The High Court has directed the Ministry of Railways to deposit INR 3.9 crore within a month or order the confiscation of the Western Railway building near Churchgate railway station. The court passed this order in connection with the implementation of the 2015 order of the arbitrator.
Even when the arbitrator gives an award in its favor, it is not implemented by the Western Railway. Therefore, a single bench of Justice Abhay Ahuja passed the above order while hearing the petition filed by KP Traders seeking enforcement of the arbitral award. An extension was sought from the Railways. However, while rejecting it, it was noted that the Central Government's appeal under Section 37 of the Arbitration and Conciliation Act had already been dismissed and the demand for its re-filing was also rejected.
However, the court also opined that confiscation of assets would serve no purpose. Also, Railways ordered a deposit of INR 3.9 crore within four weeks. However, the court warned that if the railway ministry fails to deposit the amount within the given time, it will order the confiscation of the building of Western Railway at Churchgate.
What is the case?
KP Traders was appointed in 1998 by the Ministry of Railways for handling and transportation of goods and cargo. However, in 2003, a dispute arose between the company and the Ministry of Railways regarding the contract. Hence, the company resorted to arbitration. At that time, the verdict was in favor of the company. Accordingly, the Ministry of Railways ordered the company to pay an amount of INR 3.9 crore with 18 percent interest on the principal outstanding amount. However, due to non-implementation of the order, the company approached the High Court in 2016. The petition seeking enforcement has been pending since 2016. Therefore, the company had sought the court to issue a confiscation order under the Code of Civil Procedure (CPC).
Share
Tweet
