Madras High Court
M.Pallonji Logistics Private Ltd vs M/S.Poompuhar Shipping ... on 3 September, 2021
O.S.A.(CAD) Nos.40 and 41 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03.09.2021
CORAM :
THE HON'BLE MR.SANJIB BANERJEE, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE P.D.AUDIKESAVALU
O.S.A. (CAD) Nos.40 and 41 of 2021
M.Pallonji Logistics Private Ltd.
Rep. by its Director,
No.44, Cawasji Patel Street,
Fort, Mumbai 400 001. ... Appellants in
both appeals
Vs
1. M/s.Poompuhar Shipping Corporation
Ltd., Rep. by its Managing Director,
Regd. Office at No.692, Anna Salai,
IV Floor, Nandanam, Chennai 600 035.
2. Tamil Nadu Power Finance and Infrastructure
Development Corporation Ltd.,
Tufidco - Powerfin Tower, 490/3-4,
Anna Salai, Nandanam, Chennai 600 035.
3. State Bank of India,
Overseas Branch, 86, Rajaji Salai,
Chennai 600 001.
4. State Bank of India,
Nandhanam Branch, EVR Periyar Maligai,
474, Anna Salai, Nandanam,
Chennai 600 035.
5. Indian Bank,
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O.S.A.(CAD) Nos.40 and 41 of 2021
Nandanam Branch,
480, Anna Salai, Nandanam,
Chennai 600 035. ... Respondents in
both appeals
Appeals filed under Clause 15 of Letters Patent read with Order
XXXVI Rule 9 of O.S. Rules and Section 37 of the Arbitration and
Conciliation Act, 1996, against the common order dated 15.07.2021
passed in O.A.Nos.328 and 329 of 2021 on the file of original side of
this court.
For the Appellant : Mr.S.Vasudevan
For the Respondents : Mr.Rajendran Ragavan
for R-1
: Mr.G.Mohanakrishnan for R-2
: No appearance for RR 3 to 5
*****
COMMON JUDGMENT
(Delivered by the Hon'ble Chief Justice)
It is submitted on behalf of the appellant that in terms of the
order dated August 17, 2021, a sum in excess of Rs.19 crore has
been deposited in no lien account with a nationalised bank by or on
behalf of the first respondent.
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O.S.A.(CAD) Nos.40 and 41 of 2021
2. The appeals are directed against a common order of July 15,
2021. The grievance of the appellant is that despite the Court
noticing the first respondent’s acknowledgment of liability in excess
of Rs.19.71 crore and the virtual impecuniosity of the first respondent
Government company, adequate security was not directed to be
furnished.
3. It is the appellant’s present request that since substantial
security has been deposited, the appellant should be permitted to
withdraw the same or a large part thereof to meet the immediate
expenses of the appellant, particularly for the purpose of repairing a
ship in China.
4. The primary consideration of a Court at the interim stage,
particularly on a petition under Section 9 of the Arbitration and
Conciliation Act, 1996, is to ensure that the claim of the claimant is
protected. In this case, considering the apparent admission and the
parlous state of the first respondent company, this Court was minded
to enhance the quantum of security that was directed to be furnished
by the arbitration court. The quantum of security now furnished
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O.S.A.(CAD) Nos.40 and 41 of 2021
appears to appropriately protect the appellant’s interest.
5. It is an altogether different kettle of fish to allow the
petitioner to appropriate all or any part of the deposit which has been
made pursuant to an order for security to be furnished.
6. The ideal way in which this matter could have been
concluded at this stage was to dispose of both the petition under
Section 9 of the Act before the arbitration court and the present
appeals by recording that the deposit has been made. However, since
no arbitrator has been appointed yet and the arbitral reference has
not commenced, so to say, it is left open to the appellant herein to
approach the arbitration court to obtain payment from the deposit
that has already been made in terms of the previous orders. As of
now, it does not appear to be appropriate, particularly in these
appeals, to allow the appellant to withdraw any sum for whatever
purpose that the appellant may need the same.
7. Since the first respondent has issued a letter to the appellant
herein for reconciliation of accounts, it will be open to the parties to
attempt reconciliation without prejudice to their rights and
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O.S.A.(CAD) Nos.40 and 41 of 2021
contentions in the pending proceedings.
8. O.S.A.(CAD) 40 of 2021 and O.S.A.(CAD) 41 of 2021 are
disposed of. C.M.P.Nos.11433 and 11460 of 2021 are closed. There
will be no order as to costs.
(S.B., CJ.) (P.D.A., J.)
03.09.2021
Index : yes/no
tar
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O.S.A.(CAD) Nos.40 and 41 of 2021
THE HON'BLE CHIEF JUSTICE
AND
P.D.AUDIKESAVALU, J.
(tar)
O.S.A.(CAD) Nos.40 and 41 of 2021
03.09.2021
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