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Airports Authority Of India vs Tdi International India Pvt. Limited on 8 March, 2021

Author: Sanjeev Narula

Bench: Sanjeev Narula

                          $~24
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +      O.M.P. (COMM) 573/2020
                                 AIRPORTS AUTHORITY OF INDIA                            ..... Petitioner
                                                   Through:     Mr. K.K. Rai, Senior Advocate with
                                                                Mr. Vaibhav Kalra, Ms. Neha
                                                                Bhatnagar and Mr. Varun Kalra,
                                                                Advocates.

                                                   versus

                                 TDI INTERNATIONAL INDIA PVT. LIMITED      ..... Respondent
                                               Through: Mr. Ashish Mohan, Advocate.

                                 CORAM:
                                 HON'BLE MR. JUSTICE SANJEEV NARULA
                                         ORDER

                          %              08.03.2021

                          [VIA VIDEO CONFERENCING]

I.A. 3304/2021 (for seeking permission to withdraw the deposited amounts on behalf of the respondent)

1. By way of this application, as noted in the Order dated 3rd March, 2021, Applicant/ Respondent seeks a direction for release of an amount of INR 9,68,48,000/- out of the amount lying deposited before this Court. Pursuant to the afore-noted Order, the Petitioner has filed a short reply opposing the request made in the application.

2. Briefly put, the Respondent has succeeded in the arbitration proceedings and there is an arbitral award rendered in his favor for an amount of INR 9,56,12,726/- along with interest @ 9% p.a. with effect from the date of the arbitral award [in the event the amount is not paid to the Respondent within 120 days from the date of the arbitral award]. This Court on 7th December, 2020, while granting the stay of the operation of the impugned award, directed the Petitioner to deposit the awarded amount along with up-to-date interest with the Registrar General of this Court. Consequently, on 24th February, 2021, the Petitioner has deposited a sum of INR 1,004,69,328/-, which is stated to be lying in a fixed deposit.

3. The Applicant/Respondent now seeks the release of a part of the said amount i.e., INR 9,68,48,000/-. As noted in the previous Order, the Applicant states that, in respect of the Concession Agreement relating to the Chennai International Airport, the Applicant has been called upon to replenish the security deposit by depositing the deficient amount of INR 9,68,48,000/-. Further, the Applicant submits that in order to secure the interest of the Petitioner, in the event the amount has to be restituted, the Respondent shall furnish a bank guarantee in the name of Registrar General of this Court for the amount which is sought to be released.

4. Mr. Rai, learned Senior Counsel for the Petitioner argues that, such a request should not be granted as the Respondent is a chronic litigant and has twelve ongoing arbitration proceedings with the Petitioner. He further submits that each Airport has an independent account and therefore, the reasons cited by the Applicant/Respondent for replenishing the security Signature Not Verified Digitally Signed O.M.P. (COMM) 573/2020 Page 2 of 4 By:SAPNA SETHI Signing Date:15.03.2021 12:01 deposit, are immaterial and the Court should not grant the request. He further submits that the Applicant has not even paid the Stamp Duty of the Arbitral Award. Mr. Rai states that since the amount deposited in the Court is earning interest, the release thereof, against bank guarantee, would not protect the Petitioners' right qua the component of future interest. Lastly, he submits that in any case the matter is listed on 12th April, 2021 for hearing of the present petition and the Court may hear the matter finally on the said date, instead of releasing the amount.

5. Mr. Mohan, learned counsel for the Respondent states that, the Stamp Duty has, in fact, been deposited and the objection is totally misconceived. He submits that the other objections raised by Mr. Rai, learned Senior Counsel for the Petitioner, are immaterial since the Petitioner's interest is being safeguarded as the Respondent is offering to furnish a bank guarantee.

6. Having heard the counsels for the parties, in the opinion of this Court, the request made by the Applicant/Respondent deserves to be allowed. Petitioner's interest is being adequately protected. Respondent is willing to give an undertaking that the amount sought to be released i.e., INR 9,68,48,000/- would be deposited by the Respondent with the Petitioner-Chennai International Airport for replenishing the security deposit. Thus, the amount would be credited back with the Petitioner, although under a different account.

7. Besides, the amount sought to be released, is being secured by a bank guarantee and therefore, it takes care of the component of interest which has Signature Not Verified Digitally Signed O.M.P. (COMM) 573/2020 Page 3 of 4 By:SAPNA SETHI Signing Date:15.03.2021 12:01 accrued till date on the deposited amount.

8. In view of the above, the application is allowed and the Registry is directed to release an amount of INR 9,68,48,000/- to the Respondent, subject to Respondent furnishing a bank guarantee in the name of Registrar General of this Court for the said amount. On the release of the amount, Respondent shall within a week deposit the same with Chennai International Airport for replenishing the security deposit. List before the Registrar General for accepting the bank guarantee, as and when the same is filed.

9. List on the date already fixed i.e., on 12th April, 2021.

SANJEEV NARULA, J MARCH 8, 2021 nk Signature Not Verified Digitally Signed O.M.P. (COMM) 573/2020 Page 4 of 4 By:SAPNA SETHI Signing Date:15.03.2021 12:01