M/S Shree Lakshmi Road Transport Corporation & Anr. vs. Devyani International Limited

Facts

The petitioners, M/s Shree Lakshmi Road Transport Corporation & Anr., filed an application seeking modification of a previous order dated December 3, 2025. The original order disposed of a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996. The petitioners contended that the previous order incorrectly recorded the amount due as Rs. 8,62,500/-. They asserted that the actual amount due as of August 2025 is Rs. 41,68,650/- plus GST, along with unpaid rent/mesne profits from September 2025 onwards. The respondent, Devyani International Limited, was served advance notice and did not object to the modification.

Held

The Court allowed the application for modification. It directed that paragraph 3 of the order dated December 3, 2025, be amended to accurately reflect the amount due. The revised paragraph now states that the amount due till August 2025 is Rs. 41,68,650/- plus GST, and that unpaid rent/mesne profits from September 2025 onwards are also due and payable by the respondent. The Court reasoned that the modification was necessary to correct a factual discrepancy in the previously recorded amount. The ratio is that High Courts, in proceedings under Section 11(6) of the Arbitration and Conciliation Act, 1996, can correct factual inaccuracies in their orders upon application and with the consent of the parties, to ensure the record accurately reflects the claims being adjudicated. The operative direction was to read the modified paragraph as part of the original order.

Key Issues

1. Whether the amount due as of August 2025, including GST and subsequent unpaid rent/mesne profits, should be accurately reflected in the Court's order, as per the contention of the petitioners under Section 11(6) of the Arbitration and Conciliation Act, 1996? The petitioners argued that the previous order contained a factual error regarding the quantum of dues. They stated that the amount due till August 2025 is Rs. 41,68,650/- plus GST, and further amounts for unpaid rent/mesne profits from September 2025 onwards are also due. They relied on the arbitration clause within their agreement and the issuance of a Section 21 notice under the Arbitration Act. The respondent, through their counsel, had no objection to the prayer for modification.