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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ABHAY AHUJA
Reliance Asset Reconstruction Company Limited – Appellant
Versus
Hiroo Hotchand Advani – Respondent
ORDER :
ABHAY AHUJA, J.
1. The two Chamber Summonses seek assistance in execution of the awards dated 22nd October 2012 and for deposit of the decretal amounts along with interest after respectively adjusting part of the amounts of Rs.5,11,113/- and Rs.13,51,740/- of the demand draft of Rs18,62,853/- received from the Judgment Debtors. The Applicant in the Execution Applications as well as in the Chamber Summonses is the assignor of the Decree holder who had loaned monies around 2010 to 2011 to the Judgment Debtors under two loan accounts : loan account no.RALPMUM000043150 amounting to INR 2,50,00,000/- and loan account no.RALPMUM000045338 amounting to INR 1,56,00,000/-. Since disputes arose between the parties on account of the two Judgment Debtors failing to service the loan, arbitral proceedings commenced. On 22nd October 2012, the awards were passed in the arbitral proceedings pertaining to both the loans. As regards the loan amount of Rs.1,56,00,000/-, the Judgment Debtors were directed to inter alia jointly and/or severally pay to the Claimant a sum of Rs.1,79,16,334.95 together with interest at the rate of 14.50 percent per annum from 21st April 2012 till payment or realizatio
Encashment of demand draft offered in full and final settlement without prior protest constitutes acceptance by conduct under Section 8, Indian Contract Act, satisfying the awards; subsequent protest....
Payment recognized under decree requires unconditional compliance; bank guarantees do not suffice, and interest continues until funds are available to the decree holder.
Conditional compromise decrees require fulfillment of specific obligations for enforceability; failure to comply renders them unenforceable.
Consent decrees are binding and enforceable, and courts can dispense mandatory notice for execution to prevent undue delay if justice requires it.
Execution of an arbitral award requires compliance with the 90-day limitation under Section 34; execution petitions filed before this period are impermissible.
The court ruled that an unsubstantiated claim for set off cannot affect the enforceability of an arbitral award, and interest on decreed amounts runs from the date the claim arose.
A decree's joint liability cannot be severed or modified unilaterally; the recording of payments must meet procedural standards set forth in the Code of Civil Procedure.
Interest ceased to run on the deposited amount after the dismissal of FAO No. 284/2005 on 04.12.2008.
The execution of a decree for specific performance does not require the presentation of a draft deed if a valid draft exists on record, and payment into court suffices for compliance.
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