Calcutta High Court
West Bengal Industrial Development ... vs Bla Projects Pvt Ltd (Formerly Banwari ... on 27 January, 2022
Author: Ravi Krishan Kapur
Bench: Ravi Krishan Kapur
ODC-15
AP/549/2021
IA NO: GA/1/2022
IN THE HIGH COURT AT CALCUTTA
ORDINARY ORIGINAL CIVIL JURISDICTION
ORIGINAL SIDE
WEST BENGAL INDUSTRIAL DEVELOPMENT CORPORATION LIMITED
VS
BLA PROJECTS PVT LTD (FORMERLY BANWARI LAL AGARWALLA PVT LTD)
BEFORE:
The Hon'ble JUSTICE RAVI KRISHAN KAPUR
Date : 27th January, 2022.
Appearance:
Mr. S. N. Mukherjee, Adv. General
Mr. Joydip Kar, Adv.
The Court : This is an application under Section 36 of the Arbitration and
Conciliation Act, 1996 ('the Act'). The petitioner prays for stay of the operation of
the impugned arbitral award dated 17 August, 2021.
The award has been passed in respect of disputes and differences which had
arisen in respect of infrastructure development works at (Internal Road and
Storm Drainage System) Panagarh Industrial Park at Panagarh. The award inter
alia directs the petitioner to pay to the respondent a sum of approximately of
Rs.3,95,78,899/- alongwith simple interest @ 9% per annum.
The petitioner has also filed an application being AP 549 of 2021 before this Court under Section 34 of the Act. The petitioner submits that, insofar as claim (a) for Rs.38,31,069/- and claim (b) for Rs.36,04,201/- are concerned the petitioner is ready and willing to furnish cash security. However, in respect of the remainder of the award the petitioner fairly submits, for security as the Court may deem fit and proper.
Mr. Kar, Senior Advocate appearing on behalf of the respondent submits that the aggregate awarded amount of approximately Rs.4.15 crores should be secured by way of furnishing cash security.
I have considered the submissions of the parties.
I find that the award is an award for a sum of approximately Rs.4.15 crores (inclusive of interest). In view of the provisions of the amended Section 36 of the Act, a Court may direct the award debtor seeking stay of operation of the award to deposit the awarded amount or a portion thereof as security for obtaining stay of operation of the award.
I am of the view that since the award is a money award for approximately Rs.4.15 crores, I direct that there shall be a stay of the award subject to the condition that the petitioner deposits 50% of the awarded amount i.e. Rs.4.15 crores by way of cash security or its equivalent to the satisfaction of the Registrar Original Side, High Court at Calcutta. Upon such deposit being made, the Registrar Original Side is directed to make a fixed deposit of the said amount with any nationalised bank and keep the same renewed till the disposal of the application under section 34 of the Act or until further orders of Court. The remaining 50% of the awarded amount of Rs.4.15 crores be secured by way of bank guarantee(s) of a nationalised bank by the petitioner to the satisfaction of the Registrar Original Side, High Court. The petitioner is granted a period of 4 (four) weeks to carry out the aforesaid directions. In the event security as directed above is furnished, there shall be an unconditional stay of execution of the award till the disposal of AP 549 of 2021. There shall also be a stay of the award for the interim period of 4 (four) weeks granted to the petitioner to furnish the security in terms of the aforesaid directions.
With the aforesaid directions, GA 1 of 2022 stands disposed of.
(RAVI KRISHAN KAPUR, J.) SB