NEPA LIMITED Vs. MANOJ KUMAR

JUDGEMENT

(1.) THIS is a revision by judgment-debtor Nepa Limited against the order by which its application raising the two objections regarding the enforcement of the award against it has been rejected.

(2.) IT is not in dispute that an award dated 14-4-2000 has been passed by the arbitrator against the judgment-debtor company directing it to pay an amount of Rs. 14,49,300/- with interest at the rate of 18% per annum to the decree holder. The respondent had deposited an amount of Rs. 20,59,800/-with the petitioner company on 22-10-1996 for "due performance of the contract". Out of this security deposit a deduction of Rs. 6,10,500/- has been allowed.

(3.) THE objection of the judgment-debtor is two-fold. Firstly, the judgment-debtor company has become "sick industrial company" under the Sick Industrial Companies (Special Provisions) Act, 1986 (hereinafter to be referred to as the Act) and its application under Section 15 of the Act has been registered by the Board for Industrial and Financial Reconstruction on 29-5-1998 in Case No. 502 of 1998 and therefore Section 22 (1) of the Act has come into play and it bars any proceeding for "execution, distress or the like against any of the properties of the industrial company except with the consent of the Board". Secondly, an amount more than the amount of the award is recoverable from the decree-holder as "excise duty" and, therefore, the award cannot be executed.