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TMI Blog2021 (11) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... /- towards awarded cost of arbitration proceeding, to the decree holder. However, judgment debtor failed to honour the aforesaid undertaking given before the Hon ble Supreme Court, the decree holder filed the contempt petition, wherein the Hon ble Supreme Court vide order dated 07.02.2020 gave last opportunity to the judgment debtor to make the payment of ₹ 8.81 crores within two weeks in compliance of order dated 13.09.2021. The aforesaid direction of Hon ble Supreme Court relates to the root of the matter i.e. direction to the judgment debtor to pay the amount claimed by the decree holder before NCLT as on the said date i.e. 27.05.2019, as awarded by the Arbitral Tribunal. The spirit of the said direction is to honour the arbitra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petition by the decree holder are that in case Ref No. DAC/ 1600/03-17, titled as M/s IPEX Infrastructure (P) Ltd Versus Hindustan Construction Company Ltd., an arbitration Award dated 08.01.2019 was passed by the learned arbitrator, whereunder decree holder was awarded amount of ₹ 8,35,33,837/- with future interest at the rate of 12% p.a. from the date of award till the date of payment of the awarded amount. The Award in question was challenged by the judgment debtor under Section 34 of the Act, which was dismissed by this Court vide order dated 20.05.2019 [in OMP (COMM) 208/2019]. Thereafter, decree holder issued a statutory notice dated 27.05.2019 to the judgment debtor under the Insolvency and Bankruptcy Code, 2016 demanding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court vide order dated 07.02.2020 holding that prima facie contempt was made by the judgment debtor and last opportunity was granted to make payment within two weeks in compliance of order dated 13.09.2019. 4. Pursuant to order dated 07.02.2020 passed by the Hon ble Supreme Court in the contempt petition, judgment debtor made payment of ₹ 8,81,51,219/- on 19.02.2020 to the decree holder. 5. Pertinently, the grievance raised in the present petition by the decree holder is that the payment towards the arbitral Award was made by the judgment debtor on 19.02.2020 and thereby, judgment debtor was under the obligation to pay interest @12% p.a. on the awarded amount till then, in terms of the Award. However, payment of ₹ 8,81,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntentions raised by learned counsel appearing from both the sides were heard and material placed on record has been carefully perused. 10. It is not disputed that the arbitral tribunal has awarded an amount of ₹ 8,35,33,837/- together with future interest at the rate of 12 percent per annum from 08.01.2019 i.e. the date of the award till date of payment on the awarded amount in favour of decree holder and against the judgment debtor. Filing of petition under Section 34 of the Act by the judgment debtor against the arbitral Award as well as Section 9 of the Insolvency and Bankruptcy Code, 2016 by the decree holder before NCLT is also not disputed. 11. Pertinently, judgment debtor had approached the Hon ble Supreme Court seeking s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Hon ble Supreme Court on 13.09.2019, decree holder preferred a contempt petition [Contempt Petition (C) No. 85/2929 in Writ Petition (C) No. 1974/2919] wherein in Para-4(iii) it has been averred as under:- 4(iii) An Arbitration Award dated 08.01.20;19 was passed by the Learned Sole Arbitrator in case Ref. No. DAC/1600/03-17 titled M/s IPEX Infrastructure (P) Ltd. Versus Hindustan Construction Company Ltd. The Petitioner was awarded an amount of ₹ 8,35,33,837/- (Eight crores thirty-five lakhs thirty-three thousand and eight hundred and thirty-seven rupees) together with future interest at the rate of 12 percent per annum from 08.01.2019 i.e. the date of the award till date of payment on the awarded amount. The amount payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 gave last opportunity to the judgment debtor to make the payment of ₹ 8.81 crores within two weeks in compliance of order dated 13.09.2021. 16. In the considered opinion of this Court, the aforesaid direction of Hon ble Supreme Court relates to the root of the matter i.e. direction to the judgment debtor to pay the amount claimed by the decree holder before NCLT as on the said date i.e. 27.05.2019, as awarded by the Arbitral Tribunal. The spirit of the said direction is to honour the arbitral Award in its true essence. The arbitral Award is very clearly worded that the awarded amount of ₹ 8,35,33,837/- has to be paid together with future interest at the rate of 12 percent per annum from 08.01.2019 i.e. the date of the awar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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