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IN THE HIGH COURT OF DELHI AT NEW DELHI

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EFA(OS) (COMM) 5/2021 & CM APPLs. 12808-12809/2021

MR. SANJEEV JAI NARAIN AEREN & ANR.

..... Appellants

Through: Mr. P. Nagesh, Senior Advocate with

Mr.Praveen K. Sharma and Mr. Sahil

Nagpal, Advocates.

versus

M/S SOMANI WORSTED LIMITED THROUGH ITS

AUTHORISED REPRESENTATIVE & ORS.

..... Respondents

Through: Mr Vivek Kohli, Senior Advocate with

Ms. Pankhuri Jain, Ms. Kanika Saran,

and Ms. Nikita Maheshwari, Advocates.

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Date of Decision: 01^st June, 2021

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

HON'BLE MR. JUSTICE NAVIN CHAWLA

J U D G M E N T

MANMOHAN, J (Oral)

1.

The appeal has been heard by way of video conferencing.

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2.

Present appeal has been filed challenging the order dated 26^th

February, 2021 passed by the learned Single Judge in a contempt petition

being CCP(O) 34/2020 in OMP (Enf.) (Comm.) No.74/2019. Appellant

seeks directions to the executing Court to decide objections and especially

objection with regard to Section 35 of the Indian Stamp Act before

proceeding with the enforcement and contempt petition.

2021:DHC:1774-DB

3.

Learned counsel for the Appellant states that an Arbitral Award dated

28^th

4.

Learned senior counsel for the appellant submits that as the arbitral

award is passed on a plain paper and requisite stamp duty was not paid at the

time of passing of the award, therefore the award cannot be acted upon in

view of the statutory bar contained in Section 35 of the Indian Stamp Act

and thus the enforcement petition is not maintainable until the requisite

stamp duty along with ten times penalty is deposited by the Decree Holder

pursuant to the impounding of the award dated 28

December 2015 was pronounced by the Sole Arbitrator for a sum of

Rs.168,05,56,182/- on plain paper against the Appellant.

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5.

He also emphasises that the learned Single Judge ought to have

appreciated that proceedings before the Executing Court are without

jurisdiction as the executing court gets its foundational jurisdiction from the

decree/award and when the same is invalid the executing court shall not

have the jurisdiction to entertain any such execution or even proceed with

such execution.

December 2015.

6.

However, this Court finds that by the impugned order, the learned

Single Judge has primarily issued notice in contempt petition and directed

appellant to file replies to E.As. Further, the learned Single Judge has

rightly rejected the objection with regard to Section 35 of the Indian Stamp

Act before proceeding with the contempt petition by observing as under:-

2021:DHC:1774-DB

party…..”

7.

Also it is settled law that even orders passed by Court without

jurisdiction have to be complied with and for violation of the same, Courts

can proceed with contempt proceedings. [See: Tayabbhai M. Bagasarwalla

& Anr. Vs. Hind Rubber Industries Pvt. Ltd. & Ors., (1997) 3 SCC 443].

8.

This is more so in the case of a High Court when it is a Court of

record under Article 215 of the Constitution.

9.

Accordingly, the present appeal and applications, being bereft of

merits, are dismissed.

10.

The order be uploaded on the website forthwith. Copy of the order be

also forwarded to the learned counsel through e-mail.

MANMOHAN, J

NAVIN CHAWLA, J

JUNE 1, 2021

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2021:DHC:1774-DB