Delhi High Court - Orders
Mangalore Refinery And Petrochemicals ... vs Driplex Water Engineering Private ... on 26 May, 2022
Author: Prateek Jalan
Bench: Prateek Jalan
$~34
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 235/2022
MANGALORE REFINERY AND
PETROCHEMICALS LIMITED ..... Petitioner
Through: Mr. Rajshekhar Rao, Sr. Advocate
with Mr. Saswat Pattnaik & Mr.
Areeb Amanullah, Advocates.
versus
DRIPLEX WATER ENGINEERING
PRIVATE LIMITED ..... Respondent
Through: Mr. Vikram Nandrajog, Advocate.
[M:- 9810097083]
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 26.05.2022
I.A. 8459/2022(exemption)
Exemption allowed, subject to all just exceptions. The application stands disposed of.
O.M.P. (COMM) 235/2022 & I.A. 8460/2022(stay)
1. Issue notice. Mr. Vikram Nandrajog, learned counsel, accepts notice on behalf of the respondent.
2. The petitioner assails an award dated 27.11.2021 and an additional award dated 01.02.2022 by a sole Arbitrator in respect of disputes arising between the parties under a contract for setting up of a DM Water and CPU Plant Package in connection with a crude processing refinery facility.
3. The respondent had asserted several claims in its statement of claims amounting to approximately ₹13 crores and interest thereupon, Signature Not Verified calculated in accordance with Sections 15 and 16 of the Micro, Small and Digitally signed By:SHITU NAGPAL Signing Date:27.05.2022 17:44:28 O.M.P. (COMM) 235/2022 Page 1 of 3 Medium Enterprises Development Act, 2006 ["MSME Act"]. The interest is quantified as claim No. 5 in the statement of claims at ₹8,50,59,000/-.
4. The petitioner assailed the invocation of arbitration in terms of MSME Act by way of a writ petition, being W.P.(C) 6564/2016 [Mangalore Refinery and Petrochemicals Ltd. vs. Micro and Small Enterprises Facilitation Council and Another], in this Court. The writ petition was rejected by a judgment dated 24.01.2019, which has been assailed before the Division Bench in LPA 216/2019 [Mangalore Refinery and Petrochemicals Ltd. vs. Micro and Small Enterprises Facilitation Council and Another]. The appeal remains pending.
5. However, in consonance with the orders of the Division Bench, the petitioner participated in the arbitration proceedings without prejudice to its rights and contentions in the appeal.
6. By the impugned award dated 27.11.2021, the learned Arbitrator has partially allowed the claims of the respondent. It is undisputed that the principal amount awarded is ₹3,43,78,833/-. As far as interest is concerned, the learned Arbitrator has held that the claimant is entitled to interest in terms of Sections 15 and 16 of the MSME Act, subject to the decision in the appeal pending in this Court. It has been clarified that in case the appeal of the petitioner is allowed, the respondent would not be entitled to past interest, and interest would be awarded at 7.5% per annum from the date of award.
7. As the amount of interest is not quantified, for the present, learned counsel for the parties are directed to calculate the interest in terms of claim No. 5 in which the respondent has enumerated the interest claimed under the respective substantive claims [at page 422 of the petitioner's documents]. The claims will be adjusted pro rata for the amount awarded Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:27.05.2022 17:44:28 O.M.P. (COMM) 235/2022 Page 2 of 3 by the learned Arbitrator as against the amount claimed by the respondent in each of the claims.
8. Learned counsel for the parties will attempt to reconcile their calculations of interest awarded on this basis within one week from today and file a joint statement. In the event they are unable to reconcile their calculations, they may file separate statements of account within one week thereafter.
9. The petitioner is directed to deposit with the Registrar General of this Court 75% of the principal amount awarded and 75% of the interest awarded, either in terms of the joint statement of the parties or in terms of the calculation of the petitioner at the first instance. The deposit will be made within four weeks from today, subject to which the execution of the impugned award will remain stayed until the next date of hearing.
10. The deposit of 75% of the awarded amount has been directed in terms of Section 19 of the MSME Act as sought by Mr. Nandrajog.
11. The parties may file their written submissions within four weeks from today.
12. List on 07.09.2022 PRATEEK JALAN, J MAY 26, 2022 'pv'/ Click here to check corrigendum, if any Signature Not Verified Digitally signed By:SHITU NAGPAL Signing Date:27.05.2022 17:44:28 O.M.P. (COMM) 235/2022 Page 3 of 3