Sarita Multiplexes Private Limited vs. Cinepolis INDIA Private Limited

Facts

These proceedings involve two enforcement petitions filed by Sarita Multiplexes Private Limited (Sarita) and Cinepolis India Private Limited (Cinepolis) concerning an Award dated 07.02.2024. The Award, later corrected by an order under Section 33 of the Arbitration and Conciliation Act, 1996, directed Cinepolis to pay occupation charges including GST to Sarita for a specific period. It also held Cinepolis entitled to a refund of a substantial amount deposited in court, which included lease rent plus GST. The parties, through their counsel, have arrived at a consent arrangement for the disposal of these enforcement proceedings, outlining the distribution of the deposited funds.

Held

The Court held that the consent arrangement arrived at by the parties, as detailed in paragraph 4 of the order, would lead to the full satisfaction of the Award dated 07.02.2024 and the subsequent correction order. The Court accepted the parties' submission that the Award would be fully satisfied upon the implementation of these directions. The operative directions involved the release of Rs. 1,23,15,892/- to Sarita (inclusive of GST and after deducting TDS, with Cinepolis to deposit the TDS amount with tax authorities and issue a certificate to Sarita), appropriation of Rs. 55,00,000/- by Sarita as security deposit, and the release of the balance amount along with accrued interest to Cinepolis. The Court did not leave any issue undecided.

Key Issues

1. Whether the parties' consent arrangement for the distribution of funds deposited in court, as detailed in paragraph 4 of the order, effectively satisfies the Award dated 07.02.2024 and the subsequent correction order. Petitioner (Cinepolis) and Respondent (Sarita) arguments: The parties, through their learned counsel, have submitted that both enforcement proceedings may be disposed of by consent based on the agreed-upon directions for the release and appropriation of funds. They have indicated that upon implementation of these directions, the Award will stand fully satisfied. No specific arguments were recorded for either side beyond their consent to the proposed settlement.