Patiala House Court: In the execution petition arising out of an arbitral award passed against the State of Rajasthan, Vidya Prakash, J., stayed further proceedings regarding attachment of the Bikaner House and directed the judgment debtor (‘JD’)/Nagar Palika, Nokha to deposit the decretal amount in terms of the arbitral award in the form of an interest-bearing Fixed Deposit with an auto-renewal clause in the name of this Court along with the statement of account within two weeks.
Background
The present execution petition was filed seeking enforcement of the arbitral award dated 21-01-2020 passed by the Arbitral Tribunal. The Nagar Palika had challenged the award under Section 34 of Arbitration & Conciliation Act, 1996 but their appeal was dismissed, and the dismissal was not appealed against, thus, the award attained finality. In the present proceedings, the Nagar Palika was directed to file an affidavit of assets under Order 21 Rule 41(2) of the Code of Civil Procedure, 1908 (‘CPC’) but despite several opportunities, it failed to do so. Consequently, the Court directed attachment of the immovable property of the Nagar Palika i.e., Bikaner House to enforce payment of the arbitral award. On 18-11-2024
Analysis
The Court noted that the warrants of attachment issued in terms of the order dated 18-09-2024, were duly executed. Against the said attachment, the State filed objections under Order 21 Rule 58 read with Section 151 of CPC, for which notice was issued to the petitioner.
The Nagar Palika filed a condonation of delay application for placing on record the affidavit of assets under Order 21 Rule 41 (2) of CPC along with the requisite affidavit and vakalatnama. It also expressed willingness to deposit the decretal amount becoming due till date in the form of an interest-bearing Fixed Deposit in the name of the Court, without prejudice to the rights and contentions available to it.
In view of such willingness on part of the Nagar Palika and the facts and circumstances of the case, the Court directed the them to deposit the decretal amount in terms of the arbitral award in the form of an interest-bearing Fixed Deposit with an auto-renewal clause in the name of this Court along with the statement of account within two weeks.
Further, the Court directed that further proceedings under the warrants of attachment executed in respect of Bikaner House shall be stayed till disposal of the objections filed against it.
[Enviro Infra Engineers Pvt. Ltd. v. Nagar Palika, Nokha, Execution (Comm.) No. 118 of 2022, decided on 29-11-2024]
Advocates who appeared in this case :
For the petitioner: Mr. Sahil Garg and Mr. Abhinav Jain
For the respondent: Mr. Shiv Mangal Sharma, AAG, Mr. Saurabh Rajpal, Ms. Nidhi Jaswal, Mr. Shashank Khurana, Mr. Deepak Verma, and Mr. Vishal
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