Delhi HC: Girl Being Friendly on Valentine’s Day Does Not Justify Forced Sexual Activity under POCSO  ||  Delhi HC: Street Vendors Must Maintain Cleanliness and Not Encroach on Public Spaces  ||  Delhi HC: Victim’s Negligence Cannot Bar Compensation in Railway Accident Cases  ||  Jharkhand HC: Pre-1947 Transfers Exempt from Section 46; 45-Year Delay Blocks Restoration  ||  Delhi HC: Mediation Settlement Does Not Remove Criminal Liability But Can be Considered For Bail  ||  Delhi High Court: Newslaundry Acted Maliciously and Showed Intolerance Toward TV Today  ||  SC: New Tree Growth on Land Approved For Development Does Not Qualify it as 'Deemed Forest'  ||  SC: Confiscation Proceedings Can Continue Against Wife of Deceased Public Servant with Illicit Asset  ||  Supreme Court: Strict Procedure Must be Followed under UP Gangsters Act Due to Serious Consequences  ||  Supreme Court: HCs Can Go Beyond FIR to Quash Frivolous or Vexatious Criminal Cases    

Cobra Instalaciones Y Servicios, S.A. and Shyam Indus Power Solution Pvt. Ltd. Vs. Haryana Vidyut Prasaran Nigam Ltd. - (High Court of Delhi) (04 Sep 2023)

If the Judgment debtor has intimated the decree holder and award amount is available for withdrawal unconditionally, the liability of judgment debtor would cease on the date of deposit

MANU/DE/5895/2023

Arbitration

By way of present Execution Petitions filed under Section 36 of the Arbitration and Conciliation Act, 1996 ('the A&C Act') read with Order XXI Rule 1 CPC, the Decree Holder seeks enforcement of common Award. By way of the Award, AT has awarded cumulative amount of Rs. 5,54,09,437, including interest at the rate of 9% per annum from 29.07.2020 till the date of payment ('the Award amount'), in favour of the Award Holder/Decree Holder ('the DH').

The short issue involved is as to whether JD is liable to pay interest for the period between the date of deposit till the date of withdrawal of the deposit by the DH or dismissal of the objections, as in the present case.

Under Order XXI Rule 1(1)(a), payment of Award amount by JD by way of court deposit is permissible. Under Order XXI Rule 1(2), a court notice is required to be given to DH in case the Award amount is deposited in court under Sub-Rule (1)(a). Proviso to Rule 1 stipulates that in case DH refuses to accept the Award amount tendered to him, interest shall cease to run from the date of tender.

If the JD has intimated the DH with a notice of deposit and the Award amount is available for withdrawal to the DH unconditionally i.e., without any condition of furnishing security or otherwise, the liability of JD would cease on the date of deposit.

In the present cases, the JD had deposited the Award amount in the execution proceedings with the requisite notice in terms of the Order XXI Rule 1 CPC. The notice was served on the date of deposit i.e., 19.05.2021 on the DH. There were no fetters upon the DH to withdraw the said amount, as admittedly there was no stay of the impugned award in the objections filed by the JD under Section 34 of the A&C Act. The failure of the DH to take steps in preferring an application for withdrawal of the Award amount would not ensure to the disadvantage of the JD. The deposit alongwith its due notice to the DH was sufficient discharge of the onus put on the JD in terms of Rule 1 Order XXI CPC. The award having already been satisfied, the present petitions are disposed of.

Tags : AWARD   EXECUTION   INTEREST  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved