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[Cites 1, Cited by 4]

Delhi High Court - Orders

Shapoorji Pallonji And Co. Pvt. Ltd vs Sinnar Thermal Power Limited on 13 October, 2020

Author: Rekha Palli

Bench: Rekha Palli

                                                                              Via video conferencing
                          $~OS-6
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     ARB. A. (COMM.) 18/2020
                                SHAPOORJI PALLONJI AND CO. PVT. LTD. ..... Petitioner
                                             Through: Mr.Ciccu Mukhopadhaya, Sr. Adv.
                                                       with Mr.Abhijeet Sinha, Mr.Animesh
                                                       Sinha,       Mr.Omung        Gupta,
                                                       Mr.Siddharth Dey & Ms.Rashmi
                                                       Gogoi, Advs.

                                                      versus

                                SINNAR THERMAL POWER LIMITED                         ..... Respondent
                                            Through: None.

                                CORAM:
                                HON'BLE MS. JUSTICE REKHA PALLI

                                             ORDER

% 13.10.2020 IA No.7716/2020

1. Exemption allowed, subject to all just exceptions.

2. The application stands disposed of.

ARB. A. (COMM.) 18/2020 & IA No.7928/2020

3. This is an appeal under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996, preferred by the claimant before the learned Tribunal, assailing the order dated 29.07.2020 to the extent its claim for directions to the respondent to deposit the claimed amount of Rs.62.19 crores has been rejected.

4. Learned Senior counsel for the appellant submits that the learned Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:13.10.2020 22:27:23 Tribunal has failed to appreciate the fact that the balance-sheet of the respondent for the year 2018-2019, itself shows the precarious financial situation of the respondent as not only were there no receivables from the operation in the said year, but even the value of its assets has been consistently diminishing. He submits that the learned Tribunal has also failed to appreciate that the respondent had denied the claim of the appellant, which was based on the RA bills in an evasive manner, making it evident that there was no real denial to the appellant's claim. He further submits that since evidence is yet to be recorded, the arbitral proceedings are still likely to take time and, therefore, non-issuance of any directions to the respondent to at least furnish a solvent security towards the claimed amount is likely to render any eventual award in favour of the appellant a mere paper decree.

5. On the appellant taking steps, issue notice to the respondent by all permissible modes, returnable on 17.12.2020.

6. Reply, if any, be filed within four weeks. Rejoinder thereto, if any, be filed within two weeks thereafter.

7. Needless to say the pendency of the present petition will not, in any manner, effect the ongoing arbitration proceedings.

REKHA PALLI, J OCTOBER 13, 2020 gm Signature Not Verified Signed By:GARIMA MADAN Location: Signing Date:13.10.2020 22:27:23