Calcutta High Court
Union Of India & Anr vs Pam Developments Pvt. Ltd on 17 May, 2022
OD 17
IA NO.GA/4/2022
AP/1121/2016
IN THE HIGH COURT AT CALCUTTA
ORDINARY ORIGINAL CIVIL JURISDICTION
ORIGINAL SIDE
UNION OF INDIA & ANR
VS
PAM DEVELOPMENTS PVT. LTD.
BEFORE:
The Hon'ble JUSTICE SHEKHAR B. SARAF
Date : 17th May, 2022.
Appearance:
Mrs. Aparna Banerjee, Adv.
..for Petitioner.
Mr. Priyankar Saha, Adv.
Mr. Amritam Mandal, Adv.
Ms. Ananya Chakraborty, Adv.
Ms. Shipra Naskar, Adv.
..for Respondent.
The Court:-This is an application to withdraw the amount deposited by
the award debtor before this Hon'ble Court by virtue of the order dated 14th
March, 2022 upon furnishing of bank guarantee of the said amount.
According to the applicant the work in question is of the year 2000-
2001 which was completed on or about 30th September, 2007 and Section 11
application for appointment of arbitrator was filed before this Hon'ble Court
being A.P.No.158 of 2009 in which an arbitrator was appointed who had
passed an award on 8th August, 2016 for a sum of Rs.38,86,560/- inclusive of
interest as calculated till 2nd February, 2022.
The said award was duly challenged by filing an application under
section 34 before this Hon'ble Court being A.P. No.1121 of 2016 which is
pending before this Court. Subsequently by an application for stay filed under
Section 36(2) being G.A. No. 3 of 2022 was taken up for consideration and by
an order dated 14th March, 2022 the award debtor was directed to deposit a
sum of Rs. 38,86,560/- in the form of cash security to the satisfaction of the
Registrar, Original Side.
The said deposit has been made in terms of the order dated 14th March,
2022 with the Registrar, Original Side.
The applicant submits that the tender was for the year 2000-2001 and
even after 21 years of the issuance of the said tender, payments are due to the
applicant although an award in the meantime have been passed. Accordingly,
the applicant prays for leave to be granted to the applicant to withdraw the
said amount of Rs. 38,86,560/- upon furnishing of bank guarantee to the
satisfaction of the Registrar, Original Side.
Mr. Saha relies upon orders passed by Hon'ble Supreme Court wherein
the Hon'ble Supreme Court had allowed withdrawal of the amount deposited
by award debtors for release of the amount on furnishing bank guarantee. He
also relies on a Division Bench judgment of this Court in APOT No.144 of 2021
(West Bengal Transport Infrastructure Development Corp. Ltd. -vs- Shristi
Infrastructure Development Corporation Limited) wherein the Division Bench
have upheld the withdrawal of the amount deposited by the award debtor upon
furnishing bank guarantee. Mr. Saha further relies on a co-ordinate Bench
judgment of this Court in A.P. No. 40 of 2020 (Damodar Valley Corporation -
vs- Reliance Infrastructure Ltd. ) which had allowed withdrawal of the amount
on furnishing bank guarantee.
Having heard the parties, this Court is of the view that subject to the
applicant furnishing a bank guarantee from any scheduled bank of RBI for an
amount of Rs. 38,86,560/- to the satisfaction of the Registrar, Original Side,
the Registrar will release the amount deposited by the award debtor in favour
of the applicant. It is made clear that the bank guarantee has to be renewed
and/or kept alive by the applicant till disposal of A.P. No.1121 of 2016. The
renewal should be done one month prior to the date of expiry of the bank
guarantee. Registrar, Original Side to take steps in this regard.
I.A.NO. GA/4/2022 is disposed of in terms of the aforesaid order.
(SHEKHAR B. SARAF, J.)
nm
