Tata Sponge Iron Limited vs Msp Sponge Iron Limited
2023 Latest Caselaw 2981 Cal/2

O-158
                   IN THE HIGH COURT AT CALCUTTA
                 ORDINARY ORIGINAL CIVIL JURISDICTION
                             ORIGINAL SIDE


                                 EC/201/2019


                        TATA SPONGE IRON LIMITED
                                  VS
                        MSP SPONGE IRON LIMITED



  BEFORE:
  The Hon'ble JUSTICE RAVI KRISHAN KAPUR

Date : 16th October, 2023.

Appearance:

Mr. Deepan Sarkar, Adv.

Mr. Jaydeb Ghorai, Adv.

Mr. Diptesh Ghorai, Adv.

The Court : This is an application for execution of an award dated 17

July, 2018 whereby the judgment debtor has been directed to pay a sum of

Rs.1,11,41,882/-.

It is submitted on behalf of the award holder that the award has attained

finality and there is no embargo in proceeding with this execution application.

By virtue of an order passed under Section 36(2) of the Arbitration and

Conciliation Act, 1996, the award debtors were directed to secure the awarded

amount on certain terms and conditions.

It is submitted on behalf of the award holder that during the pendency of

this application it has transpired that the bank guarantee furnished by the

award debtor has lapsed and no steps have been taken for extension of the

same for more than two years.

In this regard, a letter dated 5 October, 2023 written by the Assistant

Registrar confirms that the bank guarantee has not been extended after 22

April, 2021.

Accordingly, there has been non-compliance with the direction contained

in the order passed under Section 36 (2) of the Act. As such, there is no

embargo in proceeding with this application. The judgment debtor remains

unrepresented. There is no accommodation prayed for on behalf of the

judgment debtor.

In view of the breach and violation of the terms and conditions contained

in the order dated 29 July, 2019, the decree holder is permitted to withdraw

the sum of Rs. 60 lakhs alongwith any accrued interest lying with the

Registrar, Original Side in terms of the order dated 29 July, 2019 and

appropriate the same towards part satisfaction of the decretal dues.

Let this matter appear on 17 November, 2023 for further orders.

The decree holder is also directed to serve a copy of this order on the

judgment debtor who is directed to be present on the returnable date.

(RAVI KRISHAN KAPUR, J.) SK.