Kla Const Technologies Pvt. Ltd. vs The Embassy Of Islamic Republic Of ...
2021 Latest Caselaw 2503 Del

$~11
*      IN THE HIGH COURT OF DELHI AT NEW DELHI

%                                         Date of decision: 13.09.2021

+      OMP (ENF.) (COMM.) 82/2019 & EX.APPL.(OS) 901/2021
       KLA CONST TECHNOLOGIES PVT. LTD.               ..... Decree Holder
                          Through    Dr.Amit George, Adv. with
                                     Mr.Kartickay Mathur, Mr.K.K.
                                     Shukla & Mr.Shanker Kashyap,
                                     Advs.

                          versus

       THE EMBASSY OF ISLAMIC
       REPUBLIC OF AFGHANISTAN           ..... Judgement Debtor
                     Through  Mr.Raghavendra M. Bajaj, Mr.Ejaz
                              Maqbool, Ms.Garima Bajaj, Mr.Saif
                              Zia, Mr.Agnish Aditya & Mr.Nikhil
                              Bamal, Advs.

       CORAM:
       HON'BLE MR. JUSTICE SURESH KUMAR KAIT

                          J U D G M E N T (oral)

1. Present execution petition has been filed under Section 36 of the

Arbitration and Conciliation Act read with Order XXI Rule 11(2) of the

CPC, 1908 on behalf of decree holder seeking enforcement of the arbitral

award dated 26.11.2018.

2. Decree holder - Ashok Kumar, Authorised Representative of KLA

Const. Technologies Private Limited company and judgment debtor - The

Embassy of Islamic Republic of Afghanistan had entered into a contract for

the rehabilitation of building of the judgment debtor/Afghan Embassy in

Delhi for a total contract of Rs.3,02,17,066.83 exclusive of taxes.

3. Pertinently, during execution of work, certain disputes arose between

the parties, for resolution of which decree holder invoked the arbitration

clause in view of the terms and conditions of the work contract, however,

judgment debtor did not respond, therefore, decree holder approached the

Hon'ble Supreme Court of India by filing a petition under Section 11 of the

Arbitration and Conciliation Act, 1996 being ARB.P. (Civil) No. 14/2014.

4. Vide order dated 05.01.2015, THE Hon'ble Supreme Court appointed

Shri H.S. Dogra, Director General (Retd.) CPWD sole arbitrator.

Accordingly, decree holder filed its claim of Rs.2,00,47,192.82 along with

pendent lite and future interest before the Arbitrator. Again the judgment

debtor did not join the arbitration proceedings and were accordingly

proceeded ex parte vide order dated 13.11.2017. The learned Arbitrator

partially allowed the claims of the decree holder by passing an award dated

26.11.2018.

5. During the course of hearing today, learned counsel for the decree

holder submits that an out of court settlement has been arrived at between

the decree holder and judgment debtor and the terms of settlement are

recorded in the Settlement Agreement dated 11.09.2021 and the present suit

can be decreed in terms thereof. The aforesaid submissions of learned

counsel for the decree holder, is affirmed by the counsel appearing for

judgment debtor.

6. Though the aforesaid Settlement Agreement dated 11.09.2021, which

is stated to have been filed today vide diary number 755400/2021 in the

Registry, is not on record, however, a hard copy thereof has been produced

before this Court.

7. The terms of settlement have been enumerated in Para-1.1 to Para-2.5

of the Settlement Agreement. According to the settlement, judgment debtor

toward full and final settlement of all claims and outstanding dues toward

the decree holder under the contract and arbitral award, has issued three

cheques total amounting to Rs.68,00,000/- drawn on Kotak Mahindra Bank,

D-10, Nos.1 & 2, Local Shopping Centre, Vasant Vihar, New Delhi, details

whereof have been given in Clause 1.1(i) to (iii) of the Settlement

Agreement. Judgment debtor has also agreed to issue an appreciation letter

in favour of decree holder towards successful and satisfactory execution of

the settlement

8. In the light of clause 1.2 and 1.3 of the Settlement Agreement dated

11.09.2021, the parties have agreed that the Second Party from their Bank

Account Nos.3111478010, 3111478027 and 3111478041 in Kotak Mahindra

Bank, Branch D Block, New Delhi-110057 will issue cheques from the

aforementioned account and will jointly approach this court to recall its

order dated 23.08.2021.

9. In the afore-mentioned agreement, Second Party also agrees to issue

an appreciation letter in favour of first party attesting to the successful and

satisfactory execution of the settlement.

10. Today, learned counsel for the judgment debtor submits that the

judgment debtor shall remain bound by the terms of aforesaid Settlement

Agreement dated 11.09.2021 and the post dated cheques shall be honoured.

11. In view of the aforesaid undertaking furnished on behalf of judgment

debtor, learned counsel for decree holder submits that the present petition be

decreed in terms of Settlement Agreement dated 11.09.2021 and the interim

order dated 23.08.2021 with respect to maintaining of minimum balance of

Rupees One crore and Eighty Lacs in the account Nos. 3111478010,

3111478027 and 3111478041 of judgment debtor at Kotak Mahindra Bank,

Branch D Block, Vasant Vihar New Delhi, be recalled.

12. In the light of aforesaid submission of learned counsel for decree

holder and the Settlement Agreement dated 11.09.2021, order dated

23.08.2021 is recalled and the present suit is decreed in terms mentioned in

Settlement Agreement dated 11.09.2021. Needless to say, parties shall

remain bound by the terms mentioned in the aforesaid Settlement

Agreement.

13. Decree sheet be accordingly drawn in terms of Settlement Agreement

dated 11.09.2021, which shall form part of the decree.

14. The petition is disposed of.

(SURESH KUMAR KAIT) JUDGE SEPTEMBER 13, 2021 ab