TMI Blog2019 (3) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... filing a reply to the Arbitrator, the Appellants are attempting to nullify the Award of the admitted liability by putting forth an argument which has no basis. The legislative policy and the series of decisions of this Court and the Apex Court envisages a lean towards upholding the Arbitral Awards. In the present case what we have before us is a clear case of debtors refusing to pay back the loan. The Arbitrators gave ample opportunity to file reply yet the Appellants did not do so. The challenge raised on the same ground against the Respondent in identical circumstances stands concluded against the Appellants up to the Apex Court. The sole contentions advanced by the Appellants cannot be accepted - appeal dismissed. - COMMERCIAL A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o file a reply. The learned Arbitrator gave several opportunities to file a reply. Ultimately, the Arbitrator put the Appellants to notice that if they do not file a reply, the proceedings will have to be concluded without reply. Still, the Appellants did not file any reply. The Arbitrator perused the material on record and concluded that the loan was availed by the Borrowers which they failed to repay. Accordingly, the Arbitrator passed an Award on 24 March 2014 directing the Appellants to jointly and/or severally pay the Respondent Karvy Financial Services a sum of ₹ 23,00,00,000/- due as on 16 July 2013 with further interest and cost. 4. The Appellants filed Arbitration Petition No. 1621 of 2014 in this Court under Section 34 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed the impugned order without seeking leave of the Company Court under Section 446 of the Companies Act. Mr. Shaikh, the learned Counsel for the Respondent, supported the Award and the impugned order passed by the learned Single Judge. 8. The sequence of events is this. The Agreement was executed on 19 December 2011 between the Appellants and the Respondent. The Agreement was terminated on 24 May 2013. A Company Petition by a third party was filed against Birla Power Solutions on 9 May 2013. The Arbitration Award was rendered on 24 March 2014. The Arbitration Petition was filed on 28 June 2014. Thereafter, Birla Power Solutions was wound up on 28 August 2014 and order was passed by the learned Single Judge on 8 April 2015. 9. Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etition and the orders and decrees passed between the date of presentation of the Company Petition till the order of winding up will stand retrospectively invalid, is far too wide and sweeping. If it is upheld, it will cause innumerable difficulties and hardship. Such an interpretation will make the Section impossible to comply. It is however not necessary to conclude finally on this legal position in this Appeal for the following reasons. 11. The order of winding up was passed on 28 August 2014. Therefore, when the Award was passed on 24 March 2014, there was no order of winding up. The Arbitration Petition was filed by the Petitioner on 24 June 2014. At that time also the order of winding up was not passed. However, when the Arbitratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the Appellants the learned Single Judge should not have proceeded with the matter because of the order of winding up, the Appellants should have brought this to the notice of the learned Single Judge. Having remained silent, not even filing a reply to the Arbitrator, the Appellants are attempting to nullify the Award of the admitted liability by putting forth an argument which has no basis. 13. The Appellants have availed the loan and have not repaid the amount. The learned Single Judge took note of the admitted liability and dismissed the Arbitration Petition. The other grounds were raised by the Appellants in respect of mortgage which the learned Single Judge did not find it appropriate to deal with. The learned Single Judge not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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