ASI Limited v. Union of India

Delhi High Court · 30 Aug 2013 · 2013:DHC:7171
Rajiv Shakdher
O.M.P. 222/2012 & 1205/2012
2013:DHC:7171
civil appeal_dismissed

AI Summary

The Delhi High Court held that disputes over withheld provisional penalty amounts pending arbitration should be decided by the Arbitrator under Section 17, refusing interim reliefs from the court.

Full Text
Translation output
,{ s-22 &,27 HIGH COURT OF DELHI o.M.P. 222/20t2
ASHI LIMITED ..... Pctitioner
Through: Mr. Arun Kathpalia and Mr. Angad, Advocates
VETSUS
UNION OF INDIA ..... I{espondent ltu'ough: Mr. Jagjit Singh and Mr. Izhar Ahamad, Advocates for Northern Railway
Mr. A.S. Sinha, Advocatc for Ministry of I{ailwavs
'l- o.M.P. 1205/2012 ASI-II LTD o o.M.P. 222nU2 & 120s120t2 ..... Petitioner
Through: Mr. Arun Kathpalia and Mr. Angad, Advocates
VERSUS
30.08.2013 page I of3 UNION Ol"'INDIA ..... Respondent
T'hrough: Mr. Jagjit Singh and Mr. Izha'" Ahamad, Advocates for Northern Railways.
I\4r. A.S. Sinha, Advocatc for Ministry oI Railways
CORAM:
HON'BI,E MR. JUSTICE I{AJIV SHAKDIIER
2013:DHC:7171 \g In the captioned petitions, IJnion of India has been sued through Chief Engineer/TSP, Northern Railway.
Mr. Kathpalia appears for the petitioner while Mr. Jagjit Singh appears for Northern Railway and Mr. A.S. Sinha appears for
Ministry of Railways.
These are petitions under Section 9 of the Arbitration and
Conciliation Act, 1996 (in short the Act). The learned counsels for the parties inform me that arbitration proceedings are already underway. The arbitration proceedings presently, are at the stage of filing of statement of claim by the petitioner.
In each of the captioned petitions, interim orders are sought qua communications issued by the respondent for withholding, recovering and / or appropriating / adjusting provisional penalty / liquidated damages of various amounts.
It is noticed that in so far as OMP No.222120I2 is concerned, the following amounts have been deducted /withheld as provisional penalty amount. 'I'hese being: a sum of Rs.13,71,863.35 vide letter dated 05.12.2011 and a sum of Rs.26,87,5221- vide letter dated
22.02.2012.
In so far as OMP 120512012 is concerned, the amount withheld is a sum of Rs.30,75,7321-, though the threat issued to the petitioner was to withhold Rs.58,29,539.44 vide communication dated
18.12.2012 ' Therefore, as against the total sum claimed of Its.98,88,924.79
(Rs.13,71,863.35 -l- Rs.26,87,5221- +-Rs.58,29,539.44), a sum of o.M.P. 222/2012 & t205t20t2 pageZ of3
Rs. 71,35, I17 .35 (Rs. 1 3,71,863.35't- Rs. 26,87,522 +' Rs.30,75,7321 - stands withheld.
Having regard to the above, I am of the view that these petitions can be placed before the learned Arbitrator lvho may treat the same as applications under Section 17 of the Act and pass suitable orders with regard to the prayers made in the captioned petitions. It is ordered accordingly.
The parties will be at liberfy to prefer their claims and counter claims, if any, before the learned Arbitrator, who shall decide the same in accordance with the law.
The captioned petitions are disposed of with the aforesaid observations.
Needless to say, the learned arbitrator will be free to pass any order that he deems fit in the facts and circumstances of the case after hearing both the parties.
Dasti. r(^-\\Jy .-J -- RAJIV SHAKDHER, J AUGUST 3O,2OT3 yg
O.M.P. 22212012 & 120512012
JUDGMENT