N. Srinivasa vs M/S. Kuttukaran Machine Tools Ltd

The Supreme Court held that the agreement for sale between the appellant and the respondent was valid under the Arbitration and Conciliation Act, 1996, and emphasized the obligation of the seller to deliver vacant possession and clear encumbrances before the sale deed execution. The Court found that the High Court erred in vacating the status quo order without considering the respondent's failure to fulfill contractual obligations, thus reinstating the status quo pending arbitration. The appeal was allowed, and the High Court's order was set aside.