- 1 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF NOVEMBER, 2025 PRESENT THE HON'BLE MRS. JUSTICE ANU SIVARAMAN AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL MISCELLANEOUS FIRST APPEAL NO. 7807 OF 2022 (AA) BETWEEN: MANIKYA HOMES PVT LTD., HAVING ITS OFFICE AT NO.203, SUNAINA TOWERS NEW BOWENPALLYA SECUNDERABAD-500 011. HAVING ITS BRANCH OFFICE AT NO.766, FERNS PARADISE, DODDANKUNDI, OUTER RING ROAD, MARATHAHALLI,BENGALURU-560037 HAVING ITS OFFICE AT SY NO.13, HANDENAHALLI VILLAGE, SARJAPURA HOBLI, ANEKAL TALUK, BENGALURU RURAL DISTRICT-562106 REPRESENTED BY ITS DIRECTOR, MR N RAVI KUMAR, AGED ABOUT 51 YEARS. …APPELLANT (BY SRI. PRADYUMNA L.NARASIMHA.,ADVOCATE) AND: 1. MR. N MUNISWAMYA REDDY S/O MR. NARAYANAPPA, AGED ABOUT 78 YEARS, Digitally signed by RUPA V Location: High Court Of Karnataka - 2 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 2. MR. H N KRISHNA REDDY AGED ABOUT 68 YEARS, S/O MR NARAYANAPPA, 3. MR PILLA REDDY AGED ABOUT 63 YEARS, S/O MR NARAYANAPPA, RESPONDENT 1 TO 3 R/AT HANDENAHALLI VILLAGE, SARJAPURA HOBLI, ANEKAL TALUK, BENGALURU RURAL DISTRICT-562 106. …RESPONDENTS (BY SRI. K C RAVINDRA BABU., ADVOCATE FOR R1 TO R3) - - - THIS MFA IS FILED UNDER SECTION 37(1)(C) OF THE ARBITRATION AND CONCILIATION ACT, AGAINST THE ORDER DATED 16.09.2022 PASSED IN A.S.NO. 166/2016 ON THE FILE OF THE LVI ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU CITY (CCH-57), DISMISSING THE SUIT FILED UNDER SECTION 34 OF ARBITRATION AND CONCILIATION ACT 1996. THIS APPEAL, COMING ON FOR REPORTING SETTLEMENT, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL - 3 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL) Sri.K.C.Ravindra Babu, learned counsel filed vakalath for respondent Nos.1 to 3. The said vakalath is accepted. 2. Learned counsel for the appellant as well as the learned counsel representing the respondents jointly submit that the matter is settled between the parties and they have filed a joint compromise petition. 3. The joint compromise petition reads as under: "JOINT COMPROMISE PETITION FILED BY APPELLANT AND RESPONDENT UNDER ORDER 23, RULE 3 OF CPC, 1908 The Appellant and Respondents jointly state and submits as follows: 1. The Appellant has filed the present Appeal aggrieved by the Judgment dated 16.09.2022, passed by Hon'ble Additional City Civil and Sessions Judge, at Bengaluru (CCH-57) in A.S. No. 166/2016 along with other consequential reliefs against the respondents. 2. The Appellant had initiated the arbitration proceedings before the Sole Arbitrator Shri. Justice Ajit J. Gunjal, in - 4 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 A.C. No. 54/2015, seeking specific performance of an unregistered Development Agreement dated 25.04.2008, executed between both the parties with respect to lands bearing Sy. No. 13, 14 & 15, totally measuring an extent of 10 Acres 28 guntas, situated at Handenahalli Village, Sarjapura Hobli, Anekal Taluk, Bengaluru Urban District. Certain other criminal proceedings have also been initiated in relation to the arbitral proceedings and in particular in relation to Exhibit P-56 which forms part of the arbitral record. 3. Later, the claims of the Appellant before the Ld. Arbitral Tribunal were denied with respect to execution of Joint Development Agreement and Irrevocable General Power of Attorney in terms of Development Agreement dated 25.04.2008. The Ld. Arbitral Tribunal directed these Respondents to refund amounts received under the development agreement, conversion expenses and compensation/ damages totally amounting to Rs.1,31,20,113/- and interest at a rate of 18% P.A., from the date of the development agreement dated 25.04.2008 till the date of award and the Hon'ble Sole Arbitrator was pleased to direct these Respondents to pay the said amount within two months from the date of Award. 4. Aggrieved by the Award passed by the Arbitral Tribunal in A.C. No. 54/2015, this Appellant have preferred Arbitration Suit bearing A.S. No. 166/2016 before the Hon'ble LVI Addi. City Civil & Sessions Judge, - 5 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 At Bengaluru (CCH-57) under Section 34 of Arbitration and Conciliation Act, 1996 and Arbitration Application under Section 9 of Arbitration and Conciliation Act, 1996 in A.A. No. 451/ 2016 before the Hon'ble LVI Addl. City Civil & Sessions Judge, At Bengaluru (CCH-57). 5. During pendency of the above said arbitration suit, on 11.01.2022, these Respondents have deposited a sum of Rs.3,20,00,000/- in compliance of the Arbitral Award dated 21.07.2016. Upon hearing both the parties and on a perusal of the documents placed before it, the Hon'ble Trial Court was pleased to dismiss the petition filed under Section 34 of Arbitration and Conciliation Act, 1996 and Application filed under Section 9 of Arbitration and Conciliation Act, 1996, vide Order dated 16.09.2022. Hence, aggrieved by the Judgment passed by Learned Trial Court, the Appellant have preferred this Miscellaneous First Appeal before this Hon'ble Court. 