IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH EFA-7-2023 (O&M)

Reserved on: 04.12.2024 Pronounced on: 07.01.2025 M/S SHERPUR RICE MILLS . . . .APPELLANT Vs.

PUNGRAIN AND OTHERS . . . . RESPONDENTS CORAM: HON’BLE MR. JUSTICE DEEPAK GUPTA Present:- Mr. Aalok Jagga, and Mr. Karan Inder Singh, Advocates, for the appellant/ judgment-debtor N: 2 (JD N: 2)

Ms. Deepali Puri, Advocate, for respondent No.1/ decree-holder (DH)

Mr. Vikrant Bhardwaj and Mr. Aakash Singla, Advocates for respondent No.2/ judgment-debtor N: 1 (JD N: 1)

Mr. Swaran Singh Tiwana and Mr. Vishal Aggarwal, Advocates, for respondent No.3/ auction-purchaser (AP)

DEEPAK GUPTA, J.

Present appeal has been preferred by the appellant, who is one of the Judgment debtor, against the order dated 05.09.2023, passed by the Executing Court of Ld. Additional District Judge, Sangrur in Execution Petition No.205 of 2018 [CNR N: PBSG01-003091-2018] titled as ‘PUNGRAIN Vs. M/s Noor Agro Industries and another’, whereby objections filed by the appellant-JD under Order XXI Rule 90 CPC have been dismissed; and the Execution Petition has been disposed of by confirming the sale in favour of the auction purchaser-

respondent No.3.

2.1 Facts of the case, in brief, are that JD N: 2 (appellant herein) is a partnership firm operating under the name of M/s Sherpur Rice Mills situated at Village Sherpur, Tehsil Dhuri, District Sangrur. On 19.10.2015, said appellant had entered into a lease agreement with JD N: 1 M/s Noor Agro Industries (respondent No.2 herein), whereby the said rice mill was leased to M/s Noor Agro Industries, a proprietorship firm through its proprietor-Jiwan Kumar. On 23.10.2015, decree holder - Punjab State Grains Procurement Corporation Ltd. (‘PUNGRAIN’) [respondent No.1 herein] and respondent No.2-M/s Noor Agro Industries-JD No.1 executed a Custom Milling Agreement for the crop year 2015-16. Respondent No.2 was required to deliver the milled rice in time and to clear all the outstanding dues, if any, towards any agency or Government and also be liable for any default. The appellant-JD No.2 furnished surety bond and affidavit to that effect. The agreement between DH & JD N: 1 i.e., respondent No.1 and 2 carried an arbitration clause. There was default on the part of JD N: 1 - respondent No.2 on account of shortage of paddy, due to which complaints were lodged against respondent No.2 for misappropriation of the paddy by respondent No.1 - DH.

2.2 On account of the said default, Rice Mill, Sherpur of the appellant – JD N: 2 was sealed by respondent No.1 - DH and was held to be not entitled for new allotment of paddy due to non-clearance of the dues of DH-respondent No.1. According to the appellant, aggrieved by the said order of the respondent No.1, appellant filed Civil Suit No.595 of 2016 before Ld. Civil Judge (Jr. Div.) Sangrur seeking declaration & permanent injunction that it was entitled to allotment of paddy for the crop year 2016-17 along with the prayer for opening the seal and handing over the vacant possession of the premises.

2.3 As disputes arose between DH & JD N: 1, so on account of the arbitration clause in the custom milling agreement, DH invoked the said arbitration clause and the matter was referred for arbitration. Arbitration award dated 09.01.2018 was made against the JD N: 1 & JD N: 2, as per which, an amount of ₹55,78,102/- was awarded in favour of respondent No.1 - DH along with future interest @ 12% per annum till its realization. The objections filed by the appellant - JD N: 2 under Section 34 of the Arbitration and Conciliation Act, 1996 against the said award filed before District and Sessions Judge, Chandigarh are stated to be still pending. In the meantime, respondent No.1/DH preferred execution bearing Execution Petition No.205 of 2018 before Additional District Judge, Sangrur under Order XXI Rule 11 CPC for implementation of the award dated 09.01.2018.

2.4 Upon notice to the JDs, JD No.1-M/s Noor Agro Industries put in appearance through its cou