- (1.) Leave granted.
(2.) The parties had entered into an agreement under which the respondent was to supply certain material and make construction. Disputes arose between them. The disputes were referred to arbitration. Claims and counterclaims were made by the parties before the arbitrator. Ultimately, the arbitrator, by an award dated 9-1-2001, held that an amount of rs 13,97,072.24 was due to the respondent and an amount of Rs 9,85,316 was due to the appellant. In the circumstances, the arbitrator held that ultimately the respondent was entitled to recover a sum of Rs 4,11,756 being the amount of Rs 13,97,072.24 less Rs 9,85,316 from the appellant. Accordingly, the award was passed directing the appellant to pay the respondent the said sum together with interest at 12% from the date of the award till payment.
(3.) An application was made by the respondent challenging that part of the award which related to the finding of the arbitrator in favour of the appellant. While the challenge was pending, an application for execution was moved by the respondent for recovery of the entire amount of Rs 13,97,072.24 from the appellant. The application for execution was allowed. Being aggrieved, the appellant preferred an appeal before the Division Bench. Pending the appeal before the Division Bench, the Division Bench had granted stay of the order of the executing court subject to the appellant depositing a sum of rs 5,00,000. The said amount of Rs 5,00,000 was deposited and has been withdrawn by the respondent against a bank guarantee. The Division Bench was of the view that since there was no challenge by the appellant to the finding of the arbitrator that an amount of Rs 13,97,072.24 was payable, the respondent was entitled to execute the award for that amount. The Division bench in disposing of the appeal directed the appellant to deposit a further sum of balance awarded amount and gave liberty to the respondent to withdraw the same upon furnishing appropriate security.;