IOCEE EXPORTS LTD Vs. KALYANEE MARINE

JUDGEMENT

(1.) THIS Application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter called'the Act') to pass a pro-order prohibiting the Garnishee/3rd respondent from paying a sum of rs. 7,80,000 with the bank guarantee bearing No. LG/109/6/99 executed by them in favour of the 1st respondent pending execution of the award dated 10. 3. 2006 passed by the 2nd respondent and also prohibiting the 1st respondent from encashing the above said bank guarantee pending execution of the award dated 10. 3. 2006 passed by the 2nd respondent.

(2.) THE brief facts leading to the filing of the Application are as follows : An award was passed by the 2nd respondent-Arbitrator against the applicant-Company on 10. 3. 2006. As per the award dated 10. 3. 2006, the applicant herein was directed to pay a sum of rs. 15,36,032 to the 1st respondent and by the very same award 2nd respondent-Arbitrator directed the 1st respondent to invoke the bank guarantee dated 1. 2. 1999 of 3rd respondent-Bank for a sum of Rs. 7,80,173. Challenging the award, a Petition under Section 34 of the Act 1996 was filed in O. P. No. 360/2006 and this Court admitted the O. P. No. 360/2006 on 7. 7. 2006 and ordered private notice to the respondents in that O. P.

(3.) FOR better appreciation, section 36 is extracted below : "36 Enforcement- Where the time for making an Application to set aside the arbitral award under section 34 has expired, or such Application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of 1908) in the same manner as if it were a decree of the Court. "