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Arjun Mall Retail Holdings Pvt Ltd & Ors vs Gunocen Inc on 10 February, 2021

Author: Rajiv Sahai Endlaw

Bench: Rajiv Sahai Endlaw, Sanjeev Narula

$~10
*    IN THE HIGH COURT OF DELHI AT NEW DELHI
+     FAO (COMM) 31/2021
      ARJUN MALL RETAIL HOLDINGS PVT
      LTD & ORS                                ...... Appellants
                   Through: Mr. Kirti Uppal, Sr. Adv. with Mr.
                            Vipin Gogia and Mr. Arun K. Batta,
                            Advs.
                         versus

      GUNOCEN INC.                                       ..... Respondent
                         Through:    None
      CORAM:
      HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
      HON'BLE MR. JUSTICE SANJEEV NARULA
              ORDER

% 10.02.2021 CM APPL. No. 5052/2021

1. Exemption allowed, subject to just exceptions.

2. The application stands disposed of.

FAO (COMM) 31/2021

3. The present appeal under Section 37 of the Arbitration and Conciliation Act, 1996 ('the Act') read with Section 13 of the Commercial Courts Act, 2015 impugns the order dated 15th July, 2020 passed by the learned Commercial Court dismissing the objections filed by the Appellant under Section 34 of the Act.

4. Mr. Kirti Uppal, learned Senior Counsel appearing on behalf of the Appellants submits that the arbitral award has been passed ex-parte. He further submits that the MOU dated 24th January, 2015, containing the arbitration agreement is forged, fabricated and a sham document and its existence is denied by the Appellants. He submits that the Arbitral Tribunal could not have entered into reference in terms thereof and the entire case of the Respondent based thereon should have been rejected.

5. Issue notice to respondent through all modes, returnable on the date fixed.

CM APPL. No. 5051/2021 (application for stay)

6. The impugned award directs the Appellants to pay a sum of Rs.75 lakhs along with interest @ 24 per cent per annum from 15 th July, 2018 till the date of filing of the statement of claim i.e., 20th December, 2018. It further directs the Appellants to pay an amount of Rs.1.50 lacs per month, w.e.f. 10th March, 2015 along with interest @ 24 per cent annum from the date it became due and payable till the cancellation of MOU i.e., 15th July, 2018. Cost of Rs. 2 lakhs has also been awarded. Besides, pendente-lite and future interest is awarded @ 12 per cent annum.

7. With the dismissal of objections filed by the Appellants under Section 34 of the Act , the impugned award is executable as a money decree. Therefore, the principles of Order XLI Rule 5 of the Civil Procedure Code, 1908 relating to a money decree will apply. Accordingly, the Appellants are FAO (COMM) 31/2021 Page 2 of 3 directed to deposit with the Registrar General of this Court, 50 per cent of the principle awarded amount i.e., Rs.75 lakhs within a period of four weeks from today. The balance 50 per cent be deposited within a period of four weeks thereafter. For the remaining amounts due under the award, inclusive of costs and interest, the Appellant No.2 i.e. Mr. Rakesh Kumar Bhanot shall furnish an unconditional undertaking for self and on behalf of Appellant No.1, to the effect that subject to the outcome of the appeal, he shall be personally liable to pay the balance awarded amount alongwith with costs and interest accrued thereon, and shall further forthwith comply with the directions issued by this Court in this regard. It is made clear that any breach of the undertaking shall entail all consequences, in accordance with law.

8. Subject to the deposits and furnishing of the undertaking, as directed above, the execution of the impugned award shall remain stayed.

9. List on 20th May, 2021.

RAJIV SAHAI ENDLAW, J SANJEEV NARULA, J FEBRUARY 10, 2021/ms FAO (COMM) 31/2021 Page 3 of 3