Indian Kanoon - Search engine for Indian Law

Delhi High Court - Orders

Uv Asset Reconstruction Company Ltd vs Axis Bank Ltd on 28 March, 2023

Author: Chandra Dhari Singh

Bench: Chandra Dhari Singh

                  $~57
                  *       IN THE HIGH COURT OF DELHI AT NEW DELHI
                  +       O.M.P. (COMM) 119/2023 & I.A. 6031/2023
                          UV ASSET RECONSTRUCTION COMPANY LTD ..... Petitioner
                                            Through:     Mr. Dhruv Dewan and Mr. Yajur
                                                         Sharma, Advocates

                                            versus

                          AXIS BANK LTD                                      ..... Respondent
                                            Through:     Mr. Arjun Garg, Advocate

                          CORAM:
                          HON'BLE MR. JUSTICE CHANDRA DHARI SINGH
                                            ORDER

% 28.03.2023

1. The instant petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter "the Act") read with Section 10(2) of the Commercial Court, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 has been filed on behalf of the petitioner seeking the following reliefs:

"a. set aside the Impugned Portion of the Award i.e., paras

8.D.iii and 8.D.v at pages 48 and 49 of the Award dated 19.12.2022 passed by the Arbitral Tribunal; b. award costs in favour of the Petitioner and against the Respondent;

c. pass such further and other orders and directions as deemed proper in the facts and circumstances of the present case."

2. It is submitted that the petitioner is a public unlisted company incorporated under the provisions of the Companies Act, 1956, having its Signature Not Verified Digitally Signed By:DAMINI YADAV Signing Date:29.03.2023 17:31:34 registered office at 704, Deepali Buildihng, 92, Nehru Place, New Delhi- 110019. The petitioner is engaged in the business of securitisation and reconstruction of stressed assets and is registered as such under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. (Hereinafter the "SARFAESI Act"). It is submitted that the respondent is a banking company under the provisions of the Banking Regulation Act, 1949, having its registered office at Trishul, 3 rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad, 380006.

3. Learned counsel appearing on behalf of the petitioner submitted that the instant petition has been filed for setting aside a portion of an arbitral award dated 19th December, 2022 (hereinafter "the Award") whereby the petitioner's claim for pre-award interest on the awarded sums has been rejected and it is held that the petitioner is not entitled to any interest prior to the date of the Award.

4. It is submitted that the Arbitral Tribunal has awarded a sum of Rs. 3,89,05,457/- (Rupees Three Crores Eighty Nine Lacs Five Thousand Four Hundred and Fifty Seven Only) to the petitioner on the basis that the said monies belonged to the petitioner and ought to have been remitted by the respondent in favour of the petitioner under an Assignment Agreement dated 26th September, 2014 between the parties. However, despite coming to the aforesaid conclusion, the Award has only granted interest on the said awarded amount to the petitioner from the date of the Award i.e. 19 th December, 2022 and has rejected the petitioner's entitlement to interest prior to the date of the Award.

5. Heard.

6. Issue notice. Learned counsel appearing on behalf of the respondent accepted notice and prayed for four weeks' time to file reply/objection. Let the same be filed within four weeks as prayed. Rejoinder, if any, be filed within two weeks thereafter.

7. List on 12th May, 2023.

CHANDRA DHARI SINGH, J MARCH 28, 2023 gs/as Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:DAMINI YADAV Signing Date:29.03.2023 17:31:34