The court upheld the arbitration award and directed the judgment debtor society to pay the principal balance amount to the decree holder, emphasizing the enforceability of arbitration awards and the obligation to fulfill contractual obligations.

MANMOHAN SINGH, J:

1. The decree holder filed the present execution under Section 36 of the Arbitration and Conciliation Act, 1996 read with the provisions of the Order XXI of the Code of Civil Procedure, 1908 for attachment of funds of the judgment debtor for a sum of Rs.56,000/-lying in the account of the judgment debtor with SB A/c No.566 Union of India, I.P.Extension Opposite Shanti Mukand Hospital, Near Hargobind Enclave, Delhi and also prayed for attachment of the basement having an area of 1503.17 sq. ft. and stilt portion having an area of 1503.17 sq. ft. over the basement of the judgment debtor M/s Puja Co-operative Group Housing Society by selling the same for satisfaction of the decree. Prayer is also made in the execution that the judgment debtor comprising of 71 members and each member may be directed to pay its share in terms of the decree passed in favour of the decree holder.

2. The court issued the warrants of attachment of the properties as detailed in the schedule of properties dated 15.10.2008 which were executed as far as attachment of immovable properties being basement and stilled portion over the basement of group Housing Society is concerned.

3. In the order dated 19.8.2009 as far as the attachment of bank account is concerned, it was mentioned before the court that there was no substantial money in the bank accounts. The court also recorded on that day that a larger number of persons claiming to be residents of judgment debtor Group Housing Society were present in court who are the effected parties and claim that they had paid the dues of construction and they are in possession of their respective flats. Their claim is that fraud has been played upon them and sought time to make their submission.

4. Thereafter, the members of the judgment debtor society filed the objections to the execution on 3.9.2009 being EA No.537/2009. Time was sought to file the reply to the said application. The following are the main contentions of the members of the cooperative society;-

A. The members have paid full dues before taking possession of their flats. The society has issued no dues certificate to the individual members who are the bona fide residents of the society. According to them, the society was completed in June, 1994 and the possession was handed over by the contractor to the society and the society started giving the possession to the members against the maintenance charges etc.

B. It is the further contention of the objectors that the total value of the contract awarded to the contractor was Rs.2.50 crores which was later on revised to 2.75 crores. While checking the 15th running bill, it appears that the contractor used to claim much higher amount in every bill while architect used to cut in every bill. However, the 16th bill was raised with the mala fide intention ever after handing over the possession of the flats to the society as it is evident from the table, the 16th bill was raised on 21.11.1996 which took two years and two months to architect to pass the bill.

C. It is contended that the said 16th bill was never entered in the books of the society. The balance sheets for the year 1995-96 to 1998-99 were given to the members on 1.9.2000 and were passed in AGM held on 2.10.2000 shows a debit balance of Rs.22,29,523/-due from the contractor.

5. The facts of the case are that the work of “construction of 71 Dwelling Units at Plot No.77, I.P. Extension, Patparganj, Delhi” was awarded by M/s Puja Co-operative Group Housing Society Limited (hereinafter called the “Society or the “Respondent”) to M/s Kanwarji Construction Company, then a partnership firm, on the basis of tenders invited and their tender having been accepted vide letter of Award dated 16.11.1987, on the terms and conditions mentioned in this award letter, the agreement dated 18.11.1987 was executed between the parties with other tender documents forming part of the contract. The contract was given for total of Rs.250 lac.

6. The ra