MR S GNANASEKARAN vs S S FOUNDATIONS PRIVATE LIMITED REP BY ITS MANAGIN

OA Nos. 333 & 334 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON
PRONOUNCED ON
24.08.2026
16.10.2026
CORAM
THE HON'BLE MR.JUSTICE K.KUMARESH BABU
OA Nos. 333 & 334 of 2026
O.A.No. 333 of 2026
1. S Gnanasekaran
2. K Selvarajan
3. J Sathya Satchi
4. Prabhakaran
..Applicant(s)
Vs
S & S Foundations Private Limited,
Rep. by its Managing Director,
Mr Sathyanarayanan,
S/o.Sundara Raja, No.45, Giriyappa Road,
T.Nagar, Chennai 600 017.
..Respondent(s)
PRAYER:- Original Application filed to pass an order of injunction restraining
the respondents or his men, agents, or anybody acting on his authority to
transfer, alienate, encumber or sell the property more fully described hereunder
to any third party from alienating the property which is to be mortgaged with
the applicant.
For Applicant(s) : Mr.V.Raghavachari
Senior Counsel
for Mr.V.Balasubramani
For Respondent(s) : Mr.Sharath Chandran
OA No. 334 of 2026
S & S Foundations Private Limited,
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OA Nos. 333 & 334 of 2026
Rep. by its Managing Director,
Mr Sathyanarayanan,
S/o.Sundara Raja, No.45, Giriyappa Road,
T.Nagar, Chennai 600 017.
..Applicant(s)
Vs
1. S Gnanasekaran
2. K Selvarajan
3. J Sathya Satchi
4. Prabhakaran
..Respondent(s)
PRAYER:- Original Application filed to pass an order of Injunction in the
nature of ANTI-ARBITRATION INJUNCTION restraining the respondents
from commencing second Arbitration proceedings in respect of the MOU dated
09/05/2013 and the Supplemental Agreement dated 27/06/2014, pursuant to the
Lawyers Notice dated 28/03/2026.
For Applicant(s): Mr.Sharath Chandran
For Respondent(s): Mr.V.Raghavachari
Senior Counsel
for Mr.V.Balasubramani
COMMON ORDER
The Original Application in OA.No.333 of 2026 has been filed seeking to
pass an order of injunction restraining the respondents or his men, agents, or
anybody acting on his authority to transfer, alienate, encumber or sell the
property more fully described hereunder to any third party from alienating the
property which is to be mortgaged with the applicant.
2. The Original Application in OA.No.334 of 2026 has been filed seeking
to pass an order of Injunction in the nature of ANTI-ARBITRATION
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OA Nos. 333 & 334 of 2026
INJUNCTION restraining the respondents from commencing second
Arbitration proceedings in respect of the MOU dated 09.05.2013 and the
Supplemental Agreement dated 27.06.2014, pursuant to the Lawyers Notice
dated 28.03. 2026.
3. In a post-Award scenario, an application by the Award Debtor had
been taken out for an injunction. On the other hand, the Award Holder had
taken out an application for grant of anti arbitration injunction to restrain the
Award Debtor from initiating the second arbitration proceedings. In that regard,
the applications are being taken up together and the parties are referred to as
Award Holder and Award Debtor.
4. Heard Mr.V.Raghavachari, learned Senior Counsel appearing on behalf
of Mr.V.Balasubramani, learned counsel appearing for Award Debtor and
Mr.Sharath Chandran, learned counsel appearing on behalf of Award Holder.
5. Mr.V.Raghavachari, learned Senior Counsel appearing for the Award
Debtor would submit that the parties have entered into a Memorandum of
Understanding as early as on 09.05.2013 which was also supplemented by a
further supplemental Memorandum of Understanding on 27.06.2014. He would
submit that as per the said Memorandum of Understanding, the Award Holder
had agreed to pay a sum of Rs.35,00,000/- per Acre and the Award Debtors
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OA Nos. 333 & 334 of 2026
have already sold 39.28 Acres to the Award Holder. He would submit that only
a part payment had been made by the Award Holder and had failed to honour
the Memorandum of Understanding between the parties. He would further
submit that an arbitration proceedings was to resolve the dispute between the
parties were initiated on the dispute that arose under the Memorandum of
Understanding and the subsequent supplemental Memorandum of
Understanding and an Award came to be passed on 29.05.2019. Even though,
under Section 34, the Award was interfered, a Division Bench of this Court had
over-turned the order of the learned Single Judge and affirmed the same and the
Special Leave Petition filed against the same came to be dismissed by the
Hon’ble Apex Court. He would further submit that thereafter, the Award Debtor
had also initiated a suit in O.S.No.83 of 2024 seeking for a permanent
injunction and the same had been stayed by this Court in CRP.No.2039 of 2025.
In that scenario, the Award Holder had initiated an Execution Petition seeking
attachment and sale of the immovable property owned by one of the Award
Debtor.
6. He would vehemently contend that various disputes that had arose
between the parties were not the subject matter of the earlier arbitral
proceedings which had prompted the Award Debtor to issue a fresh notice under
Section 21 of the Arbitration and Conciliation Act which is yet to be replied to
by the Award Holder and in that regard seeking to protect the interest of the
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OA Nos. 333 & 334 of 2026
Award Debtors, he seeks for an injunction restraining the Award Holder from in
any manner transferring, alienating or encumbering or selling the Judges
summon mentioned properties. Hence, he prays this Court to pass appropriate
orders.
7. Further, the learned Senior Counsel would submit that there can be no
injunction restraining a party from seeking to remedy his grievances. In that
regard, when there was a cause of action that is subsisting with the litigant, that
in this particular facts of the case, the cause of action to receive the unpaid
consideration would be still available with the Award Debtors and therefore,
this Court ought not to entertain the anti-injunction application as filed by the
Award Holder.
8. Countering his arguments, Mr.Sharath Chandran, learned counsel
appearing for the Award Debtors would at the outset submit that the claim for
injunction of properties covered under the Memorandum of Understanding and
supplemental Memorandum of Understanding which was the subject matter of
earlier arbitral proceedings which had attained finality is an attempt made by the
Award Holder to dislodge the benefits that had been vested with the Award
Holder.
9. Learned counsel appearing for the Award Holder would submit that the
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OA Nos. 333 & 334 of 2026
disputes between the parties which arose out of the Memorandum of
Understanding and the supplemental Memorandum of Understanding had
culminated into an Award being passed and the Award had attained finality as
both the SLP and Review Petition filed by the Award Debtors had been
dismissed. He would submit that thereafter, an order of attachment in the
Execution proceedings was also made and the Award Debtors had initiated a
suit for permanent injunction which is a similar relief that had been sought
before this Court. A Revision had been filed for striking off the plaint as being
an abuse of process of Court and this Court had granted stay of all further
proceedings in the suit in CRP.No.2039 of 2025. Only thereafter, a notice under
Section 21 had been triggered with respect to a dispute that had already been
resolved between the parties under the arbitration proceedings on the very same
allegations that the suit had been laid.
10. He would submit that the claim of new cause of action is wholly
without any merits and is being made to avoid and delay the execution
proceedings. He would submit that the attempts made by the Award Debtors are
nothing short of abuse of process of Court in trying to resurrect a dispute which
has already been resolved through a validly held arbitral proceedings which had
become final and binding between the parties. Hence, he seeks dismissal of the
application filed by the Award Debtors and grant an injunction against them
from initiating any further arbitral proceedings.
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OA Nos. 333 & 334 of 2026
11. I have considered the submissions made by the learned counsels
appearing on either side and perused the materials available on record before
this Court.
12. There is no dispute with regard to the Memorandum of Understanding
and supplemental Memorandum of Understanding that had been entered
between the parties. Disputes had arisen under the said Memorandum of
Understandings in which an Award came to be passed and became final and
binding on the parties when the Review filed before the Hon’ble Apex Court by
the Award Debtors came to be dismissed.
13. It is the claim of the Award Debtors that their application for
injunction has arose out of a fresh cause of action that prevails arising out of the
said Memorandum of Understandings which necessitated them for issuance of a
notice under Section 21 for initiation of a fresh arbitral proceedings. It is not
disputed by them that they had earlier approached a Civil Court for the relief of
injunction in respect of various properties including the properties covered
under the injunction application filed by them.
14. When that be the factual scenario, a conceptual reading of the plaint
as filed by the Award Debtors would reveal that a suit had been based upon the
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OA Nos. 333 & 334 of 2026
said Memorandum of Understandings and the transactions that had happened
between the parties pursuant thereto. The Section 21 notice that had been
triggered by the applicant based upon which the present Section 9 application
filed by them is based upon their claim with regard to 26.17% of share in the
properties appended to the Judges summons. Already having approached a Civil
Court, the attempt made by the Award Debtors again to invoke the provisions of
Section 9 particularly after the stay of the further proceedings in the suit by this
Court in a Civil Revision Petition would only lead this Court to believe that the
Award Debtors had frantically attempting to thwart the rights of the Award
Holder from executing the decree. Having invoked the civil jurisdiction by
approaching the competent Civil Court for the reliefs that is to be granted under
the Memorandum of Understanding and the supplemental Memorandum of
Understanding cannot be allowed to invoke the arbitration clause under the very
same Memorandum of Understanding. Approaching the Civil Court would only
indicate that the Award Debtors have waived their statutory right of invoking
the arbitration clause that had been agreed upon between the parties. In that
regard, this Court is of the view that the claim raised by the Award Holder that a
second arbitration that is sought to be initiated by the party on the very same
document need not be gone into.
15. Having approached a Civil Court for an identical relief, the Award
Debtors cannot be allowed to abuse the of process of Court by taking recourse
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OA Nos. 333 & 334 of 2026
for the very same dispute under the Section 9 of the Arbitration Act and in that
regard, the Award Holder is also entitled for a grant of anti-injunction from
invoking a fresh arbitration.
16. For the fore-going reasons, O.A.No.333 of 2026 stands dismissed and
O.A.No.334 of 2026 is allowed and there shall be an order of injunction
restraining the respondents therein from commencing any fresh arbitral
proceedings in respect of Memorandum of Understanding dated 09.05.2013 and
the Supplemental Agreement dated 27.06.2014 pursuant to the Section 21 notice
dated 28.03.2026. However, there shall be no order as to costs.
16.10.2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
GBA
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OA Nos. 333 & 334 of 2026
K.KUMARESH BABU J.
GBA
OA Nos. 333 & 334 of 2026
16.10.2026
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