At, High Court of Delhi
By, THE HONOURABLE MR. JUSTICE G.S. SISTANI & THE HONOURABLE MR. JUSTICE SANGITA DHINGRA SEHGAL
For the Appellants: Sacchin Puri, Senior Advocate, Ravikesh Sinha, Ritwik Chawla, Advocates. For the Respondent: Ms. Diya Kapur, Rishab Sharma, Advocates.
G.S. Sistani, J.
1. This is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (Act) read with Section 13 of the Commercial Court Act (hereinafter referred to ‘the Act’) assailing the judgment and order dated 20.1.2017 (impugned order) passed by a Single Judge of this Court by which the objections to the Award filed under Section 34 of the Act have been dismissed.
2. While issuing notice in this matter, the appellants were directed to deposit in the name of the Registrar General of this Court, the sum payable as per Award within six weeks. Pursuant to the directions, we are informed that the appellants have deposited a sum of Rs. 6,17,70,000/- on 3.4.2017. It may be noted that the Arbitrator had awarded the following amounts to be paid to the respondents herein by the appellants as also respondent No. 3. It may also be noted that the respondent No. 3 has not assailed the order passed by the learned Single Judge, neither the objections were filed to the Award. The details of the amount awarded by the Arbitrator is as under:
Name of ClaimantAmount awarded to be paid
M/s Freightstar Pvt. Ltd. Rs. 2,62,70,000/- (by Pristine Logistics & Infra Projects Pvt. Ltd.)
M/s Freightstar Pvt. Ltd. Rs. 3,55,00,000/- (by Kanpur Logistics Park Pvt. Ltd.)
M/s Freightstar Pvt. Ltd. Rs. 92,30,000/- (by Aeren R. Logistics & Infrastructure Pvt. Ltd.)
3. (No objections to the award have been filed nor the respondent No. 3 is represented in this Court)
4. Mr. Puri, learned Senior Counsel for appellant submits, at the outset, that both the appellants have deposited the amounts awarded on 3.4.2017. He further submits, on instructions, that the appellants would not press the present appeal but seek a concession with regard to the interest awarded. It is further pointed out by Mr. Puri that as per the award the amount was to be paid with interest @ 12% from 6.5.2012 till passing of the award and, in case, amount is not paid within 30 days, the awarded amount would carry interest @ 15% per annum from the date of passing of the award till realization.5. Mr. Puri, learned Senior Counsel further submits that respondent No. 2 must make a statement that no amount is due and payable by the appellants to respondent No. 2. He further submits that this statement would be necessary as the initial amount of Rs. 2.5 crore was paid by respondent No. 2 to appellant No. 1 and post the reconstruction, the respondent No. 1 stepped into the shoes of respondent No. 2 and in the above backdrop such a discharge would be necessary.
6. Ms. Kapur, learned Counsel for respondent No. 1 submits that respondent No. 2 would not make any claim against the appellants with respect to Rs. 2.5 crores deposited by them or any other claim in that respect. She further submits that, in case, balance amount is tendered by the appellant within a reasonable period, the respondent No. 1 would accept concession in interest.
7. Mr. Puri, learned Senior Counsel, on instructions, prays that the interest be reduced to 10% from the date of the Award dated 6.11.2015 up-to 3.4.2017 (date of deposit in the High Court) and the balance amount would be tendered within 3 months from today.
8. We have heard the learned Counsels for the parties.
9. Having heard learned Counsel for the parties, in case and as agreed the appellant pays that the balance amount as per the award within six weeks from today with interest @ 12% from 6.11.2015 up-to 3.4.2017, the decree would stand satisfied, failing which it would be open for the respondent No. 1 to seek execution of the decree.
10. As agreed that appellant would only pay Arbitrator’s fee proportionately and all other cost is given up.
11. With above directions, the appeal is
Please Login To View The Full Judgment!
disposed of. 12. Respondent No. 1 would be at liberty to withdraw the amount deposited by the appellants in the Registry on 3.4.2017 without any notice to the appellants as agreed with interest accrued therein after filing vakalatnama/written instructions from respondent No. 2. CM No. 43485/2017 The application is disposed of, in view of order passed in the appeal. Appeal disposed of.