SATYEN CONSTRUCTION Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) This is an application under Sec. 9 of the Arbitration and Conciliation Act, 1996 ('the Act'). The petitioner seeks liberty to withdraw a sum of Rs.4,11,89,759.00 deposited by the award debtor, State of West Bengal, with the Registrar, Original Side of this Court upon furnishing of appropriate security.

(2.) By an award dtd. 24/12/2018 (the award), the petitioner was awarded a sum of Rs.2,66,69,73.00 on account of various claims and a further sum of Rs.1,37,85,395.00 on account of costs along with interest @18% per annum from 25/12/2018 till the date of payment. The subject matter of the arbitration pertains to construction of a Bridge at Mahishadal, Nandigram Road, West Bengal. Being aggrieved by the award, the respondent has filed an application under Sec. 34 of the Act which is pending disposal. In an application under Sec. 36(2) of the Act, by an order dtd. 9/9/2019, a Coordinate Bench had directed the award debtor to furnish security. It is submitted on behalf of the parties, that security has since been furnished by the respondent. Hence, this application.

(3.) At the outset, a preliminary point of maintainability has been urged on behalf of the State. It is submitted that the reliefs sought for by the petitioner are beyond the scope and ambit of Sec. 9 of the Act. It is also submitted that by its very nature the only order which may be passed in an application under Sec. 9, is an interim order for preservation or securing the subject matter of the arbitration proceeding. It is contended that Sec. 9 of the Act does not contemplate payment of the awarded amount to the petitioner. On merits, it is submitted that there are no facts warranting withdrawal of the awarded amount. In support of such contentions, the respondent relies on the following decisions; Adhunik Steel Ltd. vs. Orissa Manganese and Minerals (P) Ltd. (2007) 7 SCC 125, AFCONS Infrastructure Ltd. vs. Board of Trustees of Port of Mumbai 2013 SCC OnLine Bom 1946 and Steel Authority of India Ltd. vs. AMCIPTY Ltd. and Anr. (2011) 3 Arbitration Law Reporter 502.