02.2022, prior to the disposal of I.A. No.2 of 2025, the learned counsel for both the petitioners/appellants and the respondent shall submit a calculation chart reflecting the decretal amount as on the date of the interim order dated 15.04.2021 plus cost amount under separate head. 5. The petitioners shall also clarify the total amount deposited pursuant to the interim order dated 15.04.2021 and indicate whether the same is in compliance with the directions contained in the interim order dated 15.04.2021 i.e., if the total deposit made is 50% of the decretal amount as on 15.04.2021 plus cost or not ?. 6. Let the affidavit be filed by the 1st respondent before the next date of listing. 7. Post the matter on 04.07.2025. 8. The learned Government Pleader for the petitioners submits that the Execution Petition is listed today for attachment. Since we are considering the application for condonation of delay in making the deposit as sought in I.A. No.2 of 2025, and as the matter is posted for hearing on 04.07.2025, it is provided that till the next date of listing, further proceedings in the Execution case shall remain in abeyance.” 8.
Since we are considering the application for condonation of delay in making the deposit as sought in I.A. No.2 of 2025, and as the matter is posted for hearing on 04.07.2025, it is provided that till the next date of listing, further proceedings in the Execution case shall remain in abeyance.” 8. Pursuant to the said order, an affidavit has been filed by the petitioners sworn by the Special Chief Secretary to Government, Irrigation & CAD Department, now called as Water Resources Department, Secretariat, along with I.A.No.3 of 2025. By the said I.A., the petitioners/appellants have also prayed to modify the interim order dated 15.04.2021 in I.A.No.1 of 2021 by permitting the respondent to withdraw thebalance amount of Rs.9,51,57,598.00 by furnishing adequate security. 9. Now, in the affidavit filed along with I.A.No.3 of 2025, it has been submitted in paragraph(5) that half of the decretal amount,interest + costs comes to Rs.15,69,75,005.00 + Rs.61,99,823.00 = Rs.16,31,74,828.00. 10. In paragraph(6), it has been stated that the appellants deposited an amount of Rs.3,40,08,615.00 on 19.02.2022 and further amount of Rs.3,40,08,615.00, was deposited on 21.10.2023 and thus, the total amount deposited by the appellants in two instalments is Rs.6,80,17,230.00 and the balance which remain to be deposited pursuant the interim order dated 15.04.2021 comes to Rs.9,51,57,598.00. 11. Learned counsel for the appellants further submits that the amount could not be deposited within the time granted and the second installment was deposited after the period prescribed. So, the appellants have filed an application to condone the delay in depositing the second installment. 12. Learned counsel for the appellants further submits that the amount deposited so far vide two instalments as aforesaid, has been withdrawn by the respondent-plaintiff. 13. Learned counsel or the respondent, Sri C.V.R.Rudhra Prasad, does not dispute that the amount so deposited by the appellants including the amount deposited beyond the time granted by this Court has been withdrawn, in view of the interim order of this Court, without furnishing any security. 14. Learned Special Government Pleader for the appellants submits that he has instructions to say that the appellants are ready to deposit the balance of Rs.9,51,57,598.00 under the interimorder dated 15.04.2021 within a period of four months.
14. Learned Special Government Pleader for the appellants submits that he has instructions to say that the appellants are ready to deposit the balance of Rs.9,51,57,598.00 under the interimorder dated 15.04.2021 within a period of four months. He further submits that as that is a hugeamount and in case of the appellants’ success in appeal, there may be remote possibility torecover the same from the respondent giving riseto the multiplicity of the legal proceedings, the appellants have also filed I.A.No.3 of 2025 to modify the interim order dated 15.04.2021 bypermitting the respondent to withdraw such amount, by furnishing adequate security. 15. Learned counsel for the respondent prays for time to file objections to the application for modification of the interim order dated 15.04.2021 i.e. I.A.No.3 of 2025. 16. Let the objections be filed within a period of four months. 17. If objections are filed, the reply affidavit if any, may be filed within a further period of three (03) weeks. 18. Post on 26.11.2025. 19. We are of the view that the balance of 50% of the decretal amount as on 15.04.2021, (as per the calculation made in paragraphs (5) and (6) of the affidavit), deserves to be deposited to comply with the interim order dated 15.04.2021. 20. Let the appellants deposit balance of Rs.9,51,57,598.00, in terms of the interim order dated 15.04.2021 and in compliance thereof within a period of four months, from today before the learned Executing Court. 21. The deposit already made of the second instalment beyond the period granted under the interim order dated 15.04.2021, is condoned. 22. To enable the appellants to comply with this order, the execution proceedings shall remain stayed for a period of four months fromtoday. 23. On such compliance being made, the further proceedings for execution shall remainstayed till the next date of listing. 24. The deposit of the aforesaid amount by the appellants shall be invested in F.D.R in a Nationalized Bank preferably State Bank of India, initially for period of one year subject to renewal clause and shall not be permitted to be withdrawn by the respondent till the disposal of I.A.No.3 of 2025.