National Jute Manufacturers ... vs Saurabh Muklania
2023 Latest Caselaw 1782 Cal/2

                         IA No. GA 1 of 2023
                        APOT No. 239 of 2023
                                 with
                          EC No. 22 of 2022
                 IN THE HIGH COURT AT CALCUTTA
                          In appeal from its
               ORDINARY ORIGINAL CIVIL JURISDICTION
                  CIVIL APPELLATE JURISDICTION
                         (Commercial Bench)


               National Jute Manufacturers Corporation Ltd.
                                 Versus
                            Saurabh Muklania

Before:
The Hon'ble Justice I. P. MUKERJI
            And
The Hon'ble Justice PRASENJIT BISWAS
Date: 1st August 2023

                                                                 Appearance:
                                          Mr. Aniruddha Chatterjee, Advocate
                                               Mr. Rahul Karmakar, Advocate
                                   Mr. Surya Prasad Chattopadhyay, Advocate
                                               for the appellant/award-holder
                                          Mr. Srinjoy Bhattacharya, Advocate
                                                           for the respondent

The Court: Order in terms of prayer (a) of the stay petition.

We admit the appeal.

As the dispute involved is short, we are in a position to

dispose of this appeal dispensing with all formalities.

The appellant/award-debtor is a Government of India

company. It has already secured 75% of the awarded amount. It was

in default with regard to 25% of it. For such default, in our opinion,

the impugned judgment and order dated 20th July 2023 was a little

harsh.

On the prayer of Mr. Chatterjee assisted by Mr. Karmakar,

learned advocates appearing for the appellant/award-debtor, we grant

them time till 10th August 2023 to furnish Rs. 2,76,00,000/- as cash

security by way of a bank draft/banker's cheque in favour of the

Registrar, Original Side, High Court, upon intimation to the

respondent.

The Registrar, Original Side shall invest the entire deposited

amount with the State Bank of India, Kolkata High Court Special

Branch in a short term deposit earning the highest rate of interest,

upon intimation to the parties. She shall also furnish half-yearly

statements of account to the parties in relation to the said deposit and

account.

Till 10th August 2023 there shall be unconditional stay of the

execution of the award.

Upon furnishing of the above 25% security the stay of

execution of the award shall stand extended till the disposal of the

application under section 34 of the Arbitration and Conciliation Act,

1996. Further dealing with the security would abide by the result of

such application.

If the appellant/award-debtor is in default, the execution may

be levied to realise the award, with the leave of this court.

The orders of the learned single judge dated 26th June 2023

and 20th July 2023 are superseded by this order.

In the facts and circumstances of this case as recorded in the

impugned judgment and order, the appellant shall pay to the

respondent costs as assessed by the learned single judge at

Rs.20,000/- by 10th August 2023.

The appeal (APOT 239 of 2023) and the stay application (IA

No. GA 1 of 2023) are disposed of.

As affidavits were not invited, allegations contained in the stay

application are deemed not to have been admitted.

(I. P. MUKERJI, J.)

(PRASENJIT BISWAS, J.)

R. Bose