IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE SRI JUSTICE PULLA KARTHIK WRIT PETITION No.7583 OF 2026

12^th MARCH, 2026.

Between:

Goka Raju and 5 others.

…Petitioners AND The State of Telangana, Rep. by its Principal Secretary, Stamps & Registration Department, Secretariat, Hyderabad and 2 others.

…Respondents

O R D E R :

With the consent of both parties, this Writ Petition is taken up for disposal at the stage of admission.

2. Challenging the Award dated 12.08.2025 in A.A./C.F/NO/MNL.NLG : 364 of 2024 passed by respondent No.2-Deputy Registrar/Arbitrator, Nalgonda, the petitioners filed the present Writ Petition.

3. Heard Sri P.Venkanna, learned counsel for the petitioners and Ms. S. Sravanthi, learned Assistant Government Pleader for Stamps and Registration, appearing for the respondents.

4. Learned counsel for the petitioners submits that petitioner No.1 joined as a member in Chit Series No.MVLB- 18, Ticket No.28, for a chit value of Rs.10,00,000/-, payable at Rs.20,000/- per month for a period of 50 months, after executing the requisite chit agreement. It is further submitted that petitioner No.1 became the successful bidder in the auction held on 16.05.2022 and agreed to forego a sum of Rs.3,59,000/- out of the chit value of Rs.10,00,000/-. Subsequently, petitioner No.1 furnished petitioner Nos.2 to 6 as sureties towards the future liability and executed an agreement of guarantee along with a promissory note. It is further submitted that petitioner No.1 paid only 27 installments out of the total 50 installments and thereafter committed default in payment of the remaining installments. Consequently, respondent No.3 filed a dispute, being A.A./C.F./No./MNL.NLG: 364 of 2024 and an ex-parte Award dated 12.08.2025 came to be passed, holding that respondent No.3 is entitled to recover an amount of Rs.5,25,300/- along with interest at 18% per annum, payable by the petitioners.

Learned counsel contends that respondent No.2 passed the impugned Award dated 12.08.2025 without serving proper notices or summons upon the petitioners and further awarded an exorbitant rate of interest at 18% per annum. It is also contended that even after passing the impugned Award, respondent No.2 failed to comply with the mandate of Section 31(5) of the Arbitration and Conciliation Act, which requires that a signed copy of the arbitral award be delivered to each party after the award is made. It is further submitted that the petitioners have filed Chit Appeal No.6003 of 2026 before respondent No.1 and no orders have been passed by respondent No.1 so far. However, the petitioners are in an apprehension that respondent No.3 may initiate execution proceedings based on the said ex-parte Award and obtain ex- parte attachment orders against the petitioners. Therefore, learned counsel prays this Court to pass necessary orders in the present Writ Petition.

5. Learned Government Pleader appearing on behalf of the respondents fairly submits that since the Chit Appeal No.6003 of 2026 filed by the petitioners is pending consideration, respondent No.1 will pass appropriate orders, in accordance with law.

6. Having regard to the submissions made by learned counsel for the respective parties, without expressing any opinion on the merits of the case, this Writ Petition is disposed of directing respondent No.1 to dispose of the Chit Appeal No.6003 of 2026 filed by the petitioners, strictly in accordance with law, as expeditiously as possible, preferably within a period of six (6) weeks from the date of receipt of a copy of this order. Till the disposal of the said appeal, the operation of the Award dated 12.08.2025 in A.A./C.F/NO/MNL.NLG : 364 of 2024 passed by respondent No.2 shall remain stayed.

Miscellaneous petitions, if any, pending shall stand closed. There shall be no order as to costs.

____________________ PULLA KARTHIK, J Date : 12.03.2026.

Note : Issue C.C. forthwith.

B/o.TMK