Kolkata Metropolitan Development Authority vs Dhoot Developers Pvt Ltd

This is an application under Section 36 (2) of the Arbitration and Conciliation Act, 1996. The petitioner seeks stay of operation of an arbitral award dated 19th February, 2021, as modified on 27th March 2021. By the said awards the Arbitrator has awarded a sum of Rs. 60,52,68,358.42/- along with interest at the rate of 12.75% per annum from the date of the award till complete realization.

Mr. Dutta, submits that the award is liable to be set aside on diverse grounds and primarily on the ground that disputes between the parties were not arbitrable. Mr. Bachawat, Senior Advocate appearing on behalf of the respondent submits that there are no grounds whatsoever which warrant any interference with the award at this stage of the proceedings. The only question which arises for consideration as to on what terms would it be fit to grant stay of the award.

I have considered the submissions of the parties. I am of the view that an amount of Rs. 18,76,54,560/- plus Rs.1,00,00,000/- was admittedly paid by the respondent on account of refund of part consideration as far back as a decade ago. This money has been lying with the petitioner till date. Hence, it would be fit and proper that the petitioner be put on terms and conditions.

Accordingly, the petitioner is directed to deposit a sum of Rs. 30 crores as cash security by furnishing a bank draft or similar instrument with the Registrar, Original Side as a condition for stay of the award dated 19th February, 2021 as modified by the order dated 27th March, 2021.

The Registrar, Original Side is also directed to encash the said bank draft or similar instrument and put the said sum in a fixed deposit account with a nationalized bank having the highest rate of interest to the credit of AP No. 298 of 2021. The petitioner is granted a period of four weeks to provide such cash security upon which the aforesaid award shall remain stayed.

With the aforesaid directions, GA 1 of 2021 in AP 298 of 2021 is disposed of.

AP/298/2021

The Court: This is an application under Section 34 of the Arbitration and Conciliation Act, 1996. The respondent is represented. It is submitted on behalf of the petitioner that all the papers and documents before the learned Arbitrator have been filed in Court. The respondent is granted liberty to file a short supplementary affidavit to include any documents which are not annexed to this petition. Let this matter appear on 13 December 2021 for hearing.