LAL MAHAL LIMITED Vs. ABDUL GHAFFAR

JUDGEMENT

(1.) The plaintiff Lal Mahal Limited, then known as Shiv Nath Rai Harnarain (India) Ltd, prior to filing this suit, filed OMP No.300/2001 under Section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), pleading that:

(2.) Omp No.300/2001 came up first before this Court on 3rd October, 2001 when vide ex parte order the defendant no.2 was directed to maintain status quo as regard movement of sugar lying loaded in the Railway wagons. The said interim order continued and the proceedings were adjourned from time to time.

(3.) Vide order dated 16th December, 2002 on the application of Railways for impleadment, Railways were impleaded as respondent no. 2 in the petition, to safeguard their claim for demurrage. Vide order dated 18th March, 2004, reasoning that the value of the sugar in transit qua which status quo had been ordered was being lost with the passage of time, the said sugar was ordered to be sold by the Railways through public auction and the sale proceeds ordered to be deposited in this Court. Subsequent order dated 28th May, 2004 records that a total sum of Rs.1,95,30,000/- had been deposited in this Court by the Railways and the same was ordered to be kept in a fixed deposit.