CMP/16590/2026 of M.Ranjani Vs R. Usha Rani on 10 September 2026

COMMON ORDER

(Order of the Court was made by P.Velmurugan J.) The petitioners have filed the present petitions seeking permission of this Court to return the original Fixed Deposits, standing in their name which was deposited before this Court.

2. The learned counsel for the petitioners would submit that initially the petitioners have filed a suit in C.S.No.263 of 2022 for partition. The respondents 1 and 2 have filed an application in O.A.No.624 of 2023 in C.S.No.263 of 2022 under Section 8 of the Arbitration and Conciliation Act, 1996 and the said application was allowed by this Court by appointing an Arbitrator to arbitrate the dispute between the parties. Against which the petitioners have filed an appeal in O.S.A.No.38 of 2024. When the appeal came up for hearing on 05.03.2024, this Court directed the petitioners herein to deposit the amount received by them from the respondents 1 and 2 in a fixed deposit in their name and produce the receipt. In compliance of the same, the petitioners had made a fixed deposit for a sum of Rs.1,00,00,000/- each and produced Fixed Deposit Receipts in TDR No.T23/MTDK 0866466 dated 14.03.2024 and in TDR No.T23/MTDK 0866407 dated 14.03.2024. When the appeal came up for hearing on 04.10.2024, this Court dismissed O.S.A.No.38 of 2024. Aggrieved over the same, the petitioners have filed a Review Application No.336 of 2024 and the same was also dismissed on 07.04.2025. Challenging the orders passed in O.S.A.No.38 of 2024 and Review Application No.336 of 2024, the petitioners have filed S.L.P.(Civil) Diary No.22503 of 2025 before the Hon’ble Supreme Court and the same was dismissed. As the application seeking appointment of an Arbitrator has been confirmed, and the appeal against the said application in O.S.A. No. 38 of 2024, as well as Review Application No. 336 of 2024, has been dismissed, the purpose for which the Fixed Deposit was made no longer survives. Hence, the petitioners are entitled to return of the original Fixed Deposit Receipt.

3. The learned Senior Counsel for the respondents 1 and 2 would submit that based on the Memorandum of Understanding entered into between the parties, there was a dispute and the respondents have filed an application under Section 8 of the Arbitration Act in O.A.No.624 of 2023 and the same was allowed and the matter was referred to Arbitrator. The said order was challenged in O.S.A.No.38 of 2024 and this Court directed the petitioners to deposit the amount in a Fixed Deposit and produce the Deposit Receipts and the petitioners had also made a Fixed Deposit and the Deposit Receipts were also produced before this Court. The petitioners have earlier made applications before the Division Bench of this Court and this Court vide order dated 27.06.2025 rejected the same and suggested the parties to approach the Arbitrator with regard to the payment. Now the matter is pending before the learned Arbitrator and the petitioners can very well approach the Arbitrator as suggested by this Court. Therefore, the present applications are liable to be dismissed.

4. We have heard both sides and perused the materials available on record.

5. Admittedly, the petitioners have filed a suit in O.S.No.263 of 2022 for partition wherein, an application was filed under Section 8 of the Arbitration and Conciliation Act in O.A.No.624 of 2023 for appointment of Arbitrator and the same was allowed. Against which the petitioners filed an appeal in O.S.A.No.38/2024 in which this Court directed the petitioners to make a Fixed Deposit in their name and in compliance of the same, the petitioners each have made a Fixed Deposit for a sum of Rs.1,00,00,000/- and produced the Fixed Deposit Receipts. Thereafter, the Original Side Appeal was dismissed by this Court. The petitioners have preferred an SLP before the Hon’ble Supreme Court and the same was dismissed. Thereafter, the petitioners have filed applications in C.M.P.No.10448 & 10449 of 2025 before this Court seeking permission to return the Fixed Deposit Receipts withdraw the said amount. This Court, on 27.06.2025, has made the following observations in those applications: “ .. 2. Since the parties have expressed before the Supreme Court that they would explore the possibility of an amicable settlement before the Supreme Court Mediation Centre or, if not fruitful, pursue the remedy of arbitration thereafter, we close C.M.P.Nos.10448 & 10449 of 2025. The parties may pursue their request in regard to the payment out that they seek either before the mediator / arbitrator as per the final outcome of the matter before the Supreme Court.”

6. However, the learned counsel for the petitioners would submit that the petitioners have approached the Arbitrator as suggested by this Court vide order dated 27.06.2025 and the Arbitrator is hesitating to pass an order with regard to the payment out as sought by the petitioners. Hence, the petitioners have filed the present petitions seeking to return the Fixed Deposit Receipts.

7. Since the subject matter is pending before the learned Arbitrator, and the Fixed Deposit was made pursuant to the interim order passed in O.S.A. No. 38 of 2024, which has subsequently been dismissed and has attained finality, the amount deposited pursuant to the said interim order has no bearing on, or connection with, the pending arbitration proceedings. However, it is open to the petitioners to file application before the Arbitrator for payment out and on such application being filed, the learned Arbitrator is at liberty to proceed with the same independently on merits and in accordance with law and pass appropriate orders.

8. With the above observations and directions, these petitions are disposed. (P.V.,J.) (G.K.M.,J.) 10-09-2026 (1/3) BKN

P.VELMURUGAN J. AND GK.MUTHUKUMAAR J. BKN To:

1. The Joint Sub - Registrar - II Thousand light, Chennai.

2. The Sub-Registrar Singampunari, Sivagangai District. CMP No. 16590 of 2026 AND CMP NO. 16596 OF 2026 in OSA NO. 38 OF 2024 10-09-2026