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High Court of DelhiEX.P./300/2014

Sjvn Ltd v. M/S Jaiprakash Hyundai Consortium

2024-03-07Hon'Ble Mr. Justice Prateek Jalan9 pages

$~7 to 13, 40 & 41 *

IN THE HIGH COURT OF DELHI AT NEW DELHI

7.

+ EX.P. 300/2014 & EX.APPL.(OS) 951/2015 SJVN LTD ..... Decree Holder versus M/S JAIPRAKASH HYUNDAI CONSORTIUM ..... Judgement Debtor 8.

+ EX.P. 319/2015 JAIPRAKASH HYUNDAI CONSORTIUM (JHA) ..... Decree Holder versus SJVN LIMITED ..... Judgement Debtor 9.

+ EX.P. 320/2015 JAIPRAKASH HYUNDAI CONSORTIUM (JHC) HOLDER ..... Decree Holder versus SJVN LIMITED ..... Judgement Debtor 10.

+ EX.P. 325/2015, EX.APPL.(OS) 417/2016 & 418/2016 JAIPRAKASH HYUNDAI CONSORTIUM (JHC) ..... Decree Holder versus SJVN LIMITED ..... Judgement Debtor 11.

+ OMP (ENF.) (COMM.) 20/2020 JAIPRAKASH HYUNDAI The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

CONSORTIUM (JHC) ..... Decree Holder versus SJVN LIMITED ..... Judgement Debtor 12.

+ OMP (ENF.) (COMM.) 3/2020 SJVN LTD ..... Decree Holder versus JAIPRAKASH HYUNDAI CONSORTIUM [JHC] ..... Judgement Debtor 13.

+ OMP (ENF.) (COMM.) 4/2020 SJVN LTD.

..... Decree Holder versus JAIPRAKASH HYUNDAI CONSORTIUM [JHC] ..... Judgement Debtor Appearance:

Mr. Lokesh Sawhney and Mr. Rohit Kumar, Advocates for JHC. Mr. Uttam Dutt, Mr. Rajiv Singh, Mr. Sonakshi Singh, Mr.Kumar Bhaskar, Mr. Aman Sanjeev Sharma, Advocates for SJVNL.

CORAM:

HON'BLE MR. JUSTICE PRATEEK JALAN

O R D E R

% 07.03.2024 1.

These seven petitions relate to execution of awards passed upon adjudication of disputes under the same contract dated 24.06.1993 between the parties with regard to civil work in the project of Satluj Jal The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Vidyut Nigam Limited ["SJVNL"].

2.

By an order dated 20.02.2024, the Court had considered the contention of the parties with regard to adjustment of the awarded amount, in terms of a letter dated 06.06.2015 from JHC to SJVNL, and observed as follows:

"8. I am of the view that partial reliance upon the aforesaid communication and the table is impermissible. If it is SJVNL's contention, relying upon this table, that the amounts due to JHC were adjusted against the adhoc payments made and recoverable by SJVNL, the communication equally reflects that the awards in favour of SJVNL were also adjusted against payments due to JHC from it. SJVNL therefore has to take a clear position as to whether, according to it, all these six cases were adjusted in terms of this communication. If SJVNL does not wish to proceed on the basis of such adjustment, then all the six awards are required to be executed on their terms, and the parties have to be left free to make any claims against each other, dehors the purported adjustments.

9. Mr. Sawhney states that either of these courses is acceptable to JHC. SJVNL is directed to take a decision and inform the Court on the next date of hearing. An affidavit may be filed by SJVNL by 23.02.2024."

[Emphasis supplied.] 3.

SJVNL has since filed an affidavit dated 23.02.2024. Mr. Uttam Dutt, learned counsel for SJVNL, upon instructions, persists in the submission that the three awards which were in favour of Jaiprakash Hyundai Consortium ["JHC"] stand adjusted against ad-hoc payments made and recoverable by SJVNL, but the awards in favour of SJVNL are not so adjusted.

4.

I do not find this submission to be merited.

5.

As noted in the order dated 20.02.2024, SJVNL's contention regarding adjustment of the awards against it, are based upon a communication dated 06.06.2015 addressed by JHC to it. JHC, in the said The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

communication, took the position [in paragraph 10] that awards of each party against the other stood adjusted, and contested the necessity of filing execution proceedings. It placed a table [Annexure 5] alongwith the said communication, to show the adjustment, which is reproduced below: The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

6.

