Bombay High Court
Rajeshri Realtors vs Sweet Angel Home Builders And 5 Ors on 17 September, 2021
Bench: S.J. Kathawalla, Milind N. Jadhav
Digitally signed by
SWAROOP SWAROOP
SHARAD SHARAD PHADKE
Date: 2021.09.18
PHADKE 14:01:45 +0530
12 APPL 19503 OF 2021.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
APPEAL (L) NO.19503 OF 2021
IN
INTERIM APPLICATION (L) NO.2809 OF 2021
IN
EXECUTION APPLICATION NO.56 OF 2021
Rajeshri Realtors ... Appellant
Versus
Sweet Angel Home Builders and Ors. ... Respondents
Mr. Vishal Thakar with Ms. Anjali Trivedi i/by V. Thakers' Advocates, for Appellant.
Mr. Nigel Quraishy i/by Mr. Dushyant Krishnan, for Respondents.
CORAM: S.J. KATHAWALLA &
MILIND N. JADHAV, JJ.
DATE: 17th SEPTEMBER, 2021
P.C.:
1. The Appellant ( Judgment Creditor) is a partnership. Under an
Arbitration Award dated 31st January, 2018, the Appellant was awarded an amount of
Rs.26,36,54,218/- along with interest @ 6% p.a. from 1st January, 2015 till 31st January,
2018 with further interest @ 12% p.a. from 1 st February, 2018 till payment. It is
submitted that as on 31st August, 2021, the aggregate amount payable to the Appellant
by the Respondents (judgment debtors) is Rs.45,30,14,826/-.
2. By an order dated 22nd July, 2019, the learned Single Judge of this Court
whilst admitting the Appeal under Section 34 of the Arbitration and Conciliation Act,
1996 granted a conditional stay with regard to the execution of the Award i.e. only
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12 APPL 19503 OF 2021.doc
upon the Respondents depositing 50% of the sum awarded along with interest with the
Prothonotary and Senior Master of this Court. The Respondents admittedly failed to
deposit 50% amount and hence, there is no stay qua the execution of the Award.
3. In another proceedings i.e. Writ Petition No.1308 of 2019, an order
dated 27th September, 2019 was passed by this Court recording the undertaking of the
Respondents/judgment debtors that the amount deposited by the MCGM in Curt
towards compensation payable to the Respondents/Judgment Debtors may be
appropriated to the decretal sum payable by the Judgment Debtors to the Appellant.
4. By an order dated 19th January, 2021 passed in Writ Petition No.1308 of
2019, this Court recorded that MCGM has deposited Rs.6,89,24,016/- payable to the
Judgment Debtors with the Prothonotary and Senior Master of this Court. This
Court by its order allowed the Appellant to withdraw 50% of the said amount i.e.
Rs.3,44,62,008 and granted liberty to the Appellant to apply to the executing Court
seeking recovery of the balance decretal amount.
5. The Appellant thereafter, filed Interim Application (L) No.2809 of 2021
before the learned Single Judge seeking withdrawal of the balance 50% amount
deposited by MCGM with the Prothonotary and Senior Master of this Court.
6. The learned Single Judge by the impugned order dated 18 th August, 2021
rejected the Interim Application on the ground that the Appellant has shown its
unwillingness to furnish a bank guarantee in the like amount.
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7. In our view, in the absence of stay qua the execution proceedings, the
question of the Appellant being asked to provide bank guarantee to enable them to
withdraw 50% of the balance amount in execution of part payment of the decree
admittedly passed in favour of the Judgment Creditor, does not arise. The impugned
order dated 18th August, 2021 is therefore, set aside. The Appellant is allowed to
withdraw the balance 50% amount without furnishing a bank guarantee. The
Prothonotary and Senior Master shall hand over the sum of Rs.3,44,62,008/- to the
Appellant with interest accrued if any, which will be adjusted/appropriated towards
the decretal amount.
8. The appeal is accordingly disposed of.
( MILIND N. JADHAV, J.) ( S.J.KATHAWALLA, J. )
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