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2022 Supreme(Sikk) 72

HIGH COURT OF SIKKIM
Meenakshi Madan Rai, Bhaskar Raj Pradhan, JJ.
Sikkim Power Development Corporation & Anr. - Appellants
Versus
Amalgamated Transpower (India) Ltd. - Respondent
Review Pet.(C) No. 01 of 2022
Decided On : 28-07-2022

Advocates appeared:
Mr. Tarun Johri, Advocate with Ms. Tamannna Chettri and Mr. Tenzing Thinlay Lepcha, Advocates, for the Petitioners; Mr. Prateek K. Chadha, Advocate with Ms. Rachana Rai, Advocate, for the Respondent

The court affirmed its jurisdiction to review its orders while highlighting that a mere filing of a review petition does not grant a stay on award enforcement unless complying with statutory requirements.

Headnote:(A) Code of Civil Procedure, 1908 - Order XLVII Rule 1 - Arbitration and Conciliation Act, 1996 - Section 34 and Section 36 - Review petition filed challenging order that directed deposit pending appeal against an arbitral award - Petitioners asserted that the order contained an error apparent on the face of the record due to the Respondent not pressing for execution of part of the award. (Paras 1, 5-10)

(B) High Court's jurisdiction - The court reiterated that it possesses inherent powers to recall its own orders as courts of record under Article 215 of the Constitution. (Paras 9-10)

Facts of the case:
The Appellants defaulted in depositing substantial amounts as ordered by the court while appealing against the arbitral award favoring the Respondent. The Respondent argued that the Review petition attempted to evade payment obligations.

Findings of Court:
The court concluded that no manifest error existed in the previous order as it aligned with statutory provisions and well-established precedent.

Issues: Whether the review petition identified an error apparent on the face of the record and the jurisdictional correctness of directives related to deposit amounts.

Ratio Decidendi: The court held that the Petitioners could not seek review as the original order was not flawed and served the purpose of ensuring compliance with the award under statutory mandates.

Result: Review Petition dismissed with costs of Rs.20,000/- imposed on Petitioners.

Table of Content
1. (Para 1 , 2 , 3 , 4 , 5 , 6 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)

JUDGMENT

Meenakshi Madan Rai, J. - The Petitioners/Appellants have filed an application under Order XLVII Rule 1 of the Code of Civil Procedure, 1908 (for short, the 'CPC'), dated 01-02-2022, seeking a review of the Order dated 07-10-2021 passed in I.A. No.1 of 2020 in Arb.A. No.1 of 2020, on grounds that the Order suffers from an error apparent on the face of it.

2(i). For clarity in the matter, it is essential to recapitulate that the Petitioners/Appellants under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, the 'Arbitration Act') had challenged the Award dated 30-09-2017 of the sole Arbitrator before the Learned Commercial Court, East Sikkim, at Gangtok, in Arbitration Case No.05 of 2017 [Sikkim Power Development Corporation Ltd. (SPDCL) and Another v. Amalgamated Transpower (India) Ltd. (ATPIL)]. The Arbitral Tribunal had allowed the claim filed by the Respondent and dismissed the counter-claims filed by the Petitioners/Appellants. A decree of specific performance of the Agreement dated 21-12-2002 was passed in favour of the Respondent with damages against the Appellants. The Learned Commercial Court, East Sikkim, at Gangtok, partly upheld the Arbitral Award dated 30-09-2017 vide its impugned Order dated 26-12-2019. An Appeal being Arb.A. No.01 of 2020 against the finding of the Learned Commercial Court was filed by the Petitioners herein.

(ii) Notice was issued on 22-06-2020 to the Respondent on I.A. No.01 of 2020 supra the application filed by the Appellants seeking a Stay of the impugned Judgment of the Learned Commercial Court. In the interregnum, the Learned Single Judge of this Court granted ex parte ad interim stay of the impugned Judgment until further orders.

(iii) After hearing the rival submissions of Learned Counsel for the parties, the ex parte ad interim order of stay was confirmed vide Order dated 07-10-2021. The directions of this Court in the said Order were inter alia as follows;

'8.(i) In view of the rival contentions put forth, we are of the considered opinion that Learned Counsel for the Appellants has made out a case for grant of Stay of the operation of the Arbitral Award till further orders of this Court.

(ii) Consequently, the ex parte ad interim Order of Stay granted by this Court vide Order, dated 22.06.2020, stands confirmed until further orders.

(iii) However, considering the submissions of Learned Counsel for the Respondent as reflected supra, whereby his specific prayer is for deposit of the amounts as granted in Prayer 'G' and Prayer 'I', the Appellants are directed to deposit two Bank Drafts, one for a sum of Rs.85,43,11,904/- (Rupees eighty five crores, forty three lakhs, eleven thousand, nine hundred and four) only, (i.e. Rs.47,13,53,405/- + Rs.38,29,58,499/-) and another for a sum of Rs.265,10,00,000/- (Rupees two hundred and sixty five crores and ten lakhs) only, within sixteen weeks from today.

.............................................................................'

3. The Appellants filed the instant Review Petition on 01- 02-2022 as stated supra seeking a review of the Order dated 07- 10-2021, along with I.A. No.01 of 2022 an application under Section 5 of the LIMITATION ACT , 1963, seeking condonation of 76 days delay in filing the Review Petition, while placing reliance on the Order of the Hon'ble Supreme Court dated 10-01-2022 in In Re : Cognizance for Extension of Limitation [Miscellaneous Application No.21 of 2022 in Miscellaneous Application No.665 of 2021 in Suo Motu Writ Petition (C) No.03 of 2020]. Contesting the aforementioned delay, the Respondent on 21-02-2022 filed I.A. No.05 of 2022 in Arb.A. No.01 of 2020 and averred inter alia as follows therein;

'18. That, in addition to the Review Petition, the Appellants have also filed an Application of Condonation of delay of 76 days (i.e. from 06.11.2021 to 20.01.2020) sighting (sic) Hon'ble Supreme Court of India's suo-m

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