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2021 (11) TMI 910 - HC - Insolvency and BankruptcyValidity of Arbitral Award - Seeking stay of proceedings before the NCLT - Section 36(1) of Arbitration and Conciliation Act, 1996 read with Order XXI Rule 11 CPC - HELD THAT:- It is noted that when judgment debtor approached Hon’ble Supreme Court seeking stay of proceedings before the NCLT, it undertook to pay within twelve weeks the amount of ₹ 8.81 crores i.e. the amount claimed by the decree holder in its petition before the NCLT i.e. the awarded amount of ₹ 8,35,33,837/- + interest @ 12% from the date of Award till the date of filing of the petition i.e. 27.05.2019 as ₹ 38,17,382 + ₹ 8,00,000/- 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 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 award till date of payment on the awarded amount in favour of decree holder”. So, upon payment of ₹ 8,81,51,219/-crores to the decree holder, the judgment debtor cannot now claim that it has already honoured the arbitral award by complying the directions of Hon’ble Supreme Court vide order dated 07.02.2020. The judgment debtor is under the obligation to honour the arbitral Award in its true letter and spirit and cannot escape from paying the balance amount of interest due towards it. The judgment debtor is directed to pay the balance amount of interest, which is due and payable to decree holder from 27.05.2019 with interest @12% p.a. till the date of realization - petition disposed off.
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