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2022 Supreme(Telangana) 124

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. NAVEEN RAO, G. RADHA RANI, JJ.
M/s. M.S.R. Enterprises - Petitioner
Versus
M/s. Pooja Enterprises & Others - Respondents
Civil Revision Petition No. 1571 of 2021
Decided On : 28-04-2022

Advocates Appeared:
For the Petitioner: Smt. Manjari Ganu, Sri Sunil B. Ganu, Learned Counsels.
For the Respondents: Sri A. Sudarshan Reddy, learned senior counsel, Sri A. Prabhakar Rao, Learned Counsels, Sri R. Vinod Reddy, Learned Standing Counsel.

Point of Law : Provision in Order XXVII Rule 8-A of CPC the State need not be compelled to pre-deposit as a condition precedent to avail the remedy of appeal/application and, therefore, order of attachment was illegal.

Headnote:

Code of Civil Procedure, 1908 - Section 151 - Order XXI Rule 46-A read with Section 151 - Execution of erection - Power to issue garnishee order and grossly erred in issuing garnishee order - Forged and fabricated Award - Execution of Award - Provision in Order XXVII Rule 8-A of CPC the State need not be compelled to pre-deposit as a condition precedent to avail the remedy of appeal/application and, therefore, order of attachment was illegal. (Para 17)

Finding of the Court :

If the terms of award are not complied, the party in whose favour award was passed can seek its enforcement under Section 36. If no application is made under Section 34 within the prescribed period of limitation or the Section 34 application is rejected or no stay is granted by the Court in a petition challenging the validity of the award, the award is enforceable in terms of Section 36 - Scheme of the Act and the Rules make it apparent that the Act is self-contained Code; that they comprehensively deal with all aspects of arbitration; that the Act and the Rules do not envisage application of whole gamut of CPC; that CPC is applicable only to a limited extent as provided in Rule 12 of the Rules; that CPC can only guide the Court in dealing with applications with complete discretion to adopt its own procedure; and that at the stage of enforcement of award of Arbitrator, the Court cannot go into merits of the claims and should only deal with enforcement of award, treating the finality of the award as such.

Result : Appeal dismissed.

ORDER :

P. Naveen Rao, J.

The facts on record disclose that the petitioner is a Partnership Firm involved in execution of Sub-Stations, fixing of electricity consumption meters etc. It appears, in the year, 2015 it was awarded contract to erect five 33/11 KV Sub-stations at various locations and other works concerning electricity supply by the Southern Power Distribution Company Limited. The petitioner and the first respondent entered into sub-contract on 22.04.2017 for execution of erection of 33/11 KV Sub-stations, construction of KV lines, 11 KV & LT Lines for distribution, transformers and extension of supply to BPL Households etc. According to first respondent, the entire work was executed as agreed upon by 20.03.2020 and raised bills and requested the petitioner several times to settle his bills. But, the petitioner dodged from complying with the agreement.

2. To resolve the dispute, the parties requested their elders to arbitrate on the dispute. As part of the settlement arrived at between the parties before the Arbitrators, the petitioner agreed to pay Rs. 2.65 crores and the first respondent agreed to confine his claim to said amount as full and final settlement. Accordingly, an award was passed on 15.09.2020.

3. In spite of settlement of dispute and agreement on amount payable to the first respondent, the amount was not settled. Hence, the first respondent filed E.P.No.213 of 2021 on the file of VII Additional District Judge, Warangal, for execution of the award.

4. In the said E.P., first respondent filed E.A.No.115 of 2021 under Order XXI Rule 46-A read with Section 151 of Code of Civil Procedure, 1908 (CPC), to direct garnishees, respondents 2 to 5, to withhold the award amount of Rs.2,65,00,400/- by not disbursing the same to the petitioner. By order dated 30.06.2021, the Court below allowed the petition and directed the respondents 2 to 5 to withhold an amount of Rs.2,65,00,400/- and credit the amount to the account of the E.P. Aggrieved thereby, this revision is filed.

5. Heard Smt. Manjari S. Ganu, learned counsel appearing for Sri Sunil B. Ganu learned counsel for petitioner and Sri A. Sudarshan Reddy learned senior counsel appearing for Sri A. Prabhakar Rao, for respondent no.1, and Sri R. Vinod Reddy learned standing counsel for TS TRANSCO for respondents 2 to 5.

6.1. Learned counsel Smt. Manjari S Ganu contended that the Court below has no power to issue garnishee order and grossly erred in issuing garnishee order.

6.2. According to the learned counsel, the award is forged and fabricated and, therefore, not binding on the petitioner. She would submit that the petitioner has serious objection on the manner in which the award was passed. Therefore, the petitioner filed application to set aside the award on the ground of fraud. In an application seeking to enforce an award, the Execution Court is bound by the provisions of the CPC. As required by Section 47 of CPC, the Execution Court ought to have decided in the first instance validity of the award before seeking its enforcement. The Execution Court grossly erred in passing garnishee order without first deciding the objections filed, as required by Section 47 of CPC.

6.3. She would further submit that as the decree-holder and followers manhandled and threatened the petitioner on many occasions, petitioner filed private complaint before the Court and the same was referred to Subedari Police Station and registered as Crime No.359 of 2021. Petitioner also filed another complaint bearing Crime No.388 of 2020 in Hanamkonda Police Station. No action is taken on the complaints filed by him.

6.4. She would further submit that in fact, petitioner never went back on making payments, but what is claimed by the decree-holder is exorbitant and, therefore, petitioner has been asking to furnish true accounts and actual works executed by the decree-holder, whereas no such information is furnished.

6.5. She would further submit that if the garnishee order is implemented, it would be di

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