1 APHC010581092025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY, THE TWENTY FOURTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR CIVIL MISCELLANEOUS APPEAL NO: 754/2025 Between: 1. VIJAY KUMAR VARDHURU, S/O. SIVARAO, HINDU, AGED ABOUT 51 YEARS, R/O. D. NO. 129/3, VINAYAKA NAGAR, CHILLAKURU MANDAL, TIRUPATI DISTRICT. ...APPELLANT AND 1. SHRIRAM CITY UNION FINANCE LTD, REP. BY ITS GPA HOLDER, K. PHANI KUMAR, BRANCH OFFICE AT ATAMAKUR. 2. T SUNDARA RAMAIAH, SOLE ARBITRATOR, DISTRICT JUDGE (RETD), R/O. D. NO. 1-1-300/B, 1ST FLOOR, ASHOK NAGAR TO HIMAYAT NAGAR, (40 NO. BUS ROUTE), ABOVE CANARA BANK, ASHOK NAGAR, HYDERABAD. / 3. V SUPRAJA, W/O. VIJAY KUMAR, HINDU, AGED ABOUT 42 YEARS, R/O. D. NO. 129/3, VINAYAKA NAGAR, CHILLAKURU MANDAL, TIRUPATI DISTRICT. 4. 4. K SUDHEER, S/O. LATE SUNDHARAIAH, HINDU, AGED ABOUT 39 YEARS, R/O. D. NO. P/96, VINAYAKA NAGAR, CHILLAKURU MANDAL, TIRUPATI DISTRICT. 5. R SUMAN R SUMAN KUMAR, S/O. SUBRAMANYAM, HINDU, AGED ABOUT 32 YEARS, R/O. D. NO. 3-190, PEDAGOVINDAPALLI VILLAGE, KOTA MANDAL, TIRUPATI DISTRICT. 5. 2 (RESPONDENTS 3-5 ARE NOT NECESSARY PARTIES) ...RESPONDENT(S): Appeal Under Section_____against ordersThe above-named Appellant begs to present this Memorandum of Civil Miscellaneous Appeal against the Order dated 21-08-2025 passed in Arbitration O.P. No. 640/2022, on the file of Honble III Additional District Judge, Nellore for the following grounds among other IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to stay of all further proceedings in the award dated 11-05-2022 passed by the 2nd respondent in arbitration case No. 979/2021 which was confirmed by the Order dated 21-08-2025 passed in Arbitration O.P. No. 640/2022 on the file of the Hon'ble III Additional District Judge, Nellore pending disposal of the present CMA and pass Counsel for the Appellant: 1. K PALLAVI Counsel for the Respondent(S): 1. O UDAYA KUMAR Date of Reserved :08.12.2025 Date of Pronouncement :24.12.2025 Date of Upload :24.12.2025 3 The Court made the following order: (per Hon’ble Sri Justice R. Raghunandan Rao) The appellant herein had obtained certain financial assistance from the 1st respondent herein, to an extent of Rs.80 lakhs. A loan agreement was also executed between the appellant and the 1st respondent wherein the appellant agreed to repay the aforesaid amount in sixty (60) monthly installments. Apart from this, the appellant had also created security over immovable property by depositing his title deeds. Subsequently, the appellant became a defaulter. In view of the said default, the respondent had initiated arbitration proceedings, in terms of the arbitration clause available in the loan agreement. The arbitration proceedings resulted in an award, being passed by the learned Arbitrator, on 11.05.2022, in Arbitration Case No.979 of 2021. 2. The appellant being aggrieved by the said award had moved the III Additional District Judge, Nellore, by way of A.O.P.No.640 of 2022, under Section 34 of the Arbitration and Conciliation Act, 1996. The main grounds urged before the trial Court were that the award was passed without notice being given to the appellant and other signatories to the loan agreement and that the appellant and the other signatories, to the loan agreement, had signed the loan agreement without the terms and conditions of the said agreement being explained to them. Both these contentions were rejected by the trial Court which dismissed the petition, by an order dated 21.08.2025. 3. Aggrieved by the said order, dated 21.08.2025, the appellant has filed the present Civil Miscellaneous Appeal before this Court. 4 4. Heard Smt. K. Pallavi, learned counsel appearing for the appellant. 5. The learned counsel for the appellant would contend that the award had been passed without any notice being given to the appellant herein. She would also contend that the signatures of the appellant and other signatories to the loan agreement were obtained by the 1st respondent without explaining any of the terms of the agreement and without allowing the appellant to go through all the terms. 6. A perusal of the award as well as the order of the trial Court would show that notices has been sent to the appellant and the other signatories to the loan agreement. The trial Court compared the addresses shown on the acknowledgment received from the appellant with the address shown in A.O.P.No.640 of 2022 and held that they were the same. The trial Court also took into account the fact that the notice, dated 09.1.2.2021, issued by the 1st respondent company regarding the initiation of arbitration was also refused by the appellant and the other signatories to the loan agreement. In that view of the matter, the trial Court took the view that notice had been served on the appellant. 7. On the question of the appellant signing the loan agreement, without being aware of the contents of the agreement, both the Arbitrator as well as the trial Court took the view that the appellant having signed the document, cannot turn around and claim ignorance of the terms and conditions in the said document. 5 8. This Court does not find any reason to differ with the findings of the trial Court or the Arbitrator regarding service of notice on the appellant and the knowledge regarding the terms and conditions of the loan agreement. It may also be noted, that the appellant, except raising procedural issues has not disputed or denied the fact of default or quantum of default. In that view of the matter, we do not find any reason to interfere with either the award or the order of the trial Court. 9. Accordingly, this Civil Miscellaneous Appeal is dismissed. There shall be no order as to costs. As a sequel, pending miscellaneous petitions, if any, shall stand closed. _______________________________ R. RAGHUNANDAN RAO, J ____________________ T.C.D. SEKHAR, J RJS 6 THE HON’ABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HON’BLE SRI JUSTICE T.C.D. SEKHAR CIVIL MISCELLANEOUS APPEAL NO: 754/2025 (per Hon’ble Sri Justice R Raghunandan Rao) 24.12.2025 RJS