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RAVI KRISHAN KAPUR
Satyen Construction – Appellant
Versus
State Of West Bengal – Respondent
ORDER :
Ravi Krishan Kapur, J.
This is an application under Section 9 of the Arbitration and Conciliation Act, 1996 ('the Act'). The petitioner seeks liberty to withdraw a sum of Rs.4,11,89,759/- deposited by the award debtor, State of West Bengal, with the Registrar, Original Side of this Court upon furnishing of appropriate security.
2. By an award dated 24 December, 2018 (the award), the petitioner was awarded a sum of Rs.2,66,69,73/- on account of various claims and a further sum of Rs.1,37,85,395/- on account of costs along with interest @18% per annum from 25 December, 2018 till the date of payment. The subject matter of the arbitration pertains to construction of a Bridge at Mahishadal, Nandigram Road, West Bengal. Being aggrieved by the award, the respondent has filed an application under Section 34 of the Act which is pending disposal. In an application under Section 36(2) of the Act, by an order dated 9 September, 2019, a Coordinate Bench had directed the award debtor to furnish security. It is submitted on behalf of the parties, that security has since been furnished by the respondent. Hence, this application.
3. At the outset, a preliminary point of maintainability has been
The scope of Section 9 of the Arbitration and Conciliation Act is limited to interim protective measures and does not extend to enforcement of the award or granting the fruits of the award to the awa....
The Court held that there is no requirement for a specific statutory provision to allow an award-holder to withdraw the secured amount. Sections 35 read with section 36 of the Act make it clear that ....
The court has discretion to modify security arrangements under the Arbitration Act based on changed circumstances, balancing equities between parties while allowing withdrawal of funds.
(1) There is no hard and fast rule that application made earlier in point of time must be heard before application made later in point of time.(2) Under Section 36 of Arbitration and Conciliation Act....
The court clarified that award debtors must deposit the full awarded sum as a condition for staying enforcement, emphasizing that both public and private parties are subject to the same requirements ....
The main legal point established in the judgment is the discretion of the court to direct the petitioner to furnish security on the full arbitral award and the impact of the Arbitration and Conciliat....
Section 9 of Arbitration and Conciliation Act grants wide powers to courts for securing amounts in dispute to prevent asset diminishment before enforcement of arbitral awards.
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