IN THE HIGH COURT OF DELHI AT NEW DELHI
RAJIV SAHAI ENDLAW, AMIT BANSAL, JJ.
DELHI CHEMICAL AND PHARMACEUTICAL WORKS PVT. LTD. & ANR.- Appellant
Versus
HIMGIRI REALTORS PVT. LTD. & ANR. - Respondents
EFA (OS)(COMM) NO.4 of 2021, CM No.11905 of 2021 (FOR STAY) & CM No.11906 of 2021
Decided on : 05-07-2021
Commercial Courts Act, 2015 - Section 13(1A) - Code of Civil Procedure, 1908 Order XXI Rule 41 – Arbitral Award – Execution of - Attachment of property – Condonation of delay of 346 days in filing of the appeal - whether a claim made by one against the other and controverted by the other, on adjudication thereof, whether by the Court or by the Arbitrator, ceases to be a “dispute”, for it to be said that the proceedings for execution of adjudication of a commercial dispute, whether by way of a decree or an arbitral award, do not qualify as a “dispute - whether Execution Petitions are “applications” within the meaning of Sections 10, 12, 6 and 7 of the Commercial Courts Act -Order XXI Rule 11(2) of the CPC provides that every ‘application’ for execution of a decree shall be in writing, signed and verified. Thus the CPC, in accordance wherewith an arbitral award is to be executed/enforced
Finding of the Court:
S.123 mandates each High Court to constitute a Rule Committee, for exercising powers vested under Section 122. Section 124 provides for the report of the Rules Committee to be placed before the “High Court”. Section 125 and Section 126 provide for consultation and approval of the State Government in the exercise of such powers by the High Court and Section 127 provides for publication of such Rules made by the High Court -As per the existing provisions of Order XXI Rule 41 of the CPC, the Commercial Division, in our view erred in issuing direction to judgment debtors to file affidavits and affidavits in a form other than as prescribed in the CPC. The impugned orders do not record that the decree holder had applied therefore, verbally or in writing. A direction under Order XXI Rule 41 could not have been issued without the decree holder applying therefore. Such direction could not have been issued without, inspite of taking steps and owing to obstruction by the judgment debtor, the decree remaining unsatisfied. No reason whatsoever has been given in the impugned orders as to why the directions as issued were called for in the facts of the case or why affidavit in the form prescribed in the CPC could not have sufficed.
Result: Appeal disposed of
JUDGMENT :
RAJIV SAHAI ENDLAW, J.
1. This appeal, under Section 13(1A) of the Commercial Courts Act, 2015, impugning the orders dated 23rd December, 2019 and 13th March, 2020 of the Commercial Division of this Court in OMP(ENF.)(COMM) No.140/2019, and accompanied with applications for condonation of delay of 346 days in filing of the appeal and for stay of the impugned orders, came up before us for admission on 27th April, 2021, when finding the impugned orders to have been passed by only referring to Bhandari Engineers & Builders Pvt. Ltd. Vs. Maharia Raj Joint Venture MANU/DE/4601/2019 and further being of the view that there was an inconsistency between Bhandari Engineers & Builders Pvt. Ltd. supra and M.L. Gupta Vs. Aerens Gold Souk International Ltd. 2018 SCC OnLine Del 7621, and being otherwise also of the opinion that the matter required consideration, leaving open the aspect of maintainability of the appeal, notice of the appeal and the applications was issued.
2. The senior counsel for the appellant no.1 Delhi Chemical and Pharmaceutical Works Pvt. Ltd. and appellant no.2 Ameet Sharma, the counsel for the respondent no.1 Himgiri Realtors Pvt. Ltd. and the senior counsel for respondent no.2 Samir Dev Sharma, were heard on 25th May, 2021, on, the application for condonation of delay in preferring the appeal, maintainability of the appeal as well as on the merits of the appeal, and orders reserved.
3. As far as the delay in preferring the appeal is concerned, the appellants, in the application for condonation of delay, have attributed the same to (i) suspension of the period of limitation during the prevalent Covid-19 pandemic; and, (ii) the appellant no.2, who is the authorized signatory of the appellant no.1, being unwell and the old age of his mother.
4. The counsel for the respondent no.1, which is the only contesting respondent, to be fair to him, did not seriously contest the application for condonation of delay.
5. Owing to the Supreme Court, vide orders dated 23rd March, 2020 and 8th Match, 2021 in SMW(C) No. 3/2020 titled In Re: Cognizance for Extension of Limitation having suspended the period of limitation, CM No.11906/2021 for condonation of delay, though superfluous, is allowed and the appeal considered on merits.
6. CM No.11906/2021 is disposed of.
7. The respondent no.1 filed OMP (ENF.) (COMM.) No.140/2019 for execution of the arbitral award dated 11th March, 2019 as a decree of the Court, describing itself as the decree holder and the two appellants and the respondent no.2 as the judgment debtors, and pleading that a total amount of Rs.21,17,80,487/- was due as on 11th July, 2019, jointly and severally from the two appellants and the respondent no.2 [hereinafter together referred to as “judgment debtors”] to the respondent no.1 [hereinafter referred to as “decree holder”] under the award dated 11th March, 2019. In paragraph 10 of the Execution Petition [filed in the form prescribed in the Code of Civil Procedure, 1908 (CPC)], requiring the decree holder to state “In what manner court’s assistance is sought”, the decree holder pleaded, “By issuance of attachment warrant the Hon’ble court may be pleased to attach the movable and immovable properties of the judgment debtors in view of Order XXI of the CPC”. In paragraph 11 of the Execution Petition, requiring the decree holder to furnish “Any other information”, the decree holder pleaded, that (i) the judgment debtors had failed to make payment of the awarded amount to the decree holder; (ii) the decree was to be executed jointly and severally against the judgment debtors; and, (iii) “To the best of the knowledge of the decree holder, the judgment debtors have assets and properties, movable and immovable”. The decree holder, in the prayer paragraph of the Execution Petition, sought (a) a direction to the judgment debtors to pay to the decree holder the awarded amount with interest, in terms of the arbitral award dated 11th March, 2019; (b) to restrain the judgment d
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Jolly George Varghese Vs. The Bank of Cochin (1980) 2 SCC 360
Nain Singh Vs. Koonwarjee (1970) 1 SCC 732
Kunwar Pal Singh Vs. State of U.P. (2007) 5 SCC 85
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