Calcutta High Court
National Highways Authority Of India vs Kaushalya Infrastructure Development ... on 9 January, 2017
Author: I.P.Mukerji
Bench: I. P. Mukerji
AP 374 of 2016
IN THE HIGH COURT AT CALCUTTA
ORDINARY ORIGINAL CIVIL JURISDICTION
NATIONAL HIGHWAYS AUTHORITY OF INDIA
VERSUS
KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LTD.
BEFORE:
The Hon'ble JUSTICE I. P. MUKERJI
Date : 9th January, 2017.
Mr. Joy Saha,Sr. Advocate appears.
Mr. Aryak Dutt,Advocate appears.
Mr. Dipankar Das,Advocate appears.
Mr. Joydip Kar,Sr. Advocate appears.
Ms. Manju Bhuteria,Advocate appears.
Ms. Shreya Chaudhary,Advocate appears.
The Court : - The respondent is the beneficiary of an arbitral award for Rs.
9.92 crores. Out of that, the principal sum is Rs. 6,00,29,651/-.
The petitioner has made this application under Section 34 of the Arbitration and Conciliation Act, 1996. It has already deposited Rs. 5 crores with the Registrar, Original Side, out of which an amount of Rs. 48 lakhs has already been released to the respondent.
Considering the provisions of the amended Section 36 of the Arbitration and Conciliation Act, 1996 asking the Courts to follow the provisions of the Code of Civil Procedure relating to stay of a money decree while considering stay of an arbitral award, I am of the opinion that since a substantial part of the entire dues has already been secured by the petitioner, the purpose of security will be met, if the petitioner is directed to keep a further sum of Rs. 3.50 crores in a separate bank account earning interest, in its name to the credit of this arbitration. If they do so, they will have secured the entire principal sum of about Rs. 6 crores and Rs. 2.50 crores out of the interest claim of about Rs. 4 crores. I think this will subserve the interests of justice. I order accordingly. After all, the petitioner is a statutory authority under the control of the Central Government. 2
This security has to be furnished by the petitioner by 31st January, 2017. During this time upto 31st January, 2017 the respondent will not take any steps for execution of the award. If the above conditions are fulfilled, the respondent will not take any further steps in execution of the award till the disposal of this application to set aside the award. In default, the respondent will have liberty to apply to proceed in execution.
Let affidavits be exchanged according to the following direction :
Let affidavit-in-opposition be filed by 10th February, 2017. List this matter on February 27, 2017. Affidavit-in-reply be filed in the meantime.
(I.P.MUKERJI,J.) S.Chandra