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2022 Supreme(Del) 282

IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjeev Narula, J.
Continental Engineering Corporation - Appellant
Versus
Sugesan Transport Pvt. Ltd. - Respondent
OMP (Enf.) (Comm.) 38/2021, Ex.Appl.(OS) 981/2021, Ex.Appl.(Os) 1034/2021 And Ex.Appl.(OS) 1367/2021
Decided On : 10-01-2022

Advocates Appeared:
Mr. Anil Kher, Senior Advocate, Mr. Kunal Kher and Mr. Sandeep Thukral, Advocates, for the Appellant, Mr. Udian Sharma and Mr. Jaitegan Singh Khurana, Advocates, for the Respondent.

The execution of an arbitral award can be filed anywhere in the country where such decree can be executed, and there is no requirement for obtaining a transfer of the decree from the court which would have jurisdiction over the arbitral proceedings.

Headnote:

Arbitration and Conciliation Act - Enforcement of Arbitral Award - Section 36 - Order XXI Rule 10 - Form 16A, Appendix E of the Code of Civil Procedure, 1908

Fact of the Case:

The petition was filed seeking enforcement and execution of an arbitral award against the Judgment Debtor. The Court analyzed the jurisdiction issue, the disclosure of assets by the Judgment Debtor, and the applicability of relevant provisions for grant of execution of a money decree.

Finding of the Court:

The Court found that the Judgment Debtor does not have any assets in Delhi and lacks territorial jurisdiction to entertain the petition. It directed the Judgment Debtor to file an affidavit disclosing its assets and dismissed the petition with liberty to the Decree Holder to approach the executing court of competent jurisdiction.

Issues: Jurisdiction issue, disclosure of assets by the Judgment Debtor, applicability of relevant provisions for grant of execution of a money decree.

Ratio Decidendi: The execution of an arbitral award can be filed anywhere in the country where such decree can be executed, and there is no requirement for obtaining a transfer of the decree from the court which would have jurisdiction over the arbitral proceedings.

Final Decision: The petition was dismissed with liberty to the Decree Holder to approach the executing court of competent jurisdiction. The Judgment Debtor was directed to file an affidavit disclosing its assets within a specified period.

ORDER

1. The present petition has been filed under Section 36 of the Arbitration and Conciliation Act, 1996 [hereinafter referred to as the Act] read with Order XXI Rule 10 seeking enforcement and execution of the arbitral award dated 22nd October 2020 against the Judgment Debtor, seeking inter-alia the following relief:

    "b) Issue against the Judgment Debtor, warrants of attachment of its movable and immovable assets/properties, investments, bank accounts, fixed deposits and to order for sale of the said immovable and movable assets/properties, investments, bank accounts, fixed deposits, for the purposes of realizing the awarded amount".

    2. In the present proceedings, initially, this Court vide Order dated 22nd February, 2021, directed the Judgment Debtor to file an affidavit in the format given in Annexure B-1 to the judgment dated 5th August, 2020 titled M/s Bhandari Engineers and Builders Private Limited v. Maharia Raj Joint Venture, MANU/DE/1497/2020, 2019 SCC OnLine Del 11879. [hereinafter, Bhandari Engineers'] along with all the necessary documents. The said direction was further reiterated by this Court on 25th February, 2021 and again on 18th May, 2021.

    3. Subsequently, Bhandari Engineers was overruled by the Division Bench in Delhi Chemicals and Pharmaceutical Works Pvt. Ltd. v. Himgiri Realtors Pvt. Ltd., 2021 SCC OnLine Del 3603. However, in the meantime, the Judgment Debtor had indeed filed an affidavit dated 10th August 2021 in the format prescribed in Bhandari Engineers.

    4. Mr. Udian Sharma, states that he has instructions to say that the Judgment Debtor does not have any assets in Delhi, and its only assets are in Tamil Nadu. He further states that the present proceedings do not lie in this court as the court lacks territorial jurisdiction. In this light, he has filed an application [EX APPL.(OS) 981/2021] seeking rejection of the petition.

    5. Mr. Anil Kher, senior counsel for the Decree Holder, on the other hand, points out that in the above referred affidavit, columns numbered 56 to 64 are blank and the Judgement Debtor should be directed to furnish the said information. On the objection raised by Mr. Sharma regrading the court lacking jurisdiction to entertain the present petition, Mr. Kher's primary submission is that the disclosure of assets by Judgment Debtor is necessary in order for the Decree Holder to ascertain the court of competent jurisdiction. He points out that no particulars of bank accounts have been given. The Judgment Debtor has not complied with the details as are required to be disclosed in Form 16A. Therefore, he prays that the Judgment Debtor should first be directed to furnish the said particulars by way filing a fresh affidavit.

    6. However, in the opinion of the Court, Decree Holder cannot ask for disclosure in terms of the format prescribed under Bhandari Engineers as the said judgment, today, stands overruled. All that the Court can direct is to call upon the Judgment Debtor to disclose its list of assets as prescribed under Form 16A, Appendix E of the Code of Civil Procedure, 1908

    7. Now that the affidavit dated 10th August 2021 disclosing assets of the Judgment Debtor is on record, the Court has perused the same to examine if the requisite information has been given. Bank account particulars have been shown in column number 22, as 'Corporation Bank', where the account of the Judgment Debtor is stated to have become NPA on 31st March, 2017. Although the branch is not mentioned, counsel for the Judgment Debtor clarifies to the court that it is the Asset Recovery Management Branch located in Chennai.

    8. Section 36 of the Arbitration and Conciliation Act, 1996 stipulates that the award shall be enforced under the Code of Civil Procedure, 1908 in the same manner as if it were a decree of the Court. In the instant case, the relevant provisions for grant of execution of a money decree would apply. Order XXI, Rule 30 of the Civil Procedure Code 1908, provides that "Every decree for the payment of mon

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