Back
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Somasekhar Sundaresan
Reliance Naval and Engineering Ltd. – Appellant
Versus
Afcons Infrastructure Ltd. – Respondent
JUDGMENT :
Somasekhar Sundaresan, J.
Context and Factual Background:
1. Interim Application No. 9646 of 2024 (“Interim Application”) in Arbitration Petition No. 1755 of 2015 (“Section 34 Petition”) seeks this Court’s intervention in a rather narrow compass.
2. The Applicant (Original Petitioner in the Section 34 Petition), Reliance Naval & Engineering Ltd. (“Reliance”), earlier known as Pipavav Defence and Engineering Limited was a “Corporate Debtor”, which underwent resolution under the provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”).
3. Under an arbitral award dated August 31, 2015 (“Arbitral Award”), Reliance owed to the Respondent, Afcons Infrastructure Ltd. (“Afcons”), a sum of Rs. 49.11 Crores. The Arbitral Award was challenged by Reliance in the Section 34 Petition.
4. During the conduct of the Section 34 Petition, pursuant to an order of a Learned Single Judge dated February 20, 2017, Reliance deposited a sum of Rs.12,76,91,279 with the Registry of this Court. Such amount came to be withdrawn by Afcons by furnishing a bank guarantee for a corresponding amount. The bank guarantee is admittedly valid until April 30, 2026.
5. It is common ground that after such deposit
The court affirmed that a decree can be issued based on admissions where debts owed are settled through an approved resolution plan, allowing the security deposit to be recovered unconditionally.
IBC is a time bound process – Plea of not being aware of newspaper pronouncements is not one which should be available to a commercial party.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
