DSL ENTERPRISES PRIVATE LIMITED Vs. N.C.CHANDRATRE

JUDGEMENT

(1.) Rule; with the consent of Counsel for the parties returnable forthwith. With the consent of Counsel and at their request the Petition is taken up for hearing and final disposal.

(2.) The Petitioner is a Company incorporated under the Companies' Act, 1956, in accordance with a scheme for rehabilitation sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985. The Petitioner is a successor in interest of a Company by the name of Datar Switchgear Limited (DSL).

(3.) DSL had claims against the Maharashtra State Electricity Distribution Company Limited (MSEDC) which were referred to an arbitral tribunal constituted under the Arbitration and Conciliation Act, 1996. The arbitral tribunal made an award on 18 June 2004 in the amount of Rs. 179 crores together with interest at 10% per annum. Initially, the arbitral award was set aside by a Learned Single Judge of this Court, but on appeal, the proceedings were remanded back to the Learned Single Judge for fresh disposal. On 18 March 2009, the Learned Single Judge dismissed a Petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the arbitral award. MSEDC filed an appeal before the Division Bench. By an order dated 2 May 2009, the Division Bench granted an interim stay of the execution of the award subject to MSEDC depositing an amount of Rs.179 crores and furnishing a Bank Guarantee for the balance of Rs.86 crores (the contention of DSL being that the total amount due inclusive of interest was Rs.265 crores). Against the order of the Division Bench, Special Leave Petitions were filed before the Supreme Court both by DSL and by MSEDC. The Supreme Court modified the conditions on which a stay of execution of the award was granted by the Division Bench in the following terms: