THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY C.M.A.No.3699 of 2003 JUDGMENT: The respondent filed O.S.No.13 of 2001 in the Court of Principal District Judge, Nalgonda, against the appellants, for recovery of a sum of Rs.33,56,837/-. The respondent was awarded a contract of construction of earth dam for Akkampally Balancing Reservoir, between 3.500 to 4.991 K.M. The value of the contract was Rs.1,79,16,834/-. The appellants stated that they were entitled to be paid certain amount, representing the difference between rates etc. A sum of Rs.5,65,338/- was deposited by the respondent with the appellants, as security deposit. Apprehending that the appellants would take steps to recover that amount, the respondent filed I.A.No.1096 of 2002, under Order 39 Rule 1 C.P.C., with a prayer to grant temporary injunction restraining the appellants from recovering the said amount. After contest by the appellants, the trial Court allowed I.A., through order dated 30.07.2002. Hence, this Miscellaneous Appeal, under Order 43 Rule 1 C.P.C. Heard learned Government Pleader for Arbitration and Sri C.V.Mohan Reddy, learned counsel for the respondent. The claim made by the respondent is for recovery of a sum of Rs.33.5 lakhs. In terms of the agreement, the respondent deposited Rs.5.65 lakhs. The respondent apprehended that the said amount would be recovered, even while the suit is pending. The trial Court took note of the fact that the claim made by the respondent is far exceeding the amount, which is sought to be recovered, and allowed the I.A. It may be true that the two amounts stand on a different footing. All the same, the amount deposited by the respondent cannot be forfeited, or recovered, even while the suit is pending. Instead, in case the suit is decreed in its entirety, or in its part, the amount can be given credit to. On the other hand, if the suit is dismissed, it can be recovered straight away. It is not known as to whether the suit is still pending. Hence, the C.M.A. is dismissed. In case the suit is still pending, the trial Court shall take into account the amount of Rs.5,65,338/-, made as security deposit by the respondent. On the other hand, if the suit is dismissed, it shall be open to the appellants to recover the said amount. There shall be no order as to costs. ______________________ L.NARASIMHA REDDY, J Dated:19.08.2010 GJ