Indian Kanoon - Search engine for Indian Law

Supreme Court - Daily Orders

Origo Commodities India Pvt. Ltd vs Indusind Bank Limited on 14 October, 2022

Bench: Surya Kant, M.M. Sundresh

                                                              1


                                          IN THE SUPREME COURT OF INDIA
                                           CIVIL APPELLATE JURISDICTION

                                      CIVIL APPEAL NO.7315/2022
                      (@Petition for Special Leave to Appeal (C)                    No.17019/2022)


     ORIGO COMMODITIES INDIA PVT. LTD                                                 Appellant(s)

                                                             VERSUS

     INDUSIND BANK LIMITED                                                            Respondent(s)


                                                        O R D E R

1. We have heard Mr. Amit Sibal, learned Senior counsel appearing for the appellant as well as learned counsel appearing for the sole respondent – Bank and gone through the material placed on record.

2. Issue notice.

3. Learned Advocate­on­Record, who is on caveat, accepts and waives formal notice on behalf of the sole respondent.

4. Leave granted.

5. The High Court of Judicature at Bombay vide impugned Order dated 12­7­2022 dismissed an appeal filed by the appellant under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the interim direction dated 10.05.2022 of the sole arbitrator.

6. The dispute arises out of a Collateral Services Management Signature Not Verified Agreement entered into between the appellant and the respondent in Digitally signed by VISHAL ANAND Date: 2022.10.19 12:59:30 IST Reason: the year 2012, whereunder the appellant was entrusted with taking care of a warehouse. It appears that during the lockdown caused by  2 the pandemic, almost 20000 packets of cashew nuts were either stolen or replaced and as a loss on collateral security, the respondent – Bank raised claim of over Rs.11.00 Crores through the arbitration proceedings.

7. The Order dated 10­5­2022 passed by the sole Arbitrator was in exercise of his powers under Section 17 of the said Act, directing the appellant to furnish security to the tune of Rs.11.00 Crores to secure the amount claimed.

8. Having given our thoughtful consideration to the rival submissions made by the parties, it appears to us that the ends of justice would be adequately met, if the appellant is directed to deposit a sum of Rs.5.50 Crores with the respondent – Bank within a period of six weeks from today. The said payment shall be kept by the respondent – Bank in a separate Escrow Account and shall not be utilized in any manner whatsoever. The deposit shall carry the maximum rate of interest as admissible in a nationalized bank. The utilization of the said amount along with interest accrued thereupon will depend upon the final outcome of the arbitration proceedings.

9. We make it clear that we have not expressed any views on the merits of the case.

10. The appeal is disposed of on the above terms. The impugned Order of the High Court dated 12­7­2022 as also of the sold Arbitrator are modified to the extent indicated above.  3

11. It goes without saying that the learned Sole Arbitrator shall decide the controversy uninfluenced by the observations made by him in his interim Order and by the High Court in the impugned Order.

...............J (SURYA KANT) ................J (M.M. SUNDRESH) NEW DELHI;

14TH OCTOBER, 2022.

ITEM NO.11                   COURT NO.12                SECTION IX

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

      Petition for Special Leave to Appeal (C)      No.17019/2022

(Arising out of impugned final judgment and order dated 12­07­2022 in CAC No. 276/2022 passed by the High Court of Judicature at Bombay) ORIGO COMMODITIES INDIA PVT. LTD Petitioner(s) VERSUS INDUSIND BANK LIMITED Respondent(s) (FOR ADMISSION and I.R. and IA No.143749/2022­EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT) Date : 14­10­2022 This petition was called on for hearing today. CORAM :

HON'BLE MR. JUSTICE SURYA KANT HON'BLE MR. JUSTICE M.M. SUNDRESH For Petitioner(s) Mr. Amit Sibal, Sr. Adv. Mr. Anupam Kishore Sinha, AOR Mr. Apoorva Jha, Adv.

Mr. Abhisar Bhanu, Adv. Mr. Narasimha Murthy, Adv. Mr. Darpan Sachdeva, Adv. Mr. Vinamra K., Adv.

Mr. Suhail Sehgal, Adv. For Respondent(s) Mr. Jaideep Mitra, Adv. Mr. Rahul Karnik, Adv. Ms. Jinal Rathi, Adv.

Mr. Sachin Mittal, AOR UPON hearing the counsel the Court made the following O R D E R Application seeking exemption from filing certified copy of the impugned Order is allowed. Leave granted.

The appeal is disposed of, in terms of the signed Order.

  (VISHAL ANAND)                                  (PREETHI T.C.)
ASTT. REGISTRAR­cum­PS                           COURT MASTER (NSH)

(Signed Order is placed on the file)