Delhi High Court - Orders
Bhayana Builders Pvt. Ltd vs Chintels India Ltd on 31 July, 2024
Author: Jasmeet Singh
Bench: Jasmeet Singh
$~19
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ OMP (ENF.) (COMM.) 174/2019, EX.APPL.(OS) 3200/2022,
EX.APPL.(OS) 951/2023
BHAYANA BUILDERS PVT. LTD. .....Decree Holder
Through: Mr Saurabh Kirpal, Sr. Adv. with Mr
Sameer Rohatgi, Ms Manmeet Kaur,
Mr Gurtej Pal Singh, Mr Chandan
Malav and Ms Gaurangi Khanna,
Advs.
versus
CHINTELS INDIA LTD. .....Judgement Debtor
Through: Mr Kotla Harshavardhan, Adv.
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
ORDER
% 31.07.2024
1. This is a petition filed under section 36 of the Arbitration and
Conciliation Act seeking execution of the Arbitral Award dated 03.05.2019 which was duly received on 07.05.2019 wherein the claims of the decree- holder have been allowed to the tune of Rs. 7,70,75,378/- along with interest @9% per annum.
2. The impugned Award was partially set aside vide judgement dated 08.07.2022 passed in O.M.P. (COMM.) 444/2019 filed by the judgement debtor only to the extent of Claim No. 2 and 4.
3. At this stage, the case between the parties is that substantial payments have been made with respect to the impugned Award however, only the interest on Claim No. 5 is outstanding.
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4. It is pertinent to mention that Claim No. 5 has not been altered or modified vide judgement dated 08.07.2022.
5. The Claim No. 5 was allowed in favour of the decree-holder and the operative portion reads as under:
"We, therefore, award a sum of Rs 2,00,14,900.00 in favour of the Claimants along with 9% interest with effect from 18.06.2017 (Date on which 41st Running Bill should have been paid) till its the realisation."
6. Mr Kirpal learned senior counsel for the decree-holder states that in view of the interest awarded in Claim No. 5, the decree-holder was entitled to interest @ 9% from 18.06.2017 to 31.07.2019 which amounts to Rs. 38.19 lakhs.
7. Now coming to the aspect of interest being awarded by the Arbitral Tribunal in Claim No. 16, the interest has been awarded on different claims and the same reads as under:
"Claim on account of Pre-suit AND Pendente Lite interest @ 18% per annum from 30.09.2016.
The Arbitral, tribunal has decided to allow interest @ 9% per annum with effect from 01.07.2017 in respect of award on claim No.1 relating to payment of final bill that was due on 01.07.2017 as per provision of contract. The Arbitral tribunal decided to allow interest @ 9% per annum with effect from 02.02.2017 i.e. the date of encashment of Bank Guarantee till its realization. The Arbitral tribunal's rest of the award would bear no interest till Ninety Days of date of publishing of the This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 23:24:04 award. The award would attract interest @ 9% per annum after Ninety Days of publishing of this award."
8. Mr Harshavardhan, learned counsel for the judgment-debtor states that the Award of interest is entirely within the domain of the Arbitral Tribunal and the learned Arbitrator after due application of mind has awarded interest on Claim No. 1 at the rate of 9% from 18.06.2017, interest of 9% upon encashment of bank guarantee from 02.02.2017 under Claim No. 13 and 9% interest on rest of the claims after 90 days from the date of publishing of the Award under Claim No. 16 that is 31.07.2019 as the impugned Award was published on 03.05.2019. Hence, the interest granted under Claim No. 5 is already included in Claim No. 16.
9. I am unable to agree to the said contentions raised by the Judgement debtor.
10. If the said contention raised by the judgment-debtor is be accepted then the Award granted by the Arbitral Tribunal under Claim No. 5 becomes redundant which reads as under:
"We, therefore, award a sum of Rs 2,00,14,900.00 in favour of the Claimants along with 9% interest with effect from 18.06.2017 (Date on which 41st Running Bill should have been paid) till its the realisation."
11. In my view, the Arbitral Tribunal after due application of mind had granted interest at the rate of 9% from 18.06.2017 on Claim No.5 and a bare perusal of the Award granted under Claim No. 5 clearly quantifies the interest being granted.
12. I am of the view that non-mentioning of grant of interest on Claim No. 5 under Claim No. 16 is of no effect. The interest on claim No. 5 has not This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 23:24:05 been modified or set aside while deciding Claim No. 16. The Award has to be read as a whole and in a meaningful way. If interest has been specifically granted under a particular head (namely in claim No. 5 herein) , merely non mentioning of the same under general claim of interest, will not nullify the same
13. Therefore, there is no ambiguity in the Award and the decree-holder is entitled to interest on Claim No.5 from 18.06.2017 to 31.07.2019 which amounts to about Rs. 38.19 lakhs.
14. It has been brought to my attention that there is another component of interest on payment of Rs. 1.77 crores from 28.07.2022 to 01.09.2022. Mr Harshavardhan, learned counsel for the judgment-debtor states that if so, the same will be paid by the judgment-debtor.
15. However, since an SLP is pending against the Arbitral Award which is filed by the judgement debtor, it is agreed by the decree-holder that the decree-holder will file an affidavit of one of the promoter Directors that in case any amount is found due to the judgment-debtor pursuant to the judgment of the Hon‟ble Supreme Court, the same shall be restituted by the decree-holder along with interest.
16. The present petition is disposed of accordingly.
JASMEET SINGH, J JULY 31, 2024 sr Click here to check corrigendum, if any This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/08/2024 at 23:24:05