2022 Supreme(Online)(Bom) 3294
HIGH COURT OF BOMBAY
HON'BLE SHRI JUSTICE B.P. COLABAWALLA
M/S ANGERLEHNER STRUCTURAL AND CIVIL ENGINEERING COMPANY – Appellant
Versus
MUNICIPAL CORPORATION OF GREATER MUMBAI – Respondent
COMEX/54/2016
2022:BHC-OS:4565 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMMERCIAL EXECUTION APPLICATION NO.54 OF 2016 M/s Angerlehner Structural and Civil Engineering Company ..Applicant Vs.
Municipal Corporation of Greater Bombay ..Respondent Mr. Firoz Andhyarujina, Senior Counsel a/w Mr. Javed Gaya, Manek Andhyarujina, Vidya Chaudhari, Mona Malvade i/b Chamber of Javed Gaya, for the Applicant.
Mr. A. Y. Sakhare, Senior Counsel a/w Jitendra Mishra, Pooja Yadav, for MCGM.
CORAM:- B. P. COLABAWALLA, J.
Reserved on :- May 4, 2022. Pronounced on :- June 7, 2022.
P. C.:
1. The above Execution Application is filed for executing the Arbitral Award dated 23rd June 2014 passed in favour of the Applicant and against the Municipal Corporation of Greater Mumbai (for short the (cid:210)MCGM(cid:211)).
2. The MCGM was aggrieved by the Award passed by the Arbitral Tribunal, and therefore challenged the same before this Court under Section 34 of the Arbitration and Conciliation Act, 1996 (for short (cid:210)the Arbitration Act(cid:211)). However, the said challenge was repelled by a learned single judge of this Court vide his order dated 27th February 2019. Even an Appeal filed under Section 37 of the Arbitration Act before the Division Bench of this Court was dismissed on 8th September 2021. The order of the Division Bench was thereafter challenged before the Hon(cid:213)ble Supreme Court by filing an SLP which was also dismissed on 22nd November 2021. The Hon(cid:213)ble Supreme Court granted time to the MCGM up to 31st March 2022, to make payment to the Applicant.
3. In light of the above factual position, this Execution Application was moved before me on 9th March 2022. On the said date, it was pointed out to the Court that the Applicant, being a foreign entity, does not have a bank account in India (as the contract between the Applicant and the MCGM was concluded in 2003). The Applicant, therefore, requested that payment under the Arbitral Award be made by the MCGM in the name of the Applicant(cid:213)s lawyer and agent who would credit the same into the Applicant(cid:213)s account in escrow for transfer to the Applicant in Austria. The Escrow Agreement dated 3rd February 2022 was produced before the Court on the said date along with a letter dated 29th November 2021 written by the Applicant to the MCGM requesting them to credit the monies due under the Award to their lawyer(cid:213)s account to be held in escrow. A copy of the said Escrow Agreement dated 3rd February 2022 as well as the copy of the letter dated 29th November 2021 addressed by the Applicant to the MCGM were also taken on record and marked (cid:210)X(cid:211) and (cid:210)X-1(cid:211) for identification. On the said date, namely, 9th March 2022, Mr. Sakhare, the learned Senior Counsel appearing on behalf of the MCGM, fairly stated before the Court that the MCGM was willing to credit the monies due under the Arbitral Award to the account of the lawyers of the Applicant. He however submitted that it should be made clear that once these monies are paid, the MCGM is relieved of their liability under the Award and the Applicant would thereafter have no claim whatsoever against the MCGM. In light of the aforesaid submissions, this Court, on 9th March 2022, directed the MCGM to pay the amounts due under the Arbitral Award (dated 23rd June 2014) by crediting Bank Account No.5020035159821 in HDFC Bank Ltd, Nariman Point, Mumbai 400 021, on or before 31st March 2022. It was made clear that once the aforesaid payment was made, the liability of the MCGM under the Award dated 23rd June 2014 would stand satisfied and the Applicant would have no claim whatsoever against the MCGM (in relation to the Arbitral Award dated 23rd June 2014). It was also directed that the costs of Rs.1 Lakh deposited by the MCGM in this Court shall also be credited by the Prothonotary and Senior Master in the aforesaid Bank Account on or before 31st March 2022. Accordingly, the above Execut