Angerlehner Structural And Civil Engineering Company VS Municipal Corporation Of Greater Bombay

The Applicant, in pursuit of justice and enforcement of their rights, has filed an Execution Application seeking to execute the Arbitral Award dated 23rd June 2014. This Award, a culmination of a thorough arbitration process, was rendered in favor of the Applicant and against the Municipal Corporation of Greater Mumbai (referred to as “MCGM” in the application).

The background leading to this Arbitral Award is rooted in a dispute between the Applicant and the MCGM, concerning matters of contract and obligations therein. The Applicant had entered into an agreement with the MCGM, presumably for the provision of goods, services, or execution of works, as detailed in the original contract. However, as is common in contractual relationships, disputes arose regarding the performance, terms, and compliance with the said agreement.

In an effort to resolve these contentious issues outside of the traditional judicial system, both parties agreed to submit to arbitration, a private and alternative method of dispute resolution. This process led to the Arbitral Tribunal’s examination of the facts, legal arguments, and evidence presented by both the Applicant and the MCGM. After due deliberation and adherence to the principles of natural justice, the Arbitral Tribunal rendered its decision on 23rd June 2014, issuing an Award in favor of the Applicant.

The Arbitral Award, being a binding decision on both parties, stipulated the rights, obligations, and remedies. It likely detailed the monetary sums, performance actions, or other relief to be provided by the MCGM to the Applicant. However, despite the clarity and finality of the Award, the MCGM has failed, neglected, or refused to comply with its obligations under the Award.

Hence, the Applicant, having exhausted all amicable attempts to secure compliance, has resorted to the legal recourse provided by the Arbitration and Conciliation Act (or relevant legislation). The Execution Application, a procedural step within the enforcement process, seeks the assistance of the competent court to compel the MCGM to honor the Arbitral Award. This may involve the court issuing orders for attachment of assets, garnishment of funds, or any other lawful means to enforce the Award.

The Applicant contends that the Arbitral Award represents the culmination of a fair, impartial, and legally binding process. It reflects the rights and entitlements established through the arbitration proceedings, which the MCGM is duty-bound to fulfill. By filing this Execution Application, the Applicant seeks nothing more than the fulfillment of the MCGM’s legal obligations as determined by the Arbitral Tribunal.

In conclusion, this Execution Application stands as a testament to the Applicant’s commitment to upholding the rule of law and ensuring the rightful enforcement of the Arbitral Award dated 23rd June 2014. It is a lawful and necessary step in the pursuit of justice and the protection of contractual rights, aimed at compelling the MCGM to comply with its obligations as per the Award.

This Execution Application pertains to the enforcement of an Arbitral Award issued on June 23, 2014, in favor of the Applicant against the Municipal Corporation of Greater Mumbai (MCGM). The MCGM contested the Award before the court under Section 34 of the Arbitration and Conciliation Act, 1996. However, their challenge was dismissed by a single judge of the court on February 27, 2019. An appeal under Section 37 of the Arbitration Act was also rejected by the Division Bench of the court on September 8, 2021. Following this, the MCGM further appealed to the Honorable Supreme Court, which in turn dismissed the Special Leave Petition (SLP) on November 22, 2021. The Supreme Court then granted the MCGM until March 31, 2022, to make payment to the Applicant.

Given these developments, the Applicant, a foreign entity without an Indian bank account (as the contract was concluded in 2003), filed this Execution Application on March 9, 2022. During the hearing, the Applicant requested that the MCGM make payment under the Arbitral Award to the Applicant’s lawyer and agent. This intermediary would then hold the funds in escrow, transferring them to the Applicant in Austria. This arrangement was formalized through an Escrow Agreement dated February 3, 2022.

The Execution Application was filed to enforce an Arbitral Award from June 23, 2014, in favor of the Applicant against the Municipal Corporation of Greater Mumbai (MCGM). The MCGM had challenged this Award under Section 34 of the Arbitration and Conciliation Act, 1996, before the court, but their challenge was dismissed by a single judge on February 27, 2019. An appeal under Section 37 of the Arbitration Act was also dismissed by the Division Bench of the Court on September 8, 2021. Following this, an SLP (Special Leave Petition) was filed with the Hon’ble Supreme Court, which was also dismissed on November 22, 2021. The Supreme Court granted the MCGM time until March 31, 2022, to make the payment to the Applicant.

The Execution Application was submitted on March 9, 2022, where it was noted that the Applicant, being a foreign entity, did not have a bank account in India since the contract with the MCGM was made in 2003. Therefore, the Applicant requested that the payment under the Arbitral Award be made to the Applicant’s lawyer and agent, who would hold the funds in escrow for transfer to the Applicant in Austria. An Escrow Agreement from February 3, 2022, and a letter from November 29, 2021, addressed to the MCGM requesting the payment to be made to their lawyer’s account in escrow were presented to the Court and marked for identification.

On March 9, 2022, Mr. Sakhare, the Senior Counsel for the MCGM, informed the Court that the MCGM was willing to make the payment to the Applicant’s lawyers’ account as requested. However, he emphasized that once this payment was made, the MCGM would be relieved of all liabilities under the Award, and the Applicant would have no further claims against them.

The Court, on March 9, 2022, directed the MCGM to make the payment due under the Arbitral Award (from June 23, 2014) by crediting Bank Account No.5020035159821 in HDFC Bank Ltd, Nariman Point, Mumbai 400 021, on or before March 31, 2022. It was clarified that once this payment was made, the MCGM’s liability under the Award would be satisfied, and the Applicant would have no further claims against the MCGM related to the Arbitral Award dated June 23, 2014.

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