IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD FRIDAY, THE FOURTH DAY OF MARCH TWO THOUSAND AND ELEVEN PRESENT THE HON'BLE SRI JUSTICE K.C. BHANU CIVIL REVISION PETITION No.1426 OF 2010 Between: The New India Assurance Company Limited .....PETITIONER AND M/s. Bhagyanagar Ventures Limited ....RESPONDENT The Court made the following: THE HON’BLE SRI JUSTICE K.C. BHANU CIVIL REVISION PETITION No.1426 OF 2010 ORDER: This Civil Revision Petition, under Article 227 of the Constitution of India, is directed against the order, dated 30.09.2008, in I.A.No.3218 of 2008 in O.S.No.125 of 2008, on the file of I Additional Chief Judge, City Civil Court, Secunderabad, whereunder and whereby, the petitioner/defendant was directed to furnish security for Rs.11,79,025.40 ps. and to show cause as to why it shall not be directed to furnish security for the above said amount and if it fails to furnish the security, the petition schedule property will be attached. 2. Heard both sides. 3. The impugned order is not in consonance with Order XXXVIII Rule 5 of the Code of Civil Procedure, 1908. Court must be satisfied that the defendant is about to dispose of whole or any part of his property or about to remove whole or any part of his property from the local limits of the jurisdiction of the Court, with a view to cause obstruction or delay in the execution of any decree that may be passed against him. The impugned order consists of two parts viz., (i) defendant is directed to furnish security for Rs.11,79,025.40 ps. (ii) show cause as to why it shall not be directed to furnish security for the said amount. First direction is not in accordance with law. The second direction ought not to have been given, as the defendant is a nationalized Insurance Company against which there is no allegation that it was removing the movables out of the jurisdiction of the Court. 4. An order passed by a Court should contain reasons. Right to reason is an indispensable part of a sound judicial system. Failure to give reasons amounts to denial of justice. The party must know why the decision has gone against him. As seen from the impugned order, no reasons are assigned. Therefore, in the absence of any reasons, the impugned order is liable to be set aside. 5. Accordingly, the Civil Revision Petition is allowed setting aside the impugned order, dated 30.09.2008, in I.A.No.3218 of 2008 in O.S.No.125 of 2008, on the file of I Additional Chief Judge, City Civil Court, Secunderabad, and remanding the matter to the trial Court to pass appropriate orders after giving opportunity to both the parties. The trial Court is directed to dispose of the I.A. within a period of four weeks from the date of receipt of a copy of this order. There shall be no order as to costs. _______________ K.C. BHANU, J March 04, 2011 Note: Issue C.C. in one week. B/O.MD THE HON'BLE SRI JUSTICE K.C. BHANU CIVIL REVISION PETITION No.1426 OF 2010 March 04, 2011