Transmission Corporation Of Andhra ... vs M/S.Equipment Conductors And Cables ... on 7 December, 2016
During hearing learned Advocate General for the State of
Andhra Pradesh mainly contended that the amended provisions of
Act 3 of 2016 of Arbitration and Conciliation Act has no
retrospective effect and it applies only to the Arbitration
proceedings initiated after the commencement of the amended
provisions of Arbitration Act i.e. on or after 23.10.2015. As the
amended provisions of Arbitration and Conciliation Act came into
force from 23.10.2015, there is deemed stay of operation of award
during pendency of the appeal in view of Section 36 of Arbitration
and Conciliation Act, but the II Additional Chief Judge, City Civil
Court, Hyderabad without considering the effect of amended
provisions, entertained the E.P.No.33 of 2016 and issued garnishee
order for Rs.8,22,52,239/- by directing the Branch Manager, State
Bank of Hyderabad, Khairatabad, Hyderabad (in respect of account
No.52077965102 and 52077969912) and Branch Manager, ICICI
Bank, Khairatabad (in respect of account No.000805008881) to
pay the attached amount from the said accounts to the credit of
E.P. He also drawn the attention of this Court to several judgments
in support of his contentions, more particularly the judgment of
the Apex Court rendered in Thyssen Stahlunion GMBH v. Steel
Authority of India Ltd , Thirumalai Chemicals Limited v.
Union of India , unreported judgments of High Court of Calcutta
in Electrosteel Castings Limited v. Reacon Engineers (India)
Private Limited (AP No.1710 of 2015), Sri Nitya Ranjan Jena
v. Tata Capital Financial Services Ltd. (G.A.No.145 of 2016
with A.P.No.15 of 2016) and unreported judgment of High Court
of Delhi in Ministry of Defence, Government of India v.
CENREX SP. Z.O.O. and Ors (O.M.P.No.408 of 2007) to contend
that the amended provisions would not take away the substantial
right that accrued to the petitioner by the amendment to Section
36 of Arbitration and Conciliation Act with effect from 23.10.2015
and such interpretation would render the pre-amended provisions
redundant and thereby there is deemed stay of execution of award,
if any, passed by the Council in view of the pendency of application
filed under Section 34 of the Arbitration and Conciliation Act
before the District Judge, Chandigarh and such substantive right
that accrued to the petitioner would not be taken away by
amended Act 3 of 2016 since the proceedings were initiated much
prior to the commencement of amendment and the application
filed under Section 34 is continuation of earlier proceedings,
thereby as on today there is, absolutely, no executable award,
consequently, the impugned garnishee order passed by the II
Additional Chief Judge, City Civil Court, Hyderabad is liable to be
set aside.