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M/s. Indian Oil Corporation Ltd., AP State Office, Hyderabad v/s M/s. N.R.P. Projects Private Ltd., Rep. by its Partner, Hitesh J. Patel


Company & Directors' Information:- INDIAN OIL CORPORATION LIMITED [Active] CIN = L23201MH1959GOI011388

Company & Directors' Information:- Y K M PROJECTS PRIVATE LIMITED [Active] CIN = U40109TG2008PTC057263

Company & Directors' Information:- S G PROJECTS LIMITED [Active] CIN = U65999WB1990PLC049684

Company & Directors' Information:- D M P PROJECTS PVT LTD [Active] CIN = U27109WB2006PTC107513

Company & Directors' Information:- NRP PROJECTS PRIVATE LIMITED [Active] CIN = U45200TN2010PTC076601

Company & Directors' Information:- S. V. S. PROJECTS PRIVATE LIMITED [Active] CIN = U70100AP1998PTC029024

Company & Directors' Information:- S V S PROJECTS INDIA PRIVATE LIMITED [Active] CIN = U45200AP2015PTC096787

Company & Directors' Information:- A T E PROJECTS PRIVATE LIMITED [Active] CIN = U74999DL1999PTC102246

Company & Directors' Information:- U W T PROJECTS LIMITED [Active] CIN = U45200AP2004PLC043198

Company & Directors' Information:- T & I PROJECTS LTD [Active] CIN = L29130WB1984PLC038232

Company & Directors' Information:- E AND C PROJECTS PRIVATE LIMITED [Active] CIN = U29150DL2002PTC115297

Company & Directors' Information:- J T L PROJECTS PRIVATE LIMITED [Active] CIN = U70101KL2006PTC019439

Company & Directors' Information:- V AND S PROJECTS PRIVATE LIMITED [Active] CIN = U70109DL1996PTC079487

Company & Directors' Information:- L S R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U07010KA2005PTC036041

Company & Directors' Information:- V R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45400AP2007PTC054901

Company & Directors' Information:- S H PROJECTS PRIVATE LIMITED [Active] CIN = U74996DL2006PTC149971

Company & Directors' Information:- PATEL PROJECTS LIMITED [Active] CIN = U45200TG1995PLC020852

Company & Directors' Information:- R K PROJECTS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC043660

Company & Directors' Information:- A K PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201TG1996PTC023179

Company & Directors' Information:- J AND H PROJECTS PRIVATE LIMITED [Active] CIN = U45200GJ2013PTC074010

Company & Directors' Information:- H S PROJECTS PRIVATE LIMITED [Active] CIN = U45208DL2006PTC153706

Company & Directors' Information:- N M PROJECTS PRIVATE LIMITED [Active] CIN = U29219DL2009PTC186728

Company & Directors' Information:- K. V. PROJECTS PRIVATE LIMITED [Active] CIN = U70102WB2012PTC188439

Company & Directors' Information:- F C C PROJECTS PRIVATE LIMITED [Active] CIN = U29248UP1982PTC005786

Company & Directors' Information:- S N PROJECTS LIMITED [Active] CIN = U85110KA1996PLC021040

Company & Directors' Information:- B. D. PROJECTS PRIVATE LIMITED [Amalgamated] CIN = U45400WB2010PTC147620

Company & Directors' Information:- G G PROJECTS PRIVATE LIMITED [Active] CIN = U45201DL1998PTC091501

Company & Directors' Information:- V M G PROJECTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U45400WB2011PTC164117

Company & Directors' Information:- M. L. PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2010PTC151513

Company & Directors' Information:- R N D PROJECTS PRIVATE LIMITED [Active] CIN = U70102DL1996PTC080051

Company & Directors' Information:- INDIAN PROJECTS PVT LTD [Strike Off] CIN = U74210DL1978PTC009208

Company & Directors' Information:- G S P PROJECTS PRIVATE LIMITED [Active] CIN = U45201WB1992PTC057116

