STATE OF ORISSA Vs. DURGA CHARAN ROUTRAY

JUDGEMENT

(1.) An arbitration award was passed by Hon'ble Mr. Justice P. C. Mishra, Retired Judge of Orissa High Court awarding a sum of Rs. 17,08,631/- as escalation charges and after computing interest thereon the award comes to a sum of Rs. 32,93,445/- as well as memo of costs amounting to Rs. 1,88,517/-. Therefore, the total award amount to Rs. 34,81,962/- vide an award dated 7th March, 2003.

(2.) The State of Orissa on 23-6-2003 filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the 1996 Act") before the District Judge, Khurda at Bhubaneswar and the same was registered as Arbitration Petition No. 227 of 2003. On the self-same date, i.e. on 23-6-2003 the claimant (respondent herein) Sri Durga Charana Routray filed an Execution Case No. 65 of 2003 before the District Judge, Puri seeking for execution of the arbitration award. In the aforesaid execution petition the respondent also filed a further application under Section 9 of the 1996 Act praying for deposit/release of the awarded amount and the same came to be allowed vide order dated 3-4-2004, with a direction to the State-appellant herein, to make the deposit of the decretal amount within a month and the respondent (decree holder) was allowed to withdraw the said amount by either furnishing a bank guarantee or furnishing security, in favour of the State of Orissa. The State of Orissa-appellant herein has sought to challenge the aforesaid order dated 3-4-2004 of the District Judge, Puri in Arbitration Appeal No. 7 of 2004.

(3.) The State of Orissa filed application under Section 34 of the 1996 Act, for setting aside the award, and was registered as Arbitration Petition No. 227 of 2003 before the District Judge, Khurda at Bhubaneswar, came to be rejected on 21-6-2004 and being aggrieved by the same, the State has filed Arbitration Appeal No. 21 of 2004.