Bombay High Court
Atul Shivdas Ganatra vs Inox Wind Ltd on 16 January, 2023
Bench: R. I. Chagla
Digitally signed
by JITENDRA
JITENDRA SHANKAR
SHANKAR NIJASURE
NIJASURE Date:
2023.01.17
18:55:01 +0530
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jsn
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS COMMERCIAL DIVISION
INTERIM APPLICATION NO.3005 OF 2021
IN
EXECUTION APPLICATION (L) NO.27448 OF 2021
WITH
CONTEMPT PETITION NO.(L) NO.3096 OF 2022
Atul Shivdas Ganatra ...Applicant /
Award Holder
Versus
Inox Wind Ltd. ...Judgment
Debtor /
Respondent
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Mr. Priyank Kapadia with Ms. Anuja Jhunjhunwala and Mr. Aditya
Marwal i/b. M Mulla Associates for the Award Holder.
Mr. Karl Tamboly and Shobhana Narayanan i/b Khaitan & Co. for the
Respondent.
Ms. Rekha Rane, 2nd Asstt. to Court Receiver is present.
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CORAM : R.I. CHAGLA J
DATE : 16 January 2023
ORDER :
1. The learned Counsel appearing for the Judgment
Debtor / Respondent has sought discharge of the Court Receiver who
12-ia-3005-2021.doc
was appointed by order dated 16th February, 2022 as Receiver for
security shares which was created by Inox Wind Energy Ltd. in favour
of the Applicant and for which the 23,62,205 shares were kept in
escrow. This was based on the agreement between Inox Wind Energy
Ltd. and the parties to the proceedings that the modalities for
securing the sum awarded by the Sole Arbitrator is a pro tem or
interim security and which will operate till the Respondent furnishes
the bank guarantee in accordance with the orders dated 20th
January, 2022 and 4th January, 2022 passed in Interim Application
No.3005 of 2021. It was further directed in the said order dated 16th
February, 2022 passed by this Court that the Court Receiver shall
manage such escrow account until the furnishing of a bank guarantee
by the Respondent in accordance with the said orders dated 20th
January, 2022 and 4th January, 2022 respectively.
2. The process of opening of the escrow account and
deposit of the shares in the escrow was completed by Inox Wind
Energy Ltd and the Respondent. Thereafter, by an agreement
between the parties as recorded in the order dated 29th March, 2022,
deposit was to be made of an amount of INR 22,69,97,286/- with the
Prothonotary and Senior Master of this Court on or before 31st
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March, 2022. By the said order dated 29th March, 2022 passed by
consent of the Applicant and Respondent it was provided that every
year on or before 30th March of that year, the further amount for
which the bank guarantee was to be provided as per Clause 4 of the
order dated 4th January, 2022 shall be deposited with the
Prothonotary and Senior Master in substitution of furnishing the said
bank guarantee. It was further directed in the said order that the
amount being deposited with the Prothonotary and Senior Master
shall be invested in a fixed deposit with ICICI Bank initially for a
period of one year and to be renewed thereafter annually subject to
further orders of this Court passed in the Execution Proceedings or in
such other proceedings taken out by the Respondent challenging the
award under execution and / or for stay of operation thereof.
3. The learned Counsel for the Judgment Debtor /
Respondent states that the said sum of Rs.22,69,97,286/- has been
deposited with the Prothonotary and Senior Master within the
extended time as extended by the order dated 1st April, 2022.
Accordingly, the Application is made for discharge of the Court
Receiver as well as the direction to the Court Receiver to inform the
HDFC Bank in which the escrow account has been set up to permit
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the Respondent to operate the accounts.
4. There is no objection on the part of the Award Holder
except for seeking a clarification that the discharge of Court Receiver
and allowing the Respondent to operate the escrow account shall be
without prejudice to the Applicants rights and contentions which
includes the contention that the amount deposited requires to be
enhanced and for which appropriate Interim Application will be
taken out seeking such relief. Accordingly, the Court Receiver is
discharged without passing of accounts and upon payment costs,
charges and expenses to be borne by the Respondent as provided for
in Clause 10 of the order dated 16th February, 2022.
5. The Court Receiver shall address a letter to the HDFC
Bank informing them of the discharge of the Court Receiver. The
Court Receiver shall also in the said letter inform the HDFC Bank that
the Court Receiver has no objection to the Respondent operating the
escrow account in which the said security shares have been deposited
as well as the current account. The Court Receiver shall send the
letter to the HDFC Bank within a period of two days from the date of
this Order.
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6. It is clarified that this order is without prejudice to the
rights and contentions of the Applicant / Award Holder including
that the amount which has been deposited by the Judgment Debtor /
Respondent is to be enhanced and appropriate application will be
made by the Applicant to that effect.
7. With these directions, the application by way praecipe of
the Advocate for the Respondent is disposed of.
8. All concerned to act on an authenticated copy of this
Order.
[R.I. CHAGLA J.]
