IMPORTANT POINT
The court ruled that a registered Development Agreement-cum-General Power of Attorney can only be cancelled by another registered document, and unilateral cancellation is impermissible under law.

ORDER :

(Kunuru Lakshman, J.)

1. Both the applications arise from a common set of facts between the same parties. Therefore, both the Applications are heard together and disposed of by way of this common order:-

2. Heard Sri B.Rajeshwar Reddy, learned counsel for the Applicants in A.A. No.155 of 2023 and respondents 1 and 2 in A.A. No.15 of 2023, Sri K.Sathakarni, learned counsel for the Applicant in A.A. No.15 of 2024 and respondent Nos. 1 and 4 in A.A. No.155 of 2023, M/s. Unnam Law Firm, learned counsel appearing for respondent No. 2 and Sri Mohd. Moin Ahmed Quadri, leaned counsel appearing for respondent No. 3 in A.A. No.155 of 2023.

3. Mr. G.Vibby and Mr. G.Chakradhar, sons of late G.K. Raju, represented by their GPA holder Mr. N. Ravinder Reddy, have filed Arbitration Application vide A.A. No.155 of 2023 against M/s. Cresco Housing Projects, Mr. Shyam Sunder Baheti, Mr. Dommata Narsimha Rao and Mr. S. Anil Kumar, seeking appointment of Arbitrator to adjudicate the disputes between the parties in relation to cancellation of Development Agreement - cum - General Power of Attorney (DAGPA), dated 06.02.2017. Likewise, M/s. Cresco Housing Projects represented by its Promoter and working partner Mr. S.Anil Kumar, has filed A.A. No.15 of 2024 against Mr. G. Vibby and Mr. G. Chakradhar, seeking appointment of Arbitrator to adjudicate its claims including but not limited to indemnification, specific performance of the respondent's/Mr. G. Vibby and Mr. G. Chakradhar duties and obligations as per the clauses of the DAGPA dated 06.02.2017, rectification deed and to resolve the said disputes.

4. The said G.K. Raju and G.Vibby, have entered into a registered DAGPA bearing Doc.No.272 of 2017, dated 06.02.2017 with M/s. Cresco Housing Projects and partnership firm represented by its partners Mr. Shyamsunder Baheti, Mr. D.Narsimha Rao and Mr. S.Anil Kumar, with regard to development of land admeasuring Ac.21.31guntas comprising of Ac.09.09guntas in Sy.Nos.317/A, 317/AA/1, 317/AA/2, 317/AA/3, 317/E; Ac.05.17guntas in Sy.Nos.324/A/2 and 324/E; Ac.6.05guntas in Sy.Nos.324/AA/2A, 324/AA/3A, 324/AA/2, 324/AA/3 and Ac.2.00guntas in Sy.No.324/E/3 situated in Singapur Village, Shankarpally Mandal, Ranga Reddy District (for short, 'the subject property'). They have also entered into supplementary agreements for Phase-1 and Phase-2 on the same day of the said property. Mr. G.Chakradhar had executed a rectification deed bearing document No. 4510 of 2022 dated 27.08.2022 in favour of M/s. Cresco Housing Projects represented by the aforesaid three partners.

(For the sake of convenience, the parties hereinafter are referred to as arrayed in A.A. No.155 of 2023).

5. As per said DAGPA, 1st respondent/ M/s. Cresco Housing Projects, has to obtain necessary permits and shall complete the projects within 24 months from the date of obtaining the said permits. Three months grace period was also agreed therein.

6. According to 1st respondent, it could not complete the said projects due to pendency of litigation in several suits including O.S. No.107 of 2015, O.S. No.385 of 2022 and other issues. But according to the Applicants, the said issues will not come in the way of respondent in obtaining necessary permits and completing project. Even then, respondent failed to complete the project in terms of the said DAGPA and supplementary agreements all dated 06.02.2017 and therefore, vide legal notice dated 01.07.2023, the Applicants have cancelled and revoked the said DAGPA and the supplementary agreements all dated 06.02.2017.

7. According to the Applicants, their father Mr.G.K. Raju, died on 09.02.2018. In view of the said disputes, they have executed two unregistered irrevocable GPAs dated 27.07.2020 and also SPAs dated 26.08.2022 in favour of Sri N.Ravinder Reddy. According to the Applicants, clause No. 14.5 of DAGPA, dated 16.02.2017 deals with governing law and dispute resolution mechanism besides arbitration clause. Therefore, they have issued legal notice dated 01.0