Calcutta High Court
Damodar Valley Corporation vs Bla Projects Pvt Ltd on 11 December, 2023
Author: Moushumi Bhattacharya
Bench: Moushumi Bhattacharya
OCD-12
ORDER SHEET
IA NO. GA/1/2021
In
AP/473/2021
IN THE HIGH COURT AT CALCUTTA
Ordinary Original Civil Jurisdiction
ORIGINAL SIDE
(Commercial Division)
DAMODAR VALLEY CORPORATION
VS
BLA PROJECTS PVT LTD.
BEFORE:
The Hon'ble JUSTICE MOUSHUMI BHATTACHARYA
Date : 11th December, 2023.
Appearance:
Mr. Ratnanko Banerji, Sr. Adv.
Ms. Vineeta Meharia, Adv.
Mr. Amit Meharia, Adv.
Mr. Kanishk Kejriwal, Adv.
Ms. Paramita Banerjee, Adv.
Ms. Amrita Das, Adv.
...for the petitioner
Mr. Jaydip Kar, Sr. Adv.
Mr. Debdeep Sinha, Adv.
...for the respondent
The Court: The award-debtor seeks stay of an Award dated 14th August, 2021. The awarded amount, taken with interest, comes to Rs.21,10,34,094/- as on 11th December, 2023. This is the calculation given by the award-holder.
Learned counsel appearing for the award-debtor/applicant however says that the awarded amount should be Rs.16,39,22,892.55 up to 5th January, 2022, being the date when the award-holder filed an application for return of the application for setting aside of the Award to the appropriate Court. 2
The award-holder's application under Order VII Rule 10 of The Code of Civil Procedure, 1908 was decided in favour of the award-debtor that of a judgment dated 18th October, 2023. The Court held that the Calcutta High Court would be the competent Court to entertain the application for setting aside of the Award.
The only question is whether the Court will accept the calculation given by the award-debtor or that of the award-holder. There is a difference of about Rs.5 crores in the two calculations. The difference primarily comes from the interest component.
This Court is of the view that award of interest, post-award, is now statutorily sanctioned by the Act under Section 31(7)(b) which mandates interest post-award till realisation. The Act also gives a certain amount of discretion to the Court in determining the quantum of interest to be awarded to the award-holder. The award-holder cannot be penalised for making an application questioning the jurisdiction of the Court in the Section 34 application.
GA/1/2021 is accordingly allowed and disposed of by directing the award-debtor to secure the amount of Rs.21,10,34,094/-, 50% by way of furnishing a bank guarantee and the remaining 50% by way of a cash deposit with the Registrar, Original Side of this Court within 12th January, 2024.
The impugned Award shall be stayed on and from 13th January, 2024 in the event the award-debtor complies with these directions. The award-holder 3 will be at liberty to execute the Award in the event the award-debtor fails to comply.
The Registrar, Original Side will invest the amount in an interest bearing account with a reputed bank.
(MOUSHUMI BHATTACHARYA, J.) bp.