Delhi Electric Supply Undertaking Vs. M/s M.S. Chawla & Co.
EmailAppeal: Civil Appeal No. 3097 of 1995
Petitioner: Delhi Electric Supply Undertaking
Respondent: M/s M.S. Chawla & Co.
Apeal: Civil Appeal No. 3097 of 1995
Judges: M. JAGANNADHA RAO & M.B. SHAH, JJ.
Date of Judgment: Oct 08, 2000
Head Note:
ARBITRATION
Arbitration Act, 1940
Sections 41, 20 – Stay – Petition under Section 20 pending – High Court granting absolute stay of recovery of entire amount of demand – Supreme Court, on SLP, directing deposit of 50% in 3 monthly instalments and ad-interim injunction granted. Held that interim orders passed on 28.2.95 should govern the proceedings under Section 20.
(Para 2)
JUDGEMENT:
ORDER
1. This is an appeal arising out of orders passed by the Delhi High Court in applications filed under Section 41 of the Indian Arbitration Act, 1940. The main application filed by the respondent under Section 20 of the Act is pending in the High Court. The learned Single Judge who dealt with the application under Section 41, granted an absolute stay of the recovery of the amount covered by the bill issued on 27.3.91 by the appellant for the period from May, 1988 to November, 1990 which was in a sum of Rs. 67,56,876.59. On appeal by the Electricity Undertaking, this Court passed an order in this appeal on 28th February, 1995 as follows:
“Delay condoned.
Special leave granted. Printing dispensed with. The interim injunction granted by the High Court in the penultimate paragraph of the impugned judgment is set aside and instead there will be an ad interim injunction against
recovery from the respondent provided the respondent deposits 50 per cent of the total dues, i.e. 50% of Rs. 67 lakhs, in three monthly instalments commencing from 10th March, 1995 and
ending with 10th May, 1995. If there is any default, the injunction will cease to operate.
2. It appears that this order has been complied with by the respondent. After hearing learned senior Counsel on both sides, we are of the view that the said order should govern pending disposal of the application under Section 20 of the said Act.
3. The High Court is, however, requested to dispose of the matter at an early date, preferably within six months from today.
4. The appeal is disposed of accordingly. There shall be no order as to costs.
1. This is an appeal arising out of orders passed by the Delhi High Court in applications filed under Section 41 of the Indian Arbitration Act, 1940. The main application filed by the respondent under Section 20 of the Act is pending in the High Court. The learned Single Judge who dealt with the application under Section 41, granted an absolute stay of the recovery of the amount covered by the bill issued on 27.3.91 by the appellant for the period from May, 1988 to November, 1990 which was in a sum of Rs. 67,56,876.59. On appeal by the Electricity Undertaking, this Court passed an order in this appeal on 28th February, 1995 as follows:
“Delay condoned.
Special leave granted. Printing dispensed with. The interim injunction granted by the High Court in the penultimate paragraph of the impugned judgment is set aside and instead there will be an ad interim injunction against
recovery from the respondent provided the respondent deposits 50 per cent of the total dues, i.e. 50% of Rs. 67 lakhs, in three monthly instalments commencing from 10th March, 1995 and
ending with 10th May, 1995. If there is any default, the injunction will cease to operate.
2. It appears that this order has been complied with by the respondent. After hearing learned senior Counsel on both sides, we are of the view that the said order should govern pending disposal of the application under Section 20 of the said Act.
3. The High Court is, however, requested to dispose of the matter at an early date, preferably within six months from today.
4. The appeal is disposed of accordingly. There shall be no order as to costs.
