ORDER :

R.I. Chagla, J.

By this Interim Application, the Applicant/Petitioner has sought a stay of the operation, effect, execution and implementation of the impugned Award dated 11th May, 2021, further corrected on 7th September, 2021.

2. By a separate order bearing today's date, the Arbitration Petition has been admitted on the ground that there are arguable questions of law raised in the Arbitration Petition, which requires consideration at the hearing of the Petition. The Arbitration Petition has been expedited.

3. Mr. Chetan Kapadia, learned Senior Counsel for the Applicant/Petitioner has stated on instructions that 100% Bank Guarantee will be furnished by the Applicant/Petitioner in respect of principal amount awarded by the learned Arbitrator viz. an amount of Rs.1,80,00,000/-.

4. Having perused the Award of the learned Arbitrator and taking note of the submissions of the Applicant/Petitioner and the Respondent, in my prima facie view, there is perversity in the findings of the learned Arbitrator in the Award. The learned Arbitrator has awarded the claim which included interest at 2% per month on Rs.1,80,00,000/- w.e.f. 12th May, 2018 which is held to be the expiry of 30 days from the date when the news of the investment reached the Claimant through news articles. In the agreement between the parties containing the arbitration clause, being letter dated 22nd November, 2016, addressed by the Respondent and accepted by the Applicant/Petitioner, under the Disclosure and Payment of Invoices, the following is provided :

"All invoices raised by Cipher-Plexus in accordance with this Mandate, shall be paid forthwith within 30 days, after which interest @ of 2% pm on the outstanding amount shall be payable for the delayed period. The Client shall make adequate disclosure of this Mandate during the due diligence exercise and it will be presumed that the parties are closing the Transaction with full knowledge of existence of this Mandate. This Mandate is not open to re-negotiation by the Client/Counter Party/third party for any reason whatsoever."

5. It is clear from this Clause that an invoice is required to be raised by the Respondent in accordance with the mandate and which is to be paid forthwith within 30 days. After expiry of 30 days, interest at 2% on the outstanding amount shall be payable for the delayed period.

6. In the facts of the present case, there is no invoice raised claiming the awarded amount as per the Statement of Claim. The further interest at 2% on the outstanding amount is only payable after expiry of 30 days from raising the invoice. In view of there being no invoice raised, there is prima facie perversity in the finding of the learned Arbitrator that interest of 2% per month on Rs.1,80,00,000/- is with effect from 12th May, 2018 viz. the expiry of 30 days from the date when the news of investment reached the Claimant through news articles. This apart from the issue as to whether the principal amount was in the first place payable given the fact there was no invoice raised for the said amount.

7. Hence, I am of the prima facie view that this finding of the learned Arbitrator is beyond the scope of the Agreement. Prima facie I am of the view that the learned Arbitrator has given perverse findings contrary to the Agreement between the parties.

8. Accordingly, I accept the request on behalf of the Petitioner for furnishing 100% Bank Guarantee of a scheduled nationalised bank for the principal amount awarded i.e. Rs.1,80,00,000/- by excluding the interest awarded. Hence, the following order is passed :

(i) The operation, effect, execution and implementation of the impugned Award dated 11th May, 2022, further corrected on 7th September, 20