- (1.) The principal question involved in this appeal arising out of a judgment and order dated 08.06.2005 passed by the High Court of Delhi in Writ Petition (Civil) No.10284 of 2005 revolves round a dispute as to whether the provisions of the Arbitration and Conciliation Act, 1996 (for short, 'the 1996 Act') would prevail over the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, 'SICA').
(2.) A sum of Rs. 5,00,00,000.00 (Rupees five crores) by way of an Inter Corporate Deposit (ICD) was advanced by Appellant to Respondent Company. It committed a default in the payment thereof. The agreement contained an arbitration clause which was invoked. The learned Arbitrator made an award on or about 06.05.2004 in favour of the appellant for a sum of Rs. 6,72,63,015.00, directing : "I, therefore, in the circumstances, make the following Award : i) The claimant is entitled to receive from the respondents and the respondents are jointly and severally liable to pay Rs. 6,72,63,015.00 up to the date of reference; ii) The claimant will also be entitled to interest at the contractual rate of 21% p.a. from the date of reference i.e. 15.4.2002 till the date of Award and thereafter i.e. from the date of Award till the date of payment with simple interest @ 18% p.a. However, if the entire amount is paid within three months from the date of the award, the rate of interest from the date of Award till the date of payment shall stand reduced to 12% p.a. iii) The claimant will also be entitled to costs of arbitration which are fixed at Rs. 2,00,000.00. In the course of the proceedings I had passed two interim orders restraining the respondent no.1 from transferring or alienating their fixed as well as movable assets. Both those orders shall continue to operate till the full payment of the amount awarded under this Award."
(3.) Appellant also filed an application before the High Court of Allahabad for winding up of the respondent Company. The said application was admitted and an order of winding up was passed on 12.03.2004.;