Public excerpt
OMP (ENF.) (COMM.)/82/2023 of M/S PCI LIMITED Vs PRIME MEIDEN LIMITED - High Court of Delhi (High Court of Delhi)
Court: High Court of Delhi (High Court of Delhi)
Case: DLHC010165722023
Parties: OMP (ENF.) (COMM.)/82/2023 of M/S PCI LIMITED Vs PRIME MEIDEN LIMITED
Pages: 4
Characters (full): 6620
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IN THE HIGH COURT OF DELHI AT NEW DELHI
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OMP (ENF.) (COMM.) 82/2023
M/S PCI LIMITED
..... Decree Holder
Through:
Mr. Upinder Singh, Mr. Sharanya
Bhatnagar, Advs.
versus
PRIME MEIDEN LIMITED
..... Judgement Debtor
Through:
Mr. Rajesh Rai, Mr. Rohan Rai,
Advs.
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
O R D E R
%
03.01.2024
1.
This is a petition seeking execution of the award dated 11.07.2022 read
with additional award dated 31.08.2022 passed by the learned Sole
Arbitrator.
2.
As per the decree holder, a sum of Rs. 2,04,16,666/- along with interest
at the rate of 9% from 01.09.2022 till date of payment is due and
payable against the judgment debtor.
3.
It is stated that the same has not been paid.
4.
Mr. Rohan Rai, learned counsel for the JD states that the respondent
had preferred a petition under Section 34 of the Arbitration and
Conciliation Act, 1996. The arguments have been concluded in the
matter and the judgment has been reserved. It is therefore prayed that
the petition may be deferred to await the outcome of Section 34 of the
Arbitration and Conciliation Act, 1996.
5.
He further states that the decretal amount stands paid vide set off of
debit note bearing Nos. 1/18 and 2/18.
6.
The same is opposed by Mr. Singh, learned counsel for the decree
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holder.
7.
I am unable to subscribe to the views of the JD.
8.
As regards the set off is concerned, the arbitral award is dated
11.07.2022 and these objections were raised by the respondent before
the Sole Arbitrator and adjudicated upon. It is only thereupon that the
final award has been passed by the learned Arbitrator.
9.
As regards pendency of Section 34 objections are concerned, I may rely
upon the judgment of the Hon‟ble Supreme Court in “Hindustan
Construction Company Limited & Anr. vs. Union of India & Ors.”
passed in WP(C) No. 1074/2019 and more particularly paragraphs 25,
26 and 30 which read as under:-
“25.
To state that an award when challenged under
Section 34 becomes unexecutable merely by virtue of such
challenge being made because of the language of Section 36 is
plainly incorrect. As has been pointed out hereinabove,
Section 36 was enacted for a different purpose. When read
with Section 35, all that Section 36 states is that enforcement
of a final award will be under the CPC, and in the same
manner as if it were a decree of the Court. In fact, this is how
Section 36 has been read by a three-judge bench in Leela
Hotels Ltd. V. Housing and Urban Development Corporation
Ltd. (2012) 1 SCC 302 as follows:
“45. Regarding the question as to whether the award of
the learned arbitrator tantamounts to a decree or not, the
language used in Section 36 of the Arbitration and
Conciliation Act, 1996, makes it very clear that such an
award has to be enforced under the Code of Civil
Procedure in the same manner as it were a decree of the
court. The said language leaves no room for doubt as to
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the manner in which the award of the learned arbitrator
was to be accepted.”
26.
To read Section 36 as inferring something negative,
namely, that where the time for making an application under
Section 34 has not expired and therefore, on such application
being made within time, an automatic-stay ensues, is to read
something into Section 36 which is not there at all. Also, this
construction omits to consider the rest of Section 36, which
deals with applications under Sect
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