Calcutta High Court
Srmb Srijan Limited vs Great Eastern Energy Corporation ... on 17 September, 2024
Author: I. P. Mukerji
Bench: I. P. Mukerji
ODC-1
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
CIVIL APPELLATE JURISDICTION
ORIGINAL SIDE
APOT 327 of 2024
WITH
AP-COM 281/2024
IA No.GA-COM/1/2024
SRMB SRIJAN LIMITED
VERSUS
GREAT EASTERN ENERGY CORPORATION LIMITED
Before:
The Hon'ble Justice I. P. MUKERJI
And
The Hon'ble Justice BISWAROOP CHOWDHURY
Date: 17th September, 2024
Appearance:
Mr. Jayanta Kumar Mitra, Senior Advocate
Mr. Sakya Sen, Advocate
Mr. Arnab Das, Advocate
Ms. Syeda Romana Sultan, Advocate
...for the Appellant
Mr. Ratnanko Banerji, Senior Advocate
Mr. Sarvapriya Mukherjee, Advocate
Mr. Konishk Kejriwal, Advocate
Mr. VVV Sastry, Advocate
Mr. Debargha Basu, Advocate
Mr. Debjyoti Saha, Advocate
...for the Respondent
The Court:- Order in terms of prayer (a) of the stay petition.
We formally admit the appeal.
Mr. Ratnanko Banerji, learned senior advocate appearing for the
respondent/award-holder is absolutely right in his submission that in a
challenge to a monetary arbitral award in a proceeding under section 34 of the
Arbitration and Conciliation Act, 1996, the award-debtor is to secure the entire
awarded amount.
This has been reiterated by the supreme court in the recent case of
Toyo Engineering Corporation and Another vs. Indian Oil Corporation Limited,
reported in 2021 SCC OnLine SC 3455.
Mr. Jayanta Kumar Mitra, learned senior advocate appearing for the
appellant places some most important facts before us. They are as follows:
An application under Section 36 of the said Act was disposed of by a
learned single judge of this court on 29th February, 2024 by directing the
appellant to secure the entire awarded sum of Rs.70 crores.
In a special leave petition preferred against that order before the
supreme court by the appellant, the Supreme Court by its order dated 26th
April, 2024 had reduced the security to Rs.15 crores, that too, to be paid in two
instalments of one for Rs. 7.50 crores before 24th May, 2024 and the other
Rs.7.50 crores before 15th July, 2024. The court specifically stated that upon
the said deposit being made by the appellant, there would be stay of execution
of the award during the pendency of the section 34 application.
Thereafter, the section 34 application has been dismissed by a
detailed judgment and order dated 5th September, 2024. This appeal has been
preferred against such dismissal.
Mr. Banerji, learned senior advocate, argues that the remission of
deposit granted by the Supreme Court was confined to the section 34
proceedings and could not be carried to the appeal.
We are unable to accept such contention.
The award-debtor is directed to provide security of the awarded
amount to secure the sum pending challenge to the award. The challenge is
commenced by a Section 34 proceedings. There is a right of appeal under
Section 37. When such remedy of appeal is availed of, it is under the most
general principles known to us, taken to be a continuation of the trial court
proceedings. That security would hold good till disposal of the appeal, in our
opinion.
If Mr. Banerji's client wants any alteration in that security, only the
supreme court could do so. We are bound by its judgment dated 26th April,
2024.
However, we propose to hear out the appeal as expeditiously as
possible dispensing with all formalities.
As the respondent is represented by learned advocate, issuance and
service of the notice of appeal are dispensed with.
Advocate-on-record for the appellant shall file an informal paper book
in this Court by 6th November, 2024 serving a copy thereof upon the advocate-
on-record for the respondent, at least seven days before the date of hearing of
the appeal.
List the appeal for hearing on 13th November, 2024.
The stay application (IA No.GA-COM/1/2024) is disposed of.
The stay of execution of the award will continue till 16th December,
2024 or until further orders, whichever is earlier, so that there is pressure
upon all of us to dispose of the appeal.
As affidavits were not invited, the allegations contained in the
application are deemed not to be admitted.
(I. P. MUKERJI, J.)
(BISWAROOP CHOWDHURY, J.)
cs
