Madras High Court
M/S.Chemplast Sanmar Limited vs Chairman on 24 November, 2021
C.M.A(MD)No.971 of 2014
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 24.11.2021
CORAM
THE HONOURABLE MR.JUSTICE S.VAIDYANATHAN
and
THE HONOURABLE DR.JUSTICE G.JAYACHANDRAN
C.M.A(MD)No.971 of 2014
and
C.M.P(MD)No.5039 of 2018 and M.P(MD)No.2 of 2014
M/s.Chemplast Sanmar Limited,
a company registered under
Companies Act, 1956 and having
its Registered Office at
9, Cathedral Road, Chennai-600 086,
Represented by its Authorised Signatory .. Appellant/Petitioner
Vs.
1.Chairman,
VOC Port Trust,
Thoothukudi- 628 004.
2.Estate Officer,
Engineering Department (Civil Revision Petition),
VOC Port Trust,
Thoothukudi- 628 004. .. Respondents/Respondents
PRAYER:- Appeal filed under Section 37(1)(a) of the Arbitration and
Conciliation Act, 1996, to set aside the order, dated 01.09.2014 made
1/6
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C.M.A(MD)No.971 of 2014
under Arbitration OP.No.Unnumbered of 2014 on the file of the learned
Principal District Judge, Thoothukudi.
For Appellant : Mr.T.Ravichandran
for Mr.K.Govindarajan
For R1 : Mr.VR.Shanmuganathan
For R2 : Mr.A.Arivuchandran
JUDGMENT
S.VAIDYANATHAN, J.
and
DR.G.JAYACHANDRAN, J.
This civil miscellaneous appeal is filed by M/s.Chemplast Sanmar
Limited against the Chairman of VOC Port Trust, Thoothukudi, being
aggrieved by the order of the learned District Judge, Thoothukudi, who
declined to entertain Section 9 application in respect of breach of lease
agreement carrying an arbitration clause.
2.The appellant herein, before invoking the arbitration clause, had
approached the District Court for an interim protection under Section 9 of
the Arbitration and Conciliation Act, 1996, which was declined by the
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C.M.A(MD)No.971 of 2014
District Court. Aggrieved by that, this appeal is filed before this Court and
an interim order was passed directing the respondent Port Trust to deposit
the disputed amount in an escrow account. While fact being so, the parties
have approached the Principal seat of High Court under Section 11(6) of
the Arbitration and Conciliation Act, 1996, and the Hon'ble Justice
Mr.K.Venkataraman appointed as arbitrator. After enquiry, he has passed
an award and the said award is now the subject matter of Arbitration O.P.
58 of 2017 on the file of the District Judge, Thoothukudi.
3. Since the purpose of the application under Section 9 was filed by
the appellant herein has been served, this appeal has become infructuous.
However, pursuant to the interim order passed by this Court, a sum of
Rs.1,68,29,172/- (Rupees One crore sixty eight lakhs twenty nine
thousand one hundred and seventy two only) lying in the escrow account
of C.M.A.(MD).No.971 of 2014 in the Indian Overseas Bank,
Thoothukudi. Therefore, the learned counsel for the appellant wants to
withdraw the amount on furnishing bank guarantee since the amount
deposited does not earn any interest.
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C.M.A(MD)No.971 of 2014
4. The learned counsel for the respondent Port Trust would submit
that since the award of the arbitrator is under challenge, though there is no
interim order of stay of the award, but to protect the interest of the parties,
the amount may continue to be in the escrow account till the disposal of
the Arbitration O.P.58 of 2017 pending on the file of the learned District
Judge, Thoothukudi.
5. On considering the rival submissions, in order to protect the
interest of the parties concerned, this Court is of the view that the order
passed by this Court, dated 11.09.2014 shall be modified and the amount,
which is now in escrow account at Indian Overseas Bank, Thoothukudi
can be converted in to FD to the credit of the Arbitration O.P.58 of 2017
for a period of six months and renewable periodically, if necessary, and it
will be disbursed later as per the outcome of the Arbitration O.P.58 of
2017. Meanwhile the learned District Judge, Thoothukudi is directed to
dispose of the Ar.O.P.58 of 2017 as expeditiously as possible.
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C.M.A(MD)No.971 of 2014
6. With the above direction, this Civil Miscellaneous Appeal is
closed. No costs. Consequently, connected miscellaneous petitions are
closed.
[S.V.N., J.] [G.J., J.]
24.11.2021
Index :Yes/No
Internet :Yes/No
PJL
Note: In view of the present lock down owing to
COVID-19 pandemic, a web copy of the order
may be utilized for official purposes, but,
ensuring that the copy of the order that is
presented is the correct copy, shall be the
responsibility of the advocate/litigant concerned.
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C.M.A(MD)No.971 of 2014
S.VAIDYANATHAN, J.
and
DR.G.JAYACHANDRAN, J.
PJL
C.M.A(MD).No.971 of 2014
24.11.2021
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