Company & Directors' Information:- E AND V PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70102TG2004PTC042622

Company & Directors' Information:- S C T PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201DL2008PTC184418

Company & Directors' Information:- P A PROJECTS PRIVATE LIMITED [Active] CIN = U45208WB1997PTC083907

Company & Directors' Information:- AP PROJECTS LIMITED [Active] CIN = U74899HR1992PLC053012

Company & Directors' Information:- N K D PROJECTS PRIVATE LIMITED [Active] CIN = U45400WB2008PTC128819

Company & Directors' Information:- P N PROJECTS PRIVATE LIMITED [Active] CIN = U45202DL2016PTC289494

Company & Directors' Information:- PROJECTS PVT LTD [Strike Off] CIN = U45201WB1951PTC019759

Company & Directors' Information:- C R PROJECTS PRIVATE LIMITED [Active] CIN = U45400PB2009PTC032572

Company & Directors' Information:- N D B K PROJECTS (INDIA) PRIVATE LIMITED [Active] CIN = U27100PB2012PTC036987

Company & Directors' Information:- C K B PROJECTS INDIA LIMITED [Strike Off] CIN = U70102WB2012PLC188740

Company & Directors' Information:- I J PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70102KA2009PTC049320

Company & Directors' Information:- G C N PROJECTS PRIVATE LIMITED [Active] CIN = U45200KA2011PTC061371

Company & Directors' Information:- J R PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70109HR2012PTC045119

Company & Directors' Information:- C N R PROJECTS INDIA PRIVATE LIMITED [Active] CIN = U45201KA2007PTC041355

Company & Directors' Information:- J Y R PROJECTS PRIVATE LIMITED [Active] CIN = U70109TG2021PTC153917

Company & Directors' Information:- A J PROJECTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U45201MH2006PTC164622

Company & Directors' Information:- A TO Z PROJECTS PRIVATE LIMITED [Strike Off] CIN = U70101DL1995PTC069527

Company & Directors' Information:- B. G. PROJECTS PRIVATE LIMITED [Active] CIN = U45400MH2012PTC231270

Company & Directors' Information:- B B R PROJECTS PRIVATE LIMITED [Active] CIN = U45200TG2005PTC045165

Company & Directors' Information:- L V S PROJECTS PRIVATE LIMITED [Under Process of Striking Off] CIN = U45200TG2010PTC068286

Company & Directors' Information:- R N V PROJECTS PRIVATE LIMITED [Active] CIN = U70102UP2011PTC044240

Company & Directors' Information:- 3 G PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45400DL2015PTC276736

Company & Directors' Information:- M K PROJECTS PRIVATE LIMITED [Strike Off] CIN = U45201DL2002PTC117787

Company & Directors' Information:- K. J. S. PROJECTS PRIVATE LIMITED [Active] CIN = U70109DL2006PTC152898

Company & Directors' Information:- C R R PROJECTS PRIVATE LIMITED [Active] CIN = U45400AP2015PTC097217

Company & Directors' Information:- C AND T PROJECTS PRIVATE LIMITED [Strike Off] CIN = U74140GJ2009PTC057480

    Original Petition No. 1040 of 2019 & Application No. 9642 of 2019

    Decided On, 16 December 2019

    At, High Court of Judicature at Madras

    By, THE HONOURABLE DR. JUSTICE G. JAYACHANDRAN

    For the Petitioner: M.S. Krishnan, Senior Counsel. For the Respondent: Menon, Advocate.



Judgment Text


(Prayer: This Petition filed under Section 34(2) (b) (ii) (2A) of the Arbitration and Conciliation Act, 1996, as amended in 2015, praying to set aside the Arbitration Award dated 22.10.2018 and the order dated 04.12.2018 passed by the Learned Arbitrator which had arisen out of the dispute between the Petitioner and the Respondent, besides directing the Respondent to pay the Costs of the Petition and pass such order.)

