The default of judgment-debtors in complying with court orders justified the release of the deposited amounts to the decree-holders.

JUDGMENT

Anup Jairam Bhambhani J.

I.A No.11507/2022 in O.M.P.(I)(COMM.) No. 399/2018 EX.APPL. (OS) No. 2906/2022 in OMP (ENF.) (COMM.) No. 159/2019

1. By way of the present judgment, this court proposes to dispose-of applications bearing I.A. No.11507/2022 filed in O.M.P. (I) (COMM.) No.399/2018 and EX.APPL. (OS) No.2906/2022 filed in OMP (ENF.) (COMM.) No.159/2019 by M/s Landmark Property Development and Company Limited & Ors. (`decree holders') seeking release of the sums of Rs.13 crores and Rs.3,09,42,000/- respectively, that have been deposited by M/s Ansal Properties & Infrastructure Limited & Ors (`judgment debtors') in compliance of order/judgment dated 29.05.2019 and 05.01.2022, as detailed hereinafter.

2. This court has heard Mr. Amit Sibal, learned senior counsel appearing on behalf of the decree-holders; and Mr. Ashwani Kumar Mata, learned senior counsel appearing on behalf of the judgement-debtors on the present applications.

Submissions on behalf of Decree-Holders

3. The decree-holders seek release of the deposited amounts for the following reasons:

3.1. It is submitted that calculating the awarded amount as due upto 12.05.2023, as per the arbitral award, the judgement-debtors are liable to pay to the decree-holders the sum of about Rs.278 crores; which however has not been done and only small sums have been deposited by the judgement-debtors in court pursuant to orders made by this court;

3.2. It is submitted that the petition under section 9 of the A&C Act was filed to protect the awarded amount; and pursuant to order dated 25.04.2019 made in the matter, the enforcement of the arbitral award was stayed till 31.07.2019 based on the undertaking given by the judgement-debtors that they would deposit a sum of about Rs.46 crores in court, which the judgement-debtors have failed to do;

3.3. It is further submitted that the judgement-debtors are also in contempt of court orders, having violated order dated 29.05.2019 since, it is verily believed, that the judgement-debtors have sold certain immovable properties in Meerut without depositing the sale proceeds thereof in this court immediately thereafter, as directed by that order. It is submitted that separate contempt proceedings have been initiated in that respect;

3.4. It is argued that the decree-holders have suffered huge losses due to non-payment of the awarded amount by the judgement-debtors, and therefore are entitled to immediate release of the amount of Rs.13 crores and Rs.3,09,42,000/-, which now stand deposited by the judgement-debtors in court.

Submissions on behalf of Judgement-Debtors

4. Learned senior counsel appearing for the judgement-debtors, on the other hand, opposes the release of the deposited amount to the decree-holders, principally for the following reasons:

4.1. It is argued that the amount of Rs.13 crores deposited by the judgment-debtors in court is subject to the outcome of OMP (COMM) No. 68/2019; and in seeking release of the amount deposited, the decree-holders are in fact seeking partial execution of the arbitral award which is still under challenge as well as enforcement of judgement dated 05.01.2022, which ought not to be allowed;

4.2. It is submitted that previously, the decree-holders had sought release of a sum of about Rs.14 crores deposited by the judgement-debtors in court; and under guise of a settlement, the decree-holders had received the monies so deposited by way of a joint application bearing E.A No. 28/2021 in OMP. ENF (COMM) No. 159/2019. After receiving that sum of money however, it is submitted, the decree-holders immediately backed-out of the settlement; and an application bearing E.A. No. 469/2021 has been filed by the judgement-debtors seeking re-deposit of the sum in court and that application is still pending consideration before this court. It is accordingly urged, that any further release of money in favour of the decree-holders ought to be done only after that application is taken-up, so as to protect the i