Case Note & Summary
The case involves execution proceedings arising from a consent award dated 26th September 2001 passed by an Arbitral Tribunal. The award was in full and final settlement of all claims between the parties, where the judgment creditor accepted a sum of Rs. 15,00,00,000/- (Rupees Fifteen Crores). The judgment creditor filed Chamber Summons No.335 of 2005 and Chamber Order (Lodging) No.235 of 2005 in Execution Application No.77 of 2002. Two main questions arose for consideration: first, whether the judgment creditor is entitled to claim statutory interest under Section 31(7) of the Arbitration and Conciliation Act, 1996; and second, whether the judgment creditor is entitled to claim reimbursement of cost, expenses and outgoings in respect of the disputed properties as determined by the Commissioner in his report dated 12th April 2005. The court, after considering the submissions, held that the judgment creditor is entitled to both statutory interest under Section 31(7) of the Act and reimbursement of the costs and expenses as per the Commissioner's report. The order disposed of the questions raised in the proceedings.
Headnote
A) Arbitration Law - Statutory Interest - Section 31(7) of Arbitration and Conciliation Act, 1996 - Entitlement to interest on award amount - The court considered whether the judgment creditor could claim statutory interest under Section 31(7) of the Act in execution proceedings. Held that the judgment creditor is entitled to statutory interest as per the provision. (Paras 1-2)
B) Execution Proceedings - Reimbursement of Expenses - Commissioner's Report - The court examined whether the judgment creditor could claim reimbursement of costs, expenses and outgoings in respect of disputed properties as determined by the Commissioner in his report dated 12th April 2005. Held that the judgment creditor is entitled to such reimbursement. (Paras 1-2)
Issue of Consideration
Whether the Judgment Creditor is entitled to claim statutory interest under Section 31(7) of the Arbitration and Conciliation Act, 1996, and whether the Judgment Creditor is entitled to claim reimbursement of cost, expenses and outgoings in respect of disputed properties as determined by the Commissioner in his report dated 12th April 2005.
Final Decision
The court disposed of the questions raised, holding that the Judgment Creditor is entitled to statutory interest under Section 31(7) of the Arbitration and Conciliation Act, 1996 and also entitled to reimbursement of cost, expenses and outgoings as determined by the Commissioner in his report dated 12th April 2005.
Law Points
- Statutory interest under Section 31(7) of Arbitration and Conciliation Act
- 1996
- Reimbursement of costs and expenses in execution
- Consent award
- Commissioner's report
Case Details
2005 LawText (BOM) (05) 40
Chamber Summons No.335 of 2005 along with Chamber Order (Lodging) No.235 of 2005 in Execution Application No.77 of 2002 in Award dated 3rd November 2001 along with Commissioner's Report dated 12th April 2005
Mr.Gaurav Joshi with Mr.Ashwin Ankhad for Applicants; Mr.U.J.Makhija with Mr.Uday Bobde i/b Mr.Denzil D'Mello for Respondents 1, 4 & 5; Mr.Kishore Jain for Commissioner for Taking Accounts; Mr.G.T.Mestha, Commissioner for Taking Accounts is present
Camoron Finance & Investments
M/s.Viral Enterprise, M/s.Sandip Enterprise, Manish Estates Pvt.Ltd., M/s.Saral Enterprises (Chakala Property), M/s.Saral Enterprise (Ghatkopar Property), Recovery Officer, Debt Recovery Tribunal (I), The Commissioner of Taking Accounts, High Court, Bombay
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Nature of Litigation
Execution proceedings arising from a consent award in arbitration.
Remedy Sought
Judgment Creditor sought statutory interest under Section 31(7) of the Arbitration and Conciliation Act, 1996 and reimbursement of costs, expenses and outgoings as per Commissioner's report.
Filing Reason
To enforce the consent award and recover amounts due.
Previous Decisions
Consent Award dated 26th September 2001 passed by Arbitral Tribunal; Commissioner's Report dated 12th April 2005.
Issues
Whether the Judgment Creditor is entitled to claim statutory interest under Section 31(7) of the Arbitration and Conciliation Act, 1996?
Whether the Judgment Creditor is entitled to claim reimbursement of cost, expenses and outgoings in respect of disputed properties as determined by the Commissioner in his report dated 12th April 2005?
Submissions/Arguments
Applicants argued for entitlement to statutory interest and reimbursement.
Respondents opposed the claims.
Ratio Decidendi
The Judgment Creditor is entitled to statutory interest under Section 31(7) of the Arbitration and Conciliation Act, 1996 and reimbursement of costs and expenses as per the Commissioner's report.
Judgment Excerpts
This Order will dispose of the questions raised in the above numbered proceedings.
Essentially, two questions will arise for my consideration: Firstly, whether the Judgment Creditor is entitled to claim statutory interest in terms of Section 31(7) of the Arbitration and Conciliation Act, 1996? Secondly, whether the Judgment Creditor is entitled to claim reimbursement on the cost, expenses and outgoings in respect of the disputed properties, as determined by the Commissioner in his report dated 12th April 2005?
Procedural History
Arbitration proceedings culminated in a Consent Award on 26th September 2001. Execution Application No.77 of 2002 was filed. Chamber Summons No.335 of 2005 and Chamber Order (Lodging) No.235 of 2005 were filed in the execution application. The Commissioner submitted a report on 12th April 2005. The present order disposes of the questions raised in these proceedings.
Acts & Sections
- Arbitration and Conciliation Act, 1996: 31(7)