Section A of the table deals with adhoc payments released by SJVNL against claims by JHC. The total amount of such payments is Rs.56.32 crores. There is no dispute about this. The adjustment of this amount, and other claims settled and accepted by the parties, are contained in Section B of the table. Six out of seven claims, which are the subject matters of these execution proceedings [excluding claim No.14 in OMP (ENF.) (COMM.) 21/2020] are reflected in this table, details whereof are as follows:

Case No.

Dispute No.

Serial Number in above table EX.P. 300/2014 O.M.P.(ENF)(COMM) 3/2020 O.M.P. (ENF)(COMM) 4/2020 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

EX.P. 319/2015 EX.P. 320/2015 32A EX.P. 325/2015 25,26 18,19 7.

The letter dated 06.06.2015 ultimately records that a sum of Rs. 31,71,36,812/- was payable by SJVNL to JHS as on that date. Mr. Dutt submits, that even as on that date, Serial No. 34 of the table reflects a claim asserted by JHC of Rs. 33,89,48,000/-, on account of payment against pending court cases. Mr. Dutt submits that these claims, against cases which remain pending in court, were never adjusted, and in fact it is the case of SJVNL that none of the awards in favour of SJVNL, were adjusted against any dues to JHC.

He submits that subsequent correspondence between the parties would show that adjustments reflected in JHC's communication dated 06.06.2015, were not accepted by SJVNL.

8.

If that is the position, the contention of SJVNL now is that the awards which were against it, were adjusted against the adhoc payments of Rs. 56.32 crores, but the awards which were in its favour were not adjusted against the amounts due to JHC. This is not the position reflected by JHC's communication dated 06.06.2015, and I have not been shown any other evidence with regard to adjustment of the awards in favour of JHC. I am of the view that this partial reliance upon JHC's communication dated 06.06.2015 is impermissible. The clear position taken in the communication of JHC is that all the awards stood adjusted and the execution proceedings filed by SJVNL were unnecessary. This position has been controverted by SJVNL. At the very least, the position which emerges is that the parties did not achieve consensus ad-idem as to The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

the mutual adjustments.

9.

In this view of the matter, I am of the view that the awards under execution, are required to be executed dehors the purported adjustments, leaving it open to the parties to make any surviving claims against each other. As none of the awards are being adjusted against any other dues from the parties to each other, all seven awards can be executed by setting them off against each other.

10.

At this stage, with regard to EX.P. 319/2015, Mr. Dutt submits that the execution proceedings are barred by limitation as the order of the Dispute Resolution Board, which is sought to be enforced, was made on 09.08.2002, whereas enforcement petition was filed on 15.07.2015, well after the limitation period of 12 years. Mr. Sawhney states that the said petition may be segregated and kept for hearing separately, along with two other petitions between the parties [OMP (ENF.) (COMM.) 199/2021 and OMP (ENF.) (COMM.) 201/2021], in which SJVNL has raised the same issue.

11.

Mr. Lovkesh Sawhney, learned counsel for the JHC, has handed over a table which computes the seven awards with interest until 07.03.2024. We exclude from consideration the award in EX.P. 319/2015, which has been segregated above. Total of the three awards in favour of SJVNL has been computed at Rs. 24,75,35,452/- and the total of the awards in favour of JHC has been computed as Rs. 24,46,25,622/-. The net of these sums is an amount of Rs. 29,09,830/-, due from JHC to SJVNL. Upon payment of this sum, six enforcement proceedings would stand satisfied. Mr. Sawhney states that the said amount will be tendered to SJVNL by 12.03.2024, by way of a demand draft. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

12.

EX.P.

300/2014, EX.P.

320/2015, EX.P.

325/2015, OMP(ENF.)(COMM) 3/2020, OMP(ENF.)(COMM) 4/2020 & OMP(ENF.)(COMM) 20/2020, alongwith all pending applications therein, are disposed of in these terms.

13.

List EX.P. 319/2015 alongwith OMP (ENF.) (COMM.) 199/2021 & OMP (ENF.) (COMM.) 201/2021, on 11.07.2024. PRATEEK JALAN, J MARCH 7, 2024 SS/ The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.