1. This Application O.P.No.1040 of 2019 is filed under Section 34(2) (a) (4) & (5) and (B) (2) of the Arbitration and Conciliation Act, 1996, by the Indian Oil Corporation to set aside the arbitration award passed on 22.10.2018, holding that the M/s.N.R.Patel & Company, the Claimant/respondent herein is entitled for a sum of Rs.4,15,400,942.60 as on date of award, besides interest of 18% on the award amount, from the date of presentation of the award, till the date of payment.

2. The Applicant/Indian Oil Corporation, besides filing the above petition to set aside the arbitration award, has taken out an Application No.9642 of 2019 to stay the operation of the arbitration award dated 22.10.2018 and the rectification order dated 14.12.2018 and consequential the Execution Petition No.87 of 2019, pending on the file of Master of this Court.

3. The Learned Counsel appearing for the respondent shoutly opposed the application for stay on the ground that, Section 36 Clauses 2 & 3 of the Arbitration Act read together clearly indicates that, pendency of application to setaside the arbitral award is not a bar for enforcing the award and stay of the operation of the arbitral award should be subject to condition as it may deem fit.

4. According to the respondent counsel, the applicant/ petitioner does not deserve the indulgence of this Court of granting stay of the award since the matter which is pending for nearly 18 years was protracted by the applicant under one pretext or another depriving the respondent its legitimate dues.

5. Particularly, it is contended by the learned counsel that, after a prolong legal battle, the award was passed on 22.10.2018 thereafter, the application was filed for rectifying error and same was also considered and order was passed on 04.12.2018. Thereafter, the applicant did not prefer petition to set aside the award in time. The delay in filing the application and further delay in filing representation were liberally condoned. Taking note of the fact that, the applicant has deposited the award amount. The said deposit of award amount was not voluntary but only after the order passed by the Master in the Execution Petition directing the garnishee to deposit the amount. Therefore, there is no bonafide in the contention of the applicant to seek stay of the operation of the arbitral award pending its application to setaside the same.

6. As far as merit of the application, the Learned Counsel for the Respondent submit that, the award does not fall under any of the ground enumerated under Section 34(2) of the Act for the Court to interfere and set aside the award.

7. After considering the rival submissions and the fact of the case, perusing the grounds of appeal preferred against the Arbitration award, this Court finds that there is no merit in this Application and no part of the award attract the provisions of Section 34(2) of the Act. However, having fought the battle for more than 18 years, this Court thought that, an amicable settlement could be arrived between the parties. Hence, requested the concerned counsel to bring their respective parties to the Court to find out a solution. Accordingly, Mr.C.Rama Rao, on behalf of the applicant and Mr.Hitesh J.Patel, on behalf of the respondent were present today (16.12.2019).

8. After hearing the parties, this Court found that from the year 2008-2017 this dispute was laying dormant in the Court corridor without any progress. This has enhanced the liability towards the interest for the applicant, otherwise there is no merit to canvas for the applicant. As a concession for the delay caused by the stake holders including the Court, this Court is of the view that out of Rs.4,84,31,417.63/- deposited by the applicant herein, they shall be entitled to get back a sum of Rs.75,00,000/- (Rupees Seventy Five Lakhs only), which will be more or less towards the interest at nominal rate of 6% payable by the applicant, for a period between 2009-2017. The balance amount of Rs.4,09,31,417.63/- with the accrued interest for the money deposited shall be paid to the respondent. The Director of the respondent company who is present in the Court agreeable to the proposal. In the result, the Application is disposed of with the following terms:-

(i). The applicant herein who has deposited

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the money in the E.P account (E.P.No.87 of 2019), shall be entitled for a sum Rs.75,00,000/-. (Rupees Seventy Five Lakhs only). The balance sum of Rs.4,09,31,417.63/- and the accrued interest will be payable to the respondent. (ii). The Master before whom the Execution Petition is pending, shall pay the amount as stated above to the respective parties, on application for payment out. 9. Accordingly, the Original Petition No.1040 of 2019 is disposed of. Consequently, the Application No.9642 of 2019 is closed.
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