Srei Equipment Finance Ltd vs The Karur Vysya Bank
2023 Latest Caselaw 2790 Cal/2

OCD-8
                                 ORDER SHEET

                                 AP/636/2023

                      IN THE HIGH COURT AT CALCUTTA
                       Ordinary Original Civil Jurisdiction
                                ORIGINAL SIDE
                             (Commercial Division)


                        SREI EQUIPMENT FINANCE LTD.
                                    VS
                           THE KARUR VYSYA BANK


  BEFORE:
  The Hon'ble JUSTICE MOUSHUMI BHATTACHARYA
  Date : 4th October, 2023.
                                                                          Appearance:
                                                        Mr. Swatarup Banerjee, Adv.
                                                             Mr. Sariful Haque, Adv.
                                                              Mr. Rajib Mullick, Adv.
                                                          Ms. Sonia Mukherjee, Adv.
                                                         Mr. Biswaroop Ghosh, Adv.
                                                                  ...for the petitioner

                                                              Ms. Sweta Gandhi, Adv.
                                                                  ...for the respondent

The Court: Learned counsel appearing for the parties submit that the

subject-matter of the present dispute was adjudicated upon and decided by a

judgment delivered by this Court on 9th August, 2023 in four arbitration

petitions involving the same issue.

The petitioner prays for similar orders as were before the Court in the

judgment dated 9th August, 2023. The prayer is for a restraint on the

respondent from transferring or dealing with the amount in the escrow account

in the respondent bank bearing the account number stated in prayer (b) of the

application. The respondent had objected to the application on the ground

that the applications were not maintainable since the petitioner had already

invoked the arbitration clauses by way of Notices issued under Section 21 of

the 1996 Act. The Court had dealt with such objections and had decided in

favour of the petitioner. The arbitration petitions were allowed on the ground

that it was necessary to preserve the subject-matter of the disputes until the

arbitral tribunal is constituted. The arbitration petitions had been disposed of

by directing the respondent bank not to transfer or deal with the amounts in

the escrow accounts bearing the particular numbers till formation of the

arbitral tribunal or until the parties approach the tribunal under Section 17 of

the 1996 Act.

The facts in the present application are identical to those which were

presented to the Court in the connected matters. The Court is informed that

the respondent has not challenged the judgment dated 9th August, 2023.

Hence, AP/636/2023 is allowed and disposed of by an order of

injunction restraining the respondent from transferring any amount from the

escrow account bearing no. 2105107000000140 in the Karur Vysya Bank till

constitution of the arbitral tribunal which shall be within 60 days from today

or until the parties are in a position to approach the tribunal under Section 17

of the Act.

(MOUSHUMI BHATTACHARYA, J.)

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