IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE P. SAM KOSHY Arbitration Application No.13 of 2025 Date of order : 01.04.2026 BETWEEN :

M/s.KLR Industries Ltd. and 8 others … Applicants and M/s.Legend Estates Pvt. Limited and another … Respondents

ORDER :

The instant Arbitration Application has been filed by the applicants under Section 11(5) & (6)(6A) of the Arbitration and Conciliation Act, 1996 praying the Court to appoint an arbitrator on behalf of applicants and respondents to adjudicate the claims and disputes arising under the Registered Development Agreement-cum-General Power of Attorney, vide Document No.6414 of 2014, dated 14.11.2014, and to award costs of application.

2. Heard Mr. M. Sreyas Reddy, learned counsel for the applicants; and Mrs.Manjari S. Ganu, learned counsel for the respondents.

3. The brief facts leading to filing of instant arbitration application by the applicants is that applicants herein are absolute owners and possessors of land admeasuring 3296 Sq.yds. (or) 27 guntas and 29 Sq.yds., purchased by the applicants under various registered sale deeds. The said land is an extent of Acs.2.11 gts. and 57 Sq.yds. situated in Survey Nos.126/A & AA, 199/A & AA, 201, 204/AA to 206/A, AA, E, EE, U, UU, 206/P, 209 and 210, situated at Kokapet Village, Rajendranagar Mandal, Ranga Reddy District.

4. The respondent No.1, after enquiring with the applicants’ title and possession over the above subject properties, had approached the applicants with an intention to develop the above subject lands. After negotiations, the applicants have agreed for the proposal put up by the respondents, and accordingly a registered Development Agreement-cum- General Power of Attorney, vide Document No.6414 / 2014, dated 12.12.2014, was entered into between the applicants and respondents for development of the subject lands. Under the said agreement, the applicants are entitled for 50% of the villas in the gated community. It was further agreed by both parties that the respondents shall handover the villas allotted to applicants within a period of 36 months from the date of obtaining sanction and permission from the Hyderabad Metropolitan Development Authority, with a further grace period of 6 moths.

5. Learned counsel for the applicants contended that since the date of entering into development agreement, the respondents have delayed execution of the project in constructing villas; the respondents, contrary to the terms of development agreement, have alienated open plot Nos.196, 197 part, 202 part and 203 admeasuring 1,506 Sq.yds and 197 part, 198, 201 and 202 part admeasuring 1,506 Sq.yds., under two sale deeds vide Document No.781 of 2015 and 783 of 2015, dated 11.02.2015; aggrieved, the applicants lodged a police complaint dated

05.01.2020.

6. Learned counsel for the applicants further contended that the applicants have been following up with respondents for successful completion of the project; since the respondents have failed in completion of villas, the applicants decided to accept / receive the construction value as per the existing market rates from respondents so as to enable the applicants to complete the construction work on their own; despite best efforts put in by the applicants in pursuing the respondents to complete the project within time and to deliver 50% share of villas to the applicants, the respondents till date have not taken steps to complete the project as was agreed between the parties under the said Development Agreement; accordingly, a legal notice was issued to the respondents by the applicants on 09.09.2024 calling upon the respondents to make payment towards value of the construction and damages calculated in favour of applicants along with interest @ 24% per annum within 15 days from the date of receipt of notice as per terms and conditions of the Development Agreement, dated 14.11.2014; despite receipt of the said notice by the respondents, the respondents have failed