CIVICONS ENGINEERS AND CONTRACTORS Vs. AUROFOOD LIMITED

JUDGEMENT

(1.) Counsel contends that the arbitral award is executable even though there is no decree in terms of the award. That is no doubt correct. However, the executability is dependent upon the time for filing an application under Section 34 of the Arbitration and Conciliation Act, 1996 ("the Act") to set aside the award having expired and in the event of that application having been filed within that time allowed under the law for setting aside the award, such application having been disposed of by the court by refusing to set aside the award.

(2.) Admittedly the respondent-company has applied for setting aside the award. Until that proceeding is over, and the court makes an order refusing to set aside the award, the award will not be enforceable as provided under Section 36 of the Act.

(3.) The proceeding for winding up of a company has been initiated on the ground that the respondent-company is unable to pay its debts. Though prima facie that claim is substantiated by the existence of the award, the award being enforceable is dependent upon the result of the proceeding now pending for setting aside the award. In the event, the court sets aside the award, there will be nothing for the petitioner to enforce. The company cannot be wound up when the very basis of the allegation of its inability to pay the debts is subject to the contingency of the award obtained by the claimants being upheld and there exists the possibility of the award being set aside.