IN THE HIGH COURT OF ORISSA, CUTTACK
K.R. Mohapatra, J.
Birat Chandra Dagara - Appellant
Versus
Odisha Manganese & Minerals Limited - Respondent
C.M.P. No. 135 of 2021
Decided On : 30-03-2021
Attachment of Property - Execution of Consent Award - Order XXI Rule 32 C.P.C. - The court held that the direction to sell the materials available in schedule 'A' properties as well as schedule 'B' properties by public auction is not sustainable in the eyes of law and order under Annexure-13 to that effect is set aside.
Fact of the Case:
The Petitioner challenges the order directing the sale of attached properties to execute the decree. The dispute arose from a Joint Venture Agreement (JVA) for setting up a steel plant, leading to an arbitration proceeding and a Consent Award. The executing Court attached the properties and ordered their sale, leading to the current challenge.
Finding of the Court:
The Court found that the direction to sell the attached properties was not sustainable under Order XXI Rule 32 C.P.C. The Court held that the attachment would automatically cease after six months unless the decree was satisfied or an application for sale was made within the six-month period.
Issues: The issues revolved around the executability of the Consent Award, the jurisdiction of the executing Court, and the timing of the application for sale of the attached properties.
Ratio Decidendi: The Court interpreted Order XXI Rule 32 C.P.C., emphasizing that the attachment would automatically cease after six months unless the decree was satisfied or an application for sale was made within the six-month period. The Court also considered the impact of the Cognizance for Extension of Limitation case, holding that the benefit of extension of time did not apply in this case.
Final Decision: The Court set aside the order directing the sale of the attached properties, finding it not sustainable in the eyes of the law.
JUDGMENT
K.R. Mohapatra, J. - The Petitioner in this CMP calls in question the order dated 5th March, 2021 (Annexure-13) passed by learned District Judge, Mayurbhanj at Baripada in Execution Case No. 1 of 2019, whereby he directed the properties under Schedules 'A' and 'B' kept under attachment to be sold to execute the decree. He further appointed learned Civil Judge (Senior Division), Rairangpur to conduct the sale by putting the attached property in public auction in accordance with law.
2. The averments made in the CMP reveal that the Petitioner (for short 'J.Dr.') is the lessee in respect of Suleipat Iron Ore Mine situated in village Hatisikly under Badampahad Tahasil in the District of Mayurbhanj. In order to set up a steel plant, he executed a Joint Venture Agreement (JVA) with the Opposite Party (for short 'D.Hr.') on 12th April, 2010. On the very same day, a raising contract was also executed between the J.Dr. and D.Hr. permitting later to raise iron ores from the mine as per the terms and conditions stated therein. As per Clause-4.5 of the JVA under Annexure-1, the J.Dr. also executed a registered Power of Attorney in favour of D.Hr. on 12th April, 2010. As the D.Hr. did not set up the steel plant at Rairangpur as agreed upon by the parties, a dispute arose between the J.Dr. and D.Hr. Consequently, the D.Hr. moved this Court in ARBP No. 14 of 2015 under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short 'the Act') for appointment of an Arbitrator. By order dated 7th April, 2016, Hon'ble Justice B.P. Das (Retd.) was appointed as the sole Arbitrator by Hon'ble Chief Justice of this Court. The said order was assailed in SLP (C) Nos.13599, 13803 and 13824 of 2016 before the Hon'ble Supreme Court. While confirming the order for appointment of an Arbitrator, Hon'ble Supreme Court appointed Hon'ble Justice Bikramjit Sen (Retd.) as the sole Arbitrator in place of Justice B.P. Das (Retd.). However, a settlement was arrived at between the parties in the arbitration proceeding and both the parties filed terms of settlement before the Hon'ble Arbitrator on 13th June, 2017. Accordingly, vide order dated 20th January, 2018, Hon'ble Arbitrator disposed of the arbitration proceeding in terms of the said compromise/settlement by passing a Consent Award (Annexure-3). Alleging non-compliance of the terms of settlement, the D.Hr. initiated execution proceeding before learned District Judge, Mayurbhanj at Baripada with a prayer to direct the D.Hr. to perform his part of the obligation under the Consent Award dated 20th January, 2018 and for attachment of 'A' and 'B' schedule properties of the execution petition and also for detention of the J.Dr. in civil prison, which was registered as Execution Case No.1 of 2019. On 7th February, 2019, learned executing Court passed an order restraining the J.Dr. from operating the mine in any manner. However, on the application of the J.Dr., learned executing Court vide its order dated 2nd April, 2019 recalled the restraint order dated 7th February, 2019 subject to deposit of Rs.5.00 crores by the J.Dr. The D.Hr. being dissatisfied with the order dated 2nd April, 2019 filed W.P.(C) No. 7445 of 2019 before this Court. The J.Dr. also filed W.P.(C) No.7537 of 2019 assailing the said order dated 2nd April, 2019 directing him to deposit Rs.5.00 crores. This Court upon hearing learned counsel for the parties set aside the order dated 2nd April, 2019 passed by learned executing court and restored the order dated 7th February, 2019. Assailing the same, the J.Dr. preferred SLP (C) No. 16647 of 2019 before the Hon'ble Supreme Court, which was dismissed vide order dated 2nd August, 2019.
3. Thereafter, the J.Dr. filed an application before the executing court in the tune of a petition under Section 47 C.P.C. questioning the executability of the Consent Award and jurisdiction of learned executing Court to entertain such an application. By order dated 13th September, 2019, learned executing Court
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