COGENT VENTURES (INDIA) LIMITED Vs. S K MARWAH

JUDGEMENT

(1.) These are two petitions filed by the petitioner against the respondent. One is under Section 9 and the other is under Section 11(6) of the Arbitration and Conciliation Act, 1996. Both these petitions are proposed to be decided by this common judgment because question of facts and law involved in them are identical.

(2.) The factual matrix of the case giving rise to these petitions is as follows:-

(3.) On or around 23.08.2004, the petitioner filed an application under Section 9 of the Arbitration and Conciliation Act, 1996 for ad interim injunction restraining the respondent from alienating or creating any third party right/charge in the subject property agreed to be sold vide above referred Agreement to Sell dated 10.11.2003. This Court vide its interim order passed on 31.08.2004 in OMP No. 279/2004 restrained the respondent from selling, disposing of or transferring the suit property in favour of any third person subject to the petitioner's depositing the balance sale consideration in the Court within two weeks. This interim order was modified vide order dated 25.10.2004 to the extent that subject to the petitioner's depositing a sum of Rs. 25 lacs in the Court within two weeks, the respondent would stand restrained from selling, disposing of or transferring the suit property in favour of any third person. This amount of Rs. 25 lacs was not deposited by the petitioner within the stipulated time period of two weeks mentioned in the order dated 25.10.2004 The time for depositing the said amount was extended till 16.11.2004 without prejudice to the rights of the parties vide order passed on 08.11.2004 In compliance of the aforementioned orders, the petitioner deposited a cheque of Rs. 25 lacs with the Court on 15.11.2004 However, the said cheque deposited by the petitioner in the Court was received back unpaid from the Reserve Bank of India with the objection 'Funds insufficient' and a report in this regard was made by the Registry to the Court which was taken on record vide order dated 19.01.2005. Thereafter the proceedings in OMP No. 279/2004 under Section 9 of the Arbitration and Conciliation Act, 1996 continued to be adjourned from time to time till the matter was finally heard along with the connected petition under Section 11 (6) of the said Act on 03.10.2007.