GAIL (INDIA) LTD. Vs. SURYA ROSHINI LTD.

JUDGEMENT

(1.) THE instant appeal impugns the order dated 16th July, 2014 passed by the learned Single Judge, accepting objections on behalf of the respondent to the execution case filed by the appellant pursuant to an arbitral award dated 19th April, 2007. As we had heard the matter on merits, we have examined the matter on merits as well. It appears that by an arbitral award dated 19th April, 2007, an award for Rs. 20,69,711/ - was made in favour of the appellant. The learned arbitrator had rejected the petitioner's claim No. 5 seeking an amount over Rs. 61,00,000/ - against the respondent herein.

(2.) BARELY five days after the making of the award the respondent addressed a letter to the appellant dated 24th April, 2007 referring to several telecommunications with the General Manager (Legal) of the appellant since 20th April, 2007 to pay the awarded amount. The letter sought information as to the particulars of the person to whom the cheque for Rs. 20,69,711/ - was to be submitted in full and final payment. The respondent also sent another letter dated 2nd May, 2007 addressed to the Chairman -cum -Managing Director of the respondent seeking a meeting to settle the long pending matter. On 4th May, 2007, Executive Director of the respondent had held a meeting with Chairman -cum -Managing Director, all of which is evidenced by correspondence placed on record. Additionally, on 9th May, 2007, the respondent deposited with the appellant a cheque bearing No. 019648 dated 9th May, 2007 drawn on the IDBI Bank, New Delhi in the sum of Rs. 20,69,711/ - towards the full and final settlement of the amount awarded. The respondent informed the appellant that "after this payment, no claim shall be pending". Photocopy of the entire correspondence as well as the cheques were filed with its objections by the respondent before the learned Single Judge.

(3.) ON 4th June, 2007, the appellant GAIL wrote to the respondent that it was contemplating preferring objections against the arbitral award and at the same time informed the petitioner that the amount in terms of the award be paid in favour of the company by cheque or demand draft. It is noteworthy that this letter was addressed to the petitioner by the respondent that the Manager (Law) i.e. Legal Department of the appellant. The cheque of 9th May, 2007 had been deposited with the Executive Director (Project) of the appellant.