MORGAN SECURITIES AND CREDIT PVT LTD Vs. MODI RUBBER LTD
LAWS(SC)-2006-12-97
SUPREME COURT OF INDIA (FROM: DELHI)
Decided on December 14,2006

MORGAN SECURITIES AND CREDIT PVT. LTD. Appellant
VERSUS
MODI RUBBER LTD. Respondents


Cited Judgements :-

SNEHADEEP STRUCTURES PRIVATE LIMITED VS. MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED [LAWS(SC)-2010-1-97] [REFERRED TO]
JEEWAN ENTERPRISES, THROUGH ITS PROPRIETOR RAM JEEWAN VS. DIRECTOR, UTTARANCHAL MANDI PARISHAD,; U P RAJYA KRISHI UTPADAN MANDI PARISHAD THROUGH ITS DIRECTOR AND DEPUTY DIRECTOR (CONSTRUCTION), U P RAJYA KRISHI UTPADAN MANDI PARISHAD [LAWS(UTN)-2007-3-88] [REFERRED]
NABHA INDUSTRIES LTD VS. PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION [LAWS(P&H)-2008-11-109] [REFERRED]
COMPUTER SKILL LTD VS. CHAIRMAN AND MD [LAWS(GJH)-2011-3-18] [REFERRED TO]
GALATEA LTD VS. SHREE KRISHNA EXPORTS [LAWS(GJH)-2021-12-55] [REFERRED TO]
MADHAV INSTITUTE OF TECHNOLOGY AND SCIENCE VS. M/S. CIMMCO BIRLA LTD. GWALIOR [LAWS(MPH)-2013-5-91] [REFERRED TO]
BHUSHAN STEEL LTD VS. SINGAPORE INTERNATIONAL ARBITRATION CENTRE [LAWS(DLH)-2010-6-30] [REFERRED TO]
TATA CAPITAL FINANCIAL SERVICES LIMITED VS. RAMASARUP INDUSTRIES LIMITED [LAWS(BOM)-2013-2-72] [REFERRED TO]
GALA TEA LTD VS. SHREE KRISHNA EXPORT [LAWS(GJH)-2022-2-1486] [REFERRED TO]
EMAAR MGF LAND LTD. VS. AFTAB SINGH [LAWS(DLH)-2017-11-283] [REFERRED TO]
GOYAL MG GASES PVT LTD VS. SBQ STEELS LTD [LAWS(DLH)-2016-8-535] [REFERRED]
INDIAN BANK VS. COMMERCIAL TAX OFFICER OFFICE OF CTO NAVALPUR RANIPET [LAWS(MAD)-2008-9-357] [REFERRED TO]
KANAKADHARA SPINNING MILLS P LTD VS. REGISTRAR BOARD FOR INDUSTRIAL FINANCIAL RECONSTRUCTION B I F R [LAWS(MAD)-2009-7-406] [REFERRED TO]
SOMA PAPERS & INDUSTRIES LTD VS. GTC INDUSTRIES LTD [LAWS(BOM)-2001-4-99] [REFERRED]
IN RE: INTERPLAY BETWEEN ARBITRATION AGREEMENTS UNDER THE ARBITRATION AND CONCILIATION ACT 1996 AND THE INDIAN STAMP ACT 1899 VS. IN RE: INTERPLAY BETWEEN ARBITRATION AGREEMENTS UNDER THE ARBITRATION AND CONCILIATION ACT 1996 AND THE INDIAN STAMP ACT 1899 [LAWS(SC)-2023-12-20] [REFERRED TO]
NOBLE AQUA PVT LTD VS. STATE BANK OF INDIA [LAWS(ORI)-2008-2-1] [REFERRED TO]
INDIA HOUSEHOLD AND HEALTHCARE LTD VS. L G HOUSEHOLD AND HEALTHCARE LTD [LAWS(SC)-2007-3-117] [REFERRED TO]
LML LIMITED VS. UNION OF INDIA AND OTHERS [LAWS(SC)-2013-8-142] [REFERRED TO]
