JUDGMENT :

N.V.ANJARIA, J.

What is prayed in this Special Civil Application is to modify the order dated 02.01.2023 passed by the Additional District Judge, Bhavnagar - Commercial Court, by directing the respondent herein to deposit 100% of the amount awarded by the Arbitral Tribunal as per its award dated 20.03.2020. It is prayed to require the respondent to deposit both, principal amount as well as interest and cost.

2. The aforementioned order dated 02.01.2023, below exhibit 5, came to be passed under section 36 of the Arbitration and Conciliation Act, 1996. Thereby, the respondent prayed to stay the operation and implementation of the arbitral award. The proceedings of section 34 of the Act are pending.

2.1 The operative part of the said order, prayed to be modified, is as under,

"1. The Operation and Implementation of Arbitral Award (with all the amendments), dated 20/3/2020 (in the matter of M/s Shapoorji Pallonji & Company v. M/s Guajarat State Electricity Corporation Ltd. before Arbitrators), is hereby stayed on the condition that Appellant deposits in the court 50% amount awarded as per para 519 (page 174 to 175-total amount being on page 175) of the Original award of arbitration, dated 20- 03-2020, within 8 (eight) weeks from the-date of this order and also presents Corporate Bank Guarantee of another half amount (50%) of Awarded amount in the court, as mentioned in para 519, within 8 weeks from the date of this order.

2. Nazir is hereby ordered to invest the said amount deposited, in any nationalized bank.

3. The respondent will be free to withdraw any portion of the said amount deposited in the court, which is deemed proper by the court, with the permission of the court. That any application for withdrawal to be preferred in this regard by Respondent may be preferred, but the said application shall be preferred two months after deposit of said amount in court.

4. Until Appellant/applicant deposits the abovesald amount in court and presents in this case Corporate Bank Guarantee within the time specified above, the Operation and implementation of above mentioned Arbitral Award shall stand stayed."

2.2 Paragraph 519 of the Award mentioned in the aforesaid operative portion, related to the principal amount awarded by the Arbitral Tribunal. In the award, interest awarded as per paragraph 523 and the cost part was also subsequently dealt with by the Arbitral Tribunal.

2.3 The grievance of the present petitioner centers around the aspect that the Commercial Court below directed deposit of the principal amount only, while granting stay of the arbitral award.

3. The facts to be noted in brief are that respondent Gujarat State Electricity Corporation Ltd. invited bids on 15.03.2010 for the purpose of construction of Lignite Thermal Power Plan at Padva, Bhavnagar. It was a contract for piling and general civil work to be executed in the project at Gandhinagar. Letter of award was issued on 01.07.2010 for a total sum of Rs.236.41 crores. Over a period of time, the said sum was increased by the respondent Corporation to Rs.449.34 crores. The petitioner stated that the work, as substantially enhanced above, was completed by it on 30.07.2015 and necessary completion certificate was issued by the respondent. As the respondent refused to pay the claims of the petitioner, the disputes arose. The petitioner invoked the arbitration clause in the contract.

3.1 The three member Arbitral Tribunal allowed the majority of claims by passing award dated 20.03.2020. The petitioner was found to be entitled to Rs.249,78,31,286/- with interest at the rate of 12 % from 24.03.2017 till realisation. The Arbitral Tribunal thereafter in exercise of powers under section 33 of the Act, modified the award as per order dated 28.07.2020 at the instance of the respondent. The Tribunal recorded that the petitioner's entitlement would be Rs. 233,73,91,405/-, which was less than what was earlier determined. The award was further modified on 04.08.2020.

3.1.1 The award of