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[Cites 2, Cited by 1]

Supreme Court - Daily Orders

The Governor Of Tamil Nadu vs M/S. Gmr Chennai Outer Ring Road Pvt. ... on 3 November, 2022

Bench: Chief Justice, Bela M. Trivedi

                                                       1

     ITEM NO.39                             COURT NO.1                     SECTION XII

                                  S U P R E M E C O U R T O F          I N D I A
                                          RECORD OF PROCEEDINGS

     Petition(s) for Special Leave to Appeal (C)                       No(s).17844-17845/2022

     (Arising out of impugned final judgment and order dated 11-08-2022
     in OSA (CAD) No. 75/2022 11-08-2022 in OSA (CAD) No. 76/2022 passed
     by the High Court Of Judicature At Madras)

     THE GOVERNOR OF TAMIL NADU                                            Petitioner(s)

                                                   VERSUS

     M/S. GMR CHENNAI OUTER RING                ROAD       PVT. LTD.       Respondent(s)

     (IA No.151346/2022-EXEMPTION FROM FILING C/C OF THE IMPUGNED
     JUDGMENT and IA No.155087/2022-PERMISSION TO FILE ADDITIONAL
     DOCUMENTS/FACTS/ANNEXURES )

     Date : 03-11-2022 These petitions were called on for hearing today.

     CORAM :
                            HON'BLE THE CHIEF JUSTICE
                            HON'BLE MS. JUSTICE BELA M. TRIVEDI

     For Petitioner(s)                 Mr. Kapil Sibal, Sr. Adv
                                       Mr. Sabarish Subramanian, AOR
                                       Ms. Shivani Jena, Adv.
                                       Mr. Vishnu Unnikrishnan, Adv.
                                       Ms. Manisha Singh, Adv.
                                       Mr. Naman V. Dwivedi, Adv.
                                       Mr. P. Shankar, Adv.

     For Respondent(s)                 Mr. Mukul Rohatgi, Sr. Advocate
                                       Dr. A.M. Singhvi,Sr. Advocate
                                       Mr. Mahesh Agarwal, Advocate
                                       Ms. Aanchal Mullick, Advocate
                                       Mr. M.S. Ananth, Advocate
                                       Mr. Vishnu Mohan, Advocate
                                       Mr. Abhinabh Garg, Advocate
                                       Ms. Biswabara Dash, Advocate
                                       Mr. E. C. Agrawala, AOR

                             UPON hearing the counsel the Court made the following
Signature Not Verified
                                                O R D E R

Digitally signed by Indu Marwah Date: 2022.11.05 12:28:58 IST Reason: The instant petitions arise out of disposal of an application preferred under Section 34 of the Arbitration and Conciliation Act, 1996 (“The Act” for short). The view taken by the learned Single 2 Judge of the High Court has been affirmed in appeal by the Division Bench of the High Court.

We have been given the following details by way of a note; which reads as under:

NOTE ON AMOUNTS AND INTEREST PAYABLE
1. Total Principal as per Award Rs.341 crores dated 30.01.2020
2. Total Principal Amount as on Rs.341 crores

02.11.2022 Post Award Interest on principal Rs.169.5 crores amount @ 18% as on 02.11.2022 Total Rs. 510.5 crores

3. Total Principal amount as per Rs.341 crores Ld. Single Judge Pendente Lite interest (@ 9% from 31.03.2016 till Rs.110.6 crores 30.01.2020) Post Award Interest on principal Amount & pendente lite interest (@ 18% as on 02.11.2022) Rs.224.5 crores Total Rs.676.1 crores

4. Difference in Amount between Rs.165.6 crores.

Single Judge and Arbitrator As is clear from the note, the awarded sum was Rs. 341 crores. It must be stated that the Arbitral Tribunal had not granted interest pendente lite but granted interest post award 18% per annum. The discussion on the point with regard to interest pendente lite is available at page 648 of the paper book under issue No.4.

In the proceedings arising out of challenge under Section 34 of the Act, the Single Judge however, was pleased to grant interest pendente lite in the sum of Rs.110.6 crores which after 3 certain additions by way of interest now stands aggregated to Rs.165.6 crores.

Mr. Kapil Sibal, learned Senior Advocate appearing for the petitioner has raised only one ground regarding award of pendente lite interest by the Single Judge. In his submission, the Single Judge exceeded the jurisdiction and could not have granted interest pendente lite.

Issue notice confined to the question of interest pendente lite.

It is clarified that the sums representing components forming part of the award i.e. Rs.510.5 crores are not the subject matter of the instant petition and the issues with regard to those components shall be taken to have attained finality. The scope of the instant matter, is confined only to the interest pendente lite.

Mr. Mukul Rohatagi, learned Senior Advocate instructed by Mr. Mahesh Agrawala who has appeared on caveat accepts notice. Response to the petition be filed within three weeks. Rejoinder,if any, be filed within a week thereafter.

List for disposal before the appropriate Court on 15.12.2022. Mr. Mukul Rohatagi, learned Senior Advocate on instructions submits that his client shall not, in pending execution, seek to recover the amount representing interest pendente lite i.e. Rs. 165.6 crores.

(INDU MARWAH)                                                   (VIRENDER SINGH)
COURT MASTER                                                     BRANCH OFFICER