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Judgment
The Court: Before the order of sale passed in a proceeding Under Section 9 of the Arbitration and Conciliation Act, 1996 could be given effect to, an
award was passed and accordingly the award holder was directed to carry forward the prayer for sale in the execution proceeding which has now
been filed for enforcement of the award dated 14th June, 2017. The award is not under challenge.
It appears that the award dated 14th June, 2017 was communicated to the judgment debtor under cover of a letter dated 14th June, 2017. The
postal envelope said to contain the said award was despatched on 7th July, 2017 to the judgment debtors at their last known addresses.Â
Although no acknowledgement due card has been received by the Arbitrator but having regard to the fact that the award was sent to the last known
address of the judgment debtors and in view of the decision of the Hon’ble Division Bench in GA No.922 of 2017, APOT No.89 of 2017 and EC
No.1285 of 2015 (Magma Fincorp Limited vs. Ashok Kumar & Ors.) dated 13th September, 2017, where the Hon’ble Division Bench had
considered the aspect of service of award upon the judgment debtors it shall be presumed that the award has been served upon the judgment debtors.
In spite of service the judgment debtors are not represented. Under such circumstances, the sale is confirmed in favour of Anant Jain of 21/1, Kali
Kumar Banerjee Lane, Kolkata-2, for a sum of Rs.3.50 lakhs. The successful bidder has, however, paid a sum of Rs.70,000/- by way of bank draft
dated 20.05.2017 towards earnest money.Â
However, since the sale could not be confirmed during the validity of the bank draft, the said bank draft had lapsed. The petitioner, however, submits
that the bidder is willing to buy the said asset at a sum of Rs.3.50 lakhs. Under such circumstances, the sale is confirmed in favour of Anant Jain for a
sum of Rs.3.50 lakhs. The entire consideration amount shall be paid in favour of the award holder by a demand draft within three weeks from the
date of communication of this order.
The Receiver upon intimation being received that the entire consideration amount has been paid shall return the lapsed demand draft either by herself
or by her duly appointed agent and shall hand over the said asset to the judgment debtors within a week thereafter. Â The receiver shall be entitled to
a final remuneration of 1200 GMs. to be paid by the award holder and after receiving the remuneration shall stand discharged.
Since it is contended that after adjustment of the sale proceeds substantial amount is due and payable leave is given to the award holder to file a
supplementary affidavit to bring on record the amounts which would be due and payable upon adjustment of the sale proceeds. A copy of the said
affidavit shall also be served upon the judgment debtors. The matter stands adjourned for six weeks.