M/S UNITED INDIA INSURANCE COMPANY LIMITED VS. MOST. MANGLI DEVI AND OTHERS [LAWS(PAT)-2017-1-39] [REFERRED TO]
BRIJ LAL VS. H.R.T.C. [LAWS(HPH)-2008-3-33] [REFERRED TO]
BINA MODI VS. LALIT MODI [LAWS(DLH)-2020-3-1] [REFERRED TO]
SINGER INDIA LTD. VS. TVS SEWING NEEDLES LIMITED & ORS. [LAWS(DLH)-2016-3-3] [REFERRED TO]
M K MODI VS. U K MODI [LAWS(DLH)-2010-5-65] [REFERRED TO]
INTERNATIONAL FINANCE CORPORATION WASHINGTON VS. BIHAR SPONGE AND IRON LTD [LAWS(DLH)-2010-5-103] [REFERRED TO]
ASHOK ORGANIC INDUSTRIES LTD VS. ASSET RECONSTRUCTION COMPANY [LAWS(BOM)-2008-1-161] [REFERRED TO]
COMMISSIONER OF INCOME TAX BHOPAL VS. RALSON INDUSTRIES LTD [LAWS(SC)-2007-1-44] [REFERRED TO]
UJVN LIMITED VS. HYDEL CONSTRUCTION PVT. LTD. AND ORS. [LAWS(UTN)-2015-6-35] [REFERRED TO]
M/S MADRAS PETROCHEM LTD.& ANR. VS. BIFR & ORS. [LAWS(SC)-2016-1-74] [REFERRED TO]
OMAN INTERNATIONAL BANK VS. APPELLATE AUTHORITY FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION [LAWS(DLH)-2010-5-55] [REFERRED TO]
SYNDICATE BANK VS. MULLANGIE SPINTEX PVT LTD [LAWS(DLH)-2010-9-36] [REFERRED TO]
SALEM TEXTILES LIMITED VS. AUTHORIZED OFFICER, M/S.PHOENIX ARC PRIVATE LTD [LAWS(MAD)-2013-4-72] [REFERRED TO]
B.K. MODI VS. MORGAN SECURITIES & CREDITS PVT LTD [LAWS(DLH)-2009-4-248] [REFERRED TO]
PRINCIPAL CHIEF ENGINEER VS. M/S. MANIBHAI AND BROTHERS (SLEEPER) [LAWS(GJH)-2016-6-303] [REFERRED TO]
NAZIMUDDIN KHAN VS. LLOYD INSULATION(S) INDIA LIMITED [LAWS(CAL)-2017-2-75] [REFERRED TO]
MSTC LTD VS. MEHERKIRAN ENTERPRISES LTD [LAWS(CAL)-2016-8-62] [REFERRED TO]
I O C LTD VS. DURGA ROADLINES HARISH CHANDULAL THACKER [LAWS(GJH)-2012-5-153] [REFERRED TO]
INDIA CEMENT CAPITAL LIMITED VS. AUTO PINS LTD [LAWS(MAD)-2013-3-222] [REFERRED TO]
ARAVALI INFRAPOWER LTD. VS. MICHIGAN ENGINEERS PVT. LTD. AND ORS. [LAWS(DLH)-2016-1-326] [REFERRED TO]
MOREPEN LABORATORIES LTD VS. MORGAN SECURITIES AND CREDITS PVT LTD [LAWS(DLH)-2008-8-16] [REFERRED TO]
LEELA HOTELS LTD VS. HOUSING AND URBAN DEVELOPMENT CORPORATION LTD [LAWS(SC)-2011-11-12] [REFERRED TO]
YASHDEEP TREXIM VS. BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION [LAWS(CAL)-2011-1-33] [REFERRED TO]
BINA MODI VS. LALIT KUMAR MODI [LAWS(DLH)-2020-12-106] [REFERRED TO]
M.V. CAPE CLIMBER VS. GLORY WEALTH SHIPPING PVT. LTD. [LAWS(GJH)-2015-7-29] [REFERRED TO]


JUDGEMENT

- (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.


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