6. It is further submitted that, as time passed, misunderstandings between the parties pertaining to the Development Agreement dated 25.04.2008 have been settled upon the intervention of well-wishers and relatives, who persuaded the Appellant and Respondents to settle amicably all the disputes which have arisen thereunder and in relation thereto. The parties herein accept and admit the arbitral award passed by Arbitral Tribunal in A.C. No. 54/2015, dated 21.06.2016, which is confirmed and upheld by Hon'ble Additional City Civil and Sessions Judge, At Bengaluru (CCH-57) in A.S. No. - 6 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 166/2016, vide judgment dated 16.09.2022. Further, the Appellant hereby covenants and declares that henceforth, the Appellant doesn't have any claims, rights, title over the Development Agreement and the schedule properties forever. The Appellant further covenants that, the Respondents are the absolute owners in peaceful possession and enjoyment of lands bearing Sy. No.13, 14 & 15, totally measuring an extent of 10 Acres 28 guntas, situated at Handenahalli Village, Sarjapura Hobli, Anekal Taluk, Bengaluru Urban District. 7. The parties further covenant that the Unregistered Development Agreement dated 25.04.2008 pertaining to the above said disputes before this Hon'ble Court is deemed cancelled as null and void and also all the covenants under the said agreement shall also stands cancelied as null and void. The Award passed by the Arbitral Tribunal on the said agreement shall not be challenged before any court of law as it is compromised and the Appellant herein has agreed to receive the sum of Rs.3,20,00,000/- (Rupees Three Crore and Twenty Lakh only), deposited in compliance of the award before the Hon'ble Additional City Civil and Sessions Judge, at Bengaluru (CCH-57) in A.S. No. 166/2016, and the Appellant shall not claim any interest, loss or damages towards this Award from these Respondents. Since the parties are amicably resolving the arbitration related disputes, the parties have likewise, with the intervention of elders and well-wishers amicably resolved the criminal - 7 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 proceedings which are also related to the arbitral proceedings and the arbitral record, details of which are captured hereinafter. 8. Further, Respondent No. 3 has instituted a complaint dated 19.01.2017 in PCR No. 224 of 2017 before the Ld. Principal Civil Judge and JMFC, Anekal in respect of the Agreement for Sale dated 01.02.2007 which was exhibited as Exhibit P-56 in the arbitral proceedings. It is pertinent that the complaint was instituted after completion of the arbitral proceedings. Pursuant to order dated 19.01.2017 passed in PCR No. 224 of 2017, Sarjapura Police Station registered a FIR in Crime No. 32/2017 dated 03.02.2017 under Sections 182, 463, 464, 467, 468, 471, 420, 506 and 1208 of the Indian Penal Code, 1860 against the Appellant, Shri Chowdhary S Garapati, Shri V. Ramdas and Smt. Veena S. 9. Further, the Appellant, Shri Chowdhary S Garapati, Shri V. Ramdas and Smt. Veena S have sought quashing of the complaint dated 19.01.2017, order dated 19.01.2017 in PCR No. 224 of 2017 and the FIR in Crime No. 32/2017 dated 03.02.2017 before this Hon'ble Court in Crl.P. No. 4463 of 2019, Crl.P. No. 4466 of 2019, Crl.P. No. 4467 of 2019 and Crl.P. No. 4464 of 2019 respectively. 10. With the intervention of well-wishers and relatives, Respondent No. 3 and Petitioners in Crl.P. No. 4463 of 2019, Crl.P. No. 4466 of 2019, Crl.P. No. 4467 of 2019 - 8 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 and Crl.P. No. 4464 of 2019 have also settled all disputes arising out of Crime No. 32/2017 amicably on their own volition and free will, without any coercion and without any further claims or disputes. 11. The parties further covenant that the parties shall file a joint application seeking quashing and compounding of the offences in Crime No. 32/2017 qua the Petitioners in Crl.P. No. 4463 of 2019, Crl.P. No. 4466 of 2019, Crl.P. No. 4467 of 2019 and Crl.P. No. 4464 of 2019 and jointly undertake to also produce a copy of the present joint compromise petition before the Hon'ble Court seized of the matters. 12. Both the parties hereby file this joint compromise petition in the order to resolve all the disputes and claims forever in the interest of equity and justice. Wherefore, the Appellant and Respondents humbly prays that, this Hon'ble Court be pleased to dispose of the present appeal in terms of this Joint Compromise Petition in the interest of justice and equity." 4. Learned counsel appearing for the parties identified the parties and submitted that the terms of compromise were drawn based on the instructions of the parties. - 9 - HC-KAR NC: 2025:KHC:46096-DB MFA No. 7807 of 2022 5. We have perused the terms of compromise. They are in accordance with law. The same is accepted. 6. Accordingly, the appeal is disposed of in terms of the compromise entered into between the parties. Sd/- (ANU SIVARAMAN) JUDGE Sd/- (VIJAYKUMAR A. PATIL) JUDGE RV List No.: 1 Sl No.: 49