Prathien Infrastructures vs. Union Of INDIA
Facts
The petitioner, Prathien Infrastructures, sought enforcement of an Arbitral Award dated August 23, 2023, for an amount of approximately Rs. 4,47,42,043/-. The respondent, Union of India, through its counsel, presented a letter dated July 8, 2024, indicating that a sum of Rs. 4,65,89,532/- had been paid to the petitioner, covering interest up to July 15, 2024. The petitioner's counsel acknowledged this payment but raised the issue of applicable GST amounts as per paragraph 16.4 of the award, even though not explicitly prayed for in the execution petition. The respondent assured that any GST dues would be cleared expeditiously, within eight weeks.
Held
The Court held that the decree is satisfied and the amount due and payable has been paid, based on the payment of Rs. 4,65,89,532/- made by the Union of India, which covered the principal amount and interest up to July 15, 2024. The Court took on record the statement made by the learned CGSC for the Union of India that any applicable GST dues would be cleared expeditiously and in any case not later than eight weeks from the date of the order. The ratio of this decision is that once a substantial payment covering the award amount and interest is made and confirmed by the respondent, and the respondent undertakes to clear any residual statutory dues like GST within a stipulated timeframe, the execution petition can be disposed of as satisfied. The Court did not expressly leave any issue undecided.
Key Issues
1. Whether the Arbitral Award dated August 23, 2023, stands satisfied and the amount due payable has been paid, considering the payment made by the Union of India. Petitioner's contention: While acknowledging the payment made, the petitioner argued that the GST amounts, if applicable, must also be paid as stipulated in paragraph 16.4 of the arbitral award, even if not specifically included in the execution petition's prayer. Respondent's contention: The Union of India contended that the payment made covers the principal amount and interest up to a specified date, effectively satisfying the decree. They further assured that any applicable GST dues would be cleared expeditiously within eight weeks.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 23.07.2024
This is a petition seeking enforcement of the Arbitral Award dated 23.08.2023. 2. The decree holder has sought payment of about Rs. 4,47,42,043/-.
Mr. Garg, learned CGSC has handed over a letter dated 08.07.2024, which shows that a sum of Rs. 4,65,89,532/- has been paid to the decree holder covering the interest upto 15.07.2024. 4. For the said reasons, I am of the view that the decree is satisfied and the amount due and payable has been paid.
Mr. Gupta, learned counsel for the decree holder states that even though not prayed in the present execution petition, the GST amounts, if applicable, have to be paid as per paragraph 16.4 of the award.
Mr. Garg, learned CGSC states that in case there is any amount to be paid on account on GST dues, the same shall be cleared expeditiously This is a digitally signed order. The authenticity of the order can be r
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