DHARMESH SHARMA, J. (ORAL)

CM APPL. 44714/2024 (Ex.)

1. Allowed, subject to all just exceptions.

2. The application stands disposed of.

CONT.CAS(C) 1218/2024

3. The petitioner company is seeking initiation of contempt proceedings against the respondents under Sections 11 and 12 of the Contempt of Courts Act, 1971 for wilful disobedience of the order dated 02.09.2023 passed in ARB.P. No. 7/2022.

4. None appeared on behalf the respondents, despite sending advance notice.

5. Briefly stated, the case of the petitioner is that being the owner of the property bearing Plot No. 281-282, Kirti Nagar, Jharsa Road, Gurgaon, Haryana, he had leased the same to respondent No. 1 vide registered Lease Deed dated 01.06.2018, for a period of three years commencing from 01.06.2018, reserving monthly rent for different years at enhanced rates. It is his grievance that respondent No.1 was irregular in making payments of the lease rent and that the premises was not vacated by respondent No.1, despite the fact that the Lease Deed expired by efflux of time on 31.05.2021. In the said background, the arbitration clause was invoked and during the arbitration proceedings, the parties reached an amicable settlement and the MoU, Memorandum of Understanding arrived at between the parties was duly recorded by the learned Arbitrator vide order dated 02.09.2023.

6. Learned counsel for the petitioner has urged that pursuant to the undertaking given by the respondent No. 3 under the authority of respondent No. 2, it was undertaken that an adhoc payment of Rs. 50 lacs shall be paid to the petitioner in the form of a Demand Draft on or before 25.09.2023. It is submitted that although vacant physical possession of the tenancy premises has been handed over to the petitioner, the respondents have deliberately avoided to pay Rs. 50,00,000/- to the petitioner. Therefore, alluding to the affidavit of respondent No.2/Mr. Ajay Dahiya dated 04.09.2023, it is urged that the respondents be proceeded against for non-compliance of their undertaking given by them before the learned Arbitral Tribunal.

7. In the opinion of this Court, although, the petitioner prima-facie has a plausible case, the appropriate remedy for the petitioner would be to seek enforcement of the award in terms of Section 31 of the Arbitration and Conciliation Act, 1996, which provides as under:-

“31. Form and contents of arbitral award.—(1) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.

(2) For the purposes of sub-section (1), in arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the reason for any omitted signature is stated.

(3) The arbitral award shall state the reasons upon which it is based, unless-

(a) the parties have agreed that no reasons are to be given, or

(b) the award is an arbitral award on agreed terms under section 30.

(4) The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the award shall be deemed to have been made at that place.

(5) After the arbitral award is made, a signed copy shall be delivered to each party.

(6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award.

(7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made.

[(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on t