KARNATAKA HOUSING BOARD Vs. ANCHOR LINES PVT LTD.

JUDGEMENT

(1.) Petitioner - Karnataka Housing Board a statutory authority seeks to lay a challenge to the order dtd. 16/1/2016 (Annexure-L) issued by the Court below in Execution Case No. 11/2016 whereby apart from attaching the properties in question, a direction has been issued restraining their alienation. Learned Sr. Advocate appearing for the petitioner vehemently argues that when the very award itself is unsustainable and a challenge is laid thereto, impugned action could not have been taken. He submits that the respondent award holder company having been struck off by the Registrar of Companies, the arbitration proceedings could not have been taken up. He also notifies to the court the interim stay of award granted by the Commercial Court below.

(2.) After service of notice, the respondent-awardee having entered appearance through its counsel opposes the petition making submission in justification of the impugned order and the reasons on which it has been constructed. He also contends that, the award is already put in challenge and stay of further proceedings having been obtained, the Writ Petition is misconceived. So contending, he seeks dismissal of the Writ Petition.

(3.) Having heard learned counsel for the parties and having perused the petition papers, this Court declines indulgence in the matter broadly agreeing with the submission made on behalf of the respondent. As already mentioned above, petitioner's challenge to the award is very much pending before the Commercial Court u/s 34 of the Arbitration and Conciliation, Act 1996 and stay of further proceedings has also been obtained. In the meanwhile, Attachment Order has been made in the execution process, is true. Such an order protects both the sides and therefore voiding it would not serve the cause of justice.