- (1.)Leave granted.
(2.)Calling in question the defensibility of the order dated 17.7.2013 passed by the High Court of Judicature at Allahabad in FAFO No. 875 of 2013 whereby the Division Bench, after admitting the appeal, while dealing with the application for stay, directed the Appellants to deposit the entire amount awarded by the arbitrator in the court below with a further direction permitting the claimant-Respondent to withdraw half of the said amount without furnishing security and remaining half after furnishing security to the satisfaction of the District Judge, Kanpur with a further stipulation that in case of default in making the deposit, the order of stay shall automatically stand vacated.
(3.)The essential facts which are to be stated for adjudication of this appeal are that an agreement was executed between Kanpur Jal Sansthan, the Appellant herein, with the Respondent, M/s. Bapu Construction, on 10.06.1987 for "supply of sand for slow sand filter" for a value of Rs. 21,43,200/-. As per the conditions contained in the agreement the work was to commence 23.5.1987 and was to be completed within one year. During the subsistence of the contract disputes arose between the parties as a consequence of which the Respondent moved an application under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 (for brevity "the Act") for appointment of an arbitrator. After the learned Arbitrator was appointed, he proceeded with the arbitration and, eventually, passed an award on 20.1.2009 allowing the claim of the Respondent by awarding a total sum of Rs. 32,62,415.30 with a further stipulation that the said sum shall carry interest at the rate of 18% per annum from the year 1988. The Appellant herein filed an objection under Section 34 of the Act to set aside the award dated 20.1.2009 in Arbitration Petition No. 32 of 2003 on many a ground. The learned District Judge, Kanpur, vide order dated 30.3.2013, rejected the application which was the subject-matter of Misc. Case No. 40/70 of 2009.