IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 9590 of 2023 FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE J. C. DOSHI ==========================================================

1	Whether Reporters of Local Papers may be allowed to see the judgment ?	Yes
2	To be referred to the Reporter or not ?	Yes
3	Whether their Lordships wish to see the fair copy of the judgment ?	No
4	Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ?	No

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SHAPOORJI PALLONJI AND CO. PVT. LTD.

Versus GUJARAT STATE ELECTRICITY CORPORATION LTD.

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Appearance:

MR MIHIR THAKORE, SR. ADVOCATE with MR AJAY R MEHTA(453)

with MR ANMOL MEHTA for the Petitioner(s) No. 1 MR KAMAL B TRIVEDI, SR. ADVOCATE with G H VIRK(7392) for the Respondent(s) No. 1 MR SIMRANJITSINGH H VIRK(11607) for the Respondent(s)

No.1 ==========================================================

CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE J. C. DOSHI Date : 01/07/2023 ORAL JUDGMENT (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA)

What is prayed in this Special Civil Application is to modify the order dated 02.01.2023 passed by the Additional District Judge, Bhavnagar - Commercial Court, by directing the respondent herein to deposit 100% of the amount awarded by the Arbitral Tribunal as per its award dated 20.03.2020. It is prayed to require the respondent to deposit both, principal amount as well as interest and cost.

2. The aforementioned order dated 02.01.2023, below exhibit 5, came to be passed under section 36 of the Arbitration and Conciliation Act, 1996. Thereby, the respondent prayed to stay the operation and implementation of the arbitral award. The proceedings of section 34 of the Act are pending.

2.1 The operative part of the said order, prayed to be modified, is as under, "1. The Operation and Implementation of Arbitral Award (with all the amendments), dated 20/3/2020 (in the matter of M/s Shapoorji Pallonji & Company v. M/s Guajarat State Electricity Corporation Ltd. before Arbitrators), is hereby stayed on the condition that Appellant deposits in the court 50% amount awarded as per para 519 (page 174 to 175-total amount being on page 175) of the Original award of arbitration, dated 20- 03-2020, within 8 (eight) weeks from the-date of this order and also presents Corporate Bank Guarantee of another half amount (50%) of Awarded amount in the court, as mentioned in para 519, within 8 weeks from the date of this order.

2. Nazir is hereby ordered to invest the said amount deposited, in any nationalized bank.

3. The respondent will be free to withdraw any portion of the said amount deposited in the court, which is deemed proper by the court, with the permission of the court. That any application for withdrawal to be preferred in this regard by Respondent may be preferred, but the said application shall be preferred two months after deposit of said amount in court.

4. Until Appellant/applicant deposits the abovesald amount in court and presents in this case Corporate Bank Guarantee within the time specified above, the Operation and implementation of above mentioned Arbitral Award shall stand stayed."

2.2 Paragraph 519 of the Award mentioned in the aforesaid operative portion, related to the principal amount awarded by the Arbitral Tribunal. In the award, interest awarded as per paragraph 523 and the cost part was also subsequently dealt with by the Arbitral Tribunal.

2.3 The grievance of the present petitioner centers around the aspect that the Commercial Court below directed deposit of the principal amount only, while granting stay of the arbitral award.

3. The facts to be noted in brief are that respondent Gujarat State Electricity Corporation Ltd. invited bids on 15.03.2010 for the purpose of construction

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