JUDGMENT :

I.A. No. 13234/2022

1. An application under Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as “CPC”) has been filed on behalf of the petitioner seeking to withdraw the amount of Rs. 10,04,69,328/- deposited in the Court and to substitute it with a Bank Guarantee.

2. It is submitted in the application that Objection under Section 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as “A&C Act, 1996”) against the impugned Award dated 01.08.2020 in respect of Claim nos. 1, 2, 3 & 6, has been filed by the petitioner.

3. This Court vide order dated 07.12.2020 stayed the operation of the impugned Award subject to the deposit of the awarded amount along with up to date interest, within eight weeks. Pursuant thereto, an application was filed by the petitioner seeking permission to deposit Bank Guarantee in lieu of the awarded amount, but this Court vide order dated 08.02.2021, re-affirmed and directed the petitioner to deposit the awarded amount along with up to date interest and declined the request of the petitioner. Accordingly, the petitioner in compliance, deposited the sum of Rs. 10,04,69,328/- vide a Demand Draft bearing No.705877 dated 20.02.2021.

4. On the application of the respondent requesting for release of this money as it was required to be deposited with Chennai International Airport for replenishing the security deposit, vide order dated 08.03.2021 the Registry was directed to release the amount of Rs. 9,68,48,000/- to the respondent subject to furnishing of a Bank Guarantee in the name of Registrar General of this Court with a direction that the amount be deposited with Chennai International Airport for replenishing the security deposit as had been submitted by the respondent. However, despite the completion of more than one year from the date of Order i.e. 08.02.2021, the respondent has neither withdrawn the amount nor furnished the bank guarantee. The respondent despite getting an order for withdrawal of the amount has been unable to furnish the Bank Guarantee and the amount has continued to remain deposited. In the circumstances, it is evident that respondent does not require the said amount. The liquid money is simply lying idle in the Bank, is of no use. On the other hand, the petitioner can put the said amount to immediate use.

5. It is asserted that the purpose of depositing the amount is to ensure that in case the petition under Section 34 of the A&C Act, 1996 is dismissed, the interest on the awarded amount payable to the respondent is secured.

6. The respondent despite getting an order for withdrawal of the amount was unable to furnish the bank guarantee and the amount has continued to remain deposited.

7. It is submitted that the petitioner is a Government entity involved in Public Utility Services and would be able to utilize the amount. Hence, a prayer is made that the petitioner may be permitted to withdraw the amount in lieu of a bank guarantee.

8. Submissions heard.

9. As has been indicated in the application, the respondent was allowed to withdraw the awarded amount along with up to date interest subject to the condition of furnishing the bank guarantee, which has not been complied with. On the other hand, the petitioner seeks release of the amount subject to deposit of a Bank Guarantee.

10. Similar situation that had arisen in another Arbitration Petition being Arb. P. 06/2021, in the matter of Airport Authority of India and another Vs M/s Graphisads Private Limited before the Hon'ble High Court of Jammu & Kashmir, the review was allowed for release of money.

11. Recently, this Court in O.M.P. COMM. No. 345/2019 titled as Airports Authority of India Vs. M/s Pradeep Hotel, in similar circumstances, the court granted stay of an Award subject to the petitioner depositing the awarded amount along with up to date interest vide order dated 01.04.2021. However, considering the application of the petitioner claiming financial difficulties, the court modified the