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DELHI HIGH COURT
SURESH KUMAR KAIT
KLA Const Technologies Pvt. Ltd. – Appellant
Versus
Embassy of Islamic Republic of Afghanistan – Respondent
| Table of Content |
|---|
| 1. details of the arbitration agreement and disputes. (Para 1 , 2 , 3 , 4) |
| 2. discussion of the settlement agreement. (Para 5 , 10 , 11) |
| 3. court observations regarding the settlement terms. (Para 6 , 7 , 8 , 9 , 12) |
| 4. disposal of the petition based on the agreement. (Para 13 , 14) |
1. Present execution petition has been filed under Section 36 of the Arbitration and Conciliation Act read with Order XXI Rule 11(2) of the CPC, 1908 on behalf of decree holder seeking enforcement of the arbitral award dated 26.11.2018.
2. Decree holder - Ashok Kumar, Authorised Representative of KLA Const. Technologies Private Limited company and judgment debtor - The Embassy of Islamic Republic of Afghanistan had entered into a contract for the rehabilitation of building of the judgment debtor/Afghan Embassy in Delhi for a total contract of Rs.3,02,17,066.83 exclusive of taxes.
3. Pertinently, during execution of work, certain disputes arose between the parties, for resolution of which decree holder invoked the arbitration clause in view of the terms and conditions of the work contract, however, judgment debtor did not respond, therefore, decree holder approached the Hon
The court reinforced that settled disputes through a Settlement Agreement should be honored and enforced to prevent ongoing litigation.
The settlement agreement reached between the parties was found to be binding, and the court decreed the suit in terms of the agreement.
The court recognizes and upholds the mutual settlement reached between parties regarding the execution of an arbitral award, directing compliance within a specified timeframe.
Once the decretal amount of an arbitral award is satisfied, there is no further matter for adjudication in enforcement petitions.
Arbitral awards must be honored in full, including accrued interest, and obligations remain until full payment is made, even if part payments have occurred.
Awarded amount has to be paid together with future interest at rate of 12 percent per annum from date of award till date of payment on the awarded amount in favour of decree holder.
Execution of an arbitral award requires compliance with the 90-day limitation under Section 34; execution petitions filed before this period are impermissible.
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