Ashok Kumar Ram Sabadh Chaudhary And Anr vs Kotak Mahindra Bank Limited
2024 Latest Caselaw 163 Cal/2

Calcutta High Court

Ashok Kumar Ram Sabadh Chaudhary And Anr vs Kotak Mahindra Bank Limited on 19 January, 2024

Author: Moushumi Bhattacharya

Bench: Moushumi Bhattacharya

OCD-10 & 11

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


                                 AP/742/2023

                     ASHOK KUMAR CHAUDHARY ALIAS
              ASHOK KUMAR RAM SABADH CHAUDHARY AND ANR
                                 VS
                     KOTAK MAHINDRA BANK LIMITED

                                      With

                                 AP/741/2023

                     ASHOK KUMAR CHAUDHARY ALIAS
              ASHOK KUMAR RAM SABADH CHAUDHARY AND ANR
                                 VS
                     KOTAK MAHINDRA BANK LIMITED

  BEFORE:
  The Hon'ble JUSTICE MOUSHUMI BHATTACHARYA
  Date : 19th January, 2024.

                                                                            Appearance:
                                                                Mr. Debraj Sahu, Adv.
                                                                Mr. Sormi Dutta, Adv.
                                                                    ...for the petitioner

                                                            Mr. Ritoban Sarkar, Adv.
                                                           Ms. Shreyashee Das, Adv.
                                                    Mr. Himanshu Bhawsinghka, Adv.
                                                                 ...for the respondent

The Court:- This is an application for stay of an Arbitral award dated 30th

December, 2017. The awarded amount is Rs.26.77 lakhs. Learned counsel

appearing for the award-debtors submits that the award-debtors are truck

drivers and presently have no assets or properties to secure the award.

Counsel accordingly prays for exercise of discretion in that respect.

Learned counsel appearing for the award-holder submits that the award-

holder has challenged a judgment passed by this Court on 22nd December,

2023 on a preliminary point of objection taken by the award-debtor (petitioner

before the Court) which was decided in favour of the award-debtor. Counsel

also seeks to file an Affidavit-in-Opposition to the Section 34 application of the

award-debtor.

Section 36(2) and (3) read with the proviso under the 1996 Act allows for

discretion but does not permit unconditional stay of an award unless the

award-debtor makes out a case under the second proviso to Section 36(3) of

the Act which is for unconditional stay of the award. In the present case,

learned counsel appearing for the award-debtors has, with fairness, not made

out such a case.

However, Section 36(3) gives the Court discretion in the matter of stay of

award.

Hence, AP/742/2023 is disposed of by directing the award-debtors to

secure an amount of Rs.15 lakhs by way of a bank guarantee which shall be

furnished with the Registrar, Original Side of this Court within five weeks from

date. The direction is only in view of the fact that the award-debtors are in

financially involved circumstances. The award will remain stayed from 19th

February, 2024 if the award-debtors comply with this direction. The award-

holder will be at liberty to enforce the award from 20th February, 2024 if the

award-debtors choose not to comply with the direction.

The award-holder shall file its affidavit-in-opposition to the Section 34

application in AP/741/2023 within three weeks from date. Reply within two

weeks thereafter.

List the Section 34 application after five weeks.

(MOUSHUMI BHATTACHARYA, J.)

T.O. A.R.(C.R.)