Delhi High Court - Orders
Directorate General Of Hydrocarbons vs G. X. Technology Corporation on 21 May, 2024
Author: Neena Bansal Krishna
Bench: Neena Bansal Krishna
$~34
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ OMP (ENF.) (COMM.) 33/2024, EX.APPL.(OS) 193/2024
DIRECTORATE GENERAL OF HYDROCARBONS
..... Decree Holder
Through: Ms. Maninder Acharya, Senior
Advocate with Ms. Shreya Garg, Mr.
Deepesh, Ms. Niharica Khanna and
Mr. Kanwal Kochhar, Advocates.
versus
G. X. TECHNOLOGY CORPORATION ..... Judgement Debtor
Through: Mr. Karandeep Dahiya and Mr.
Navdeep Dahiya, Advocates.
CORAM:
HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA
ORDER
% 21.05.2024
1. Learned counsel for the decree holder submits that by virtue of the Arbitral Award, they have been granted only 30% of the Contract amount and the claim for 70% has been rejected by observing that the termination of the Contract done by the Union of India, was invalid. It is submitted that there are no objections filed against the Award of grant of 30% to the decree holder. The amount so lying in the ESCROW Account, which is not even 30%, may be directed to be released to the decree holder.
2. Learned counsel appearing on behalf of the Judgment Debtor has objected to the release of the amount lying in the ESCROW Account on the ground that firstly, the Award is not sufficiently stamped and secondly, the respondent Company has initiated Insolvency proceedings in U.S. and the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 00:41:58 moratorium period is already in place. It is submitted that the decree holder herein has filed their Claims before the concerned Court in U.S. and has, therefore, submitted itself to the jurisdiction of U.S.
3. Insofar as the insufficient stamping is concerned, it has been clarified by the learned Senior Advocate that the decree holder being Union of India, is not required to put the requisite stamp on the Award.
4. About, the release of the amount lying in the ESCROW Account, it has been clarified that there is no Section 34 of the Act, 1996 objections filed in regard to the release of the said amount. Insofar as the moratorium against the respondent is concerned, since there is no reciprocity with U.S. prima facie it does not obstruct the release of 30% in favour of the Decree Holder, without prejudice to the rights and contentions of the parties.
5. Learned Senior Advocate has further clarified that 30% of the Contract amount comes to about 15 Crores while the amount lying in the ESCROW Account with the State Bank of India (SBI) in the form of an FDR bearing CIF No.9007457293-7, is approx. Rs.10 Crores Five Lakhs besides the Suit. Since it is less than the amount which has been awarded to the Decree Holder the entire amount may be released.
6. Submissions heard.
7. In the circumstances that the Award in favour of the Decree Holder for 30% of Contract amount is not under challenge and the pendency of Insolvency proceedings in U.S. against the respondent, is no bar to the present proceedings.
8. It is hereby directed that the entire claim amount lying in the ESCROW Account, which is less than the amount granted to the Decree Holder subject to the condition that it should not be more than the decreed This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 00:41:58 amount, be released in favour of the Decree Holder subject to their submitting an Undertaking that it would abide by any directions in future in regard to this released amount.
9. Learned counsel for the Judgment Debtor seeks time to file reply.
10. Be filed within eight weeks with copy to the opposite counsel.
11. A copy of this order be sent to the SBI for compliance of this Order.
12. Be listed on 26.11.2024 for consideration.
NEENA BANSAL KRISHNA, J MAY 21, 2024/RS This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 00:41:58