Disposed

Kai Tech Constructions Pvt. Ltd., M.C. Chachappan v. State of Goa, Thr. the Executive Engineer, Works Division I, Ward, Panaji

Bombay HC4 Apr 2022MCA/24/2022

Case brief

AI extract

What is this about?

The court allowed the applicant to withdraw a deposited sum of Rs. 10 lakhs with accrued interest from an arbitration appeal, conditioned upon providing an unconditional bank guarantee to secure the amount for the event of the appellant succeeding.

What did the court decide?

Leave granted to withdraw Rs. 10 lakhs with interest provided unconditional bank guarantee of a nationalized bank is furnished.

Kai Tech Constructions Pvt. Ltd., M.C. Chachappan Vs State of Goa, Thr. the Executive Engineer, Works Division I, Ward, Panaji — Bombay HC (2022) — LawSathi Research

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53-MCA-24-2022.ODT

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Vinita

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IN THE HIGH COURT OF BOMBAY AT GOA.

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MISC CIVIL APPLICATION NO.24 OF 2022

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APPEAL UNDER ARBITRATION NO. 2 OF 2022.

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KAI TECH CONSTRUCTIONS PVT. LTD., M.C. CHACHAPPAN VS

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STATE OF GOA, THR. THE EXECUTIVE ENGINEER, WORKS DIVISION I, WARD, PANAJI

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...Applicant.

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...Respondents.

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Mr. K. Morajkar, Advocate for the applicant. Mr. M. Salkar, Govt. Advocate for the respondents.

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1. By this application, the respondent in Appeal Under

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Arbitration Act no.2/2022 seeks leave to withdraw a sum of Rs.10 lakhs along with accrued interest which is lying deposited pursuant to an order dated 7.9.2021.

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2. The learned Counsel for the appellant submits that in the

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Page 1 of 3

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53-MCA-24-2022.ODT

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event the amount is to be withdrawn, it will have to be secured in a manner such that the money is brought back to the Court in the event appellant succeeds in the appeal challenging an award. The learned Counsel for the applicant today submits that the applicant is willing to provide unconditional guarantee of the nationalized bank to cover the entire amount he seeks to withdraw.

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3. In view of the same, I pass the following order:

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a. If the applicant provides a bank guarantee of a Nationlised bank payable in favour of the Registrar(Judicial) for the entire sum now lying invested in Court and invested by the Registry in the bank.

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b. Registrar shall proceed to encash the fixed deposit an pay over the amount to the applicant one week after the applicant provides an unconditional bank guarantee of a nationalised bank in favour of the Registrar (judicial) of this Court payable on first demand and without protect or reference to the applicant.

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c. Such Bank guarantee shall initially be valid for a period of one year and shall be renewed on the same terms and conditions three months prior to its expiry date.

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d. In the event the bank guarantee is not renewed as directed, the Registrar (Judicial) shall proceed to encash the bank guarantee and collect the money from the bank

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Page 2 of 3

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53-MCA-24-2022.ODT

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without reference to the applicant.

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e. The Bank guarantee shall also provide for incremental interest on the amount sought to be withdrawn and which the bank is required to bring back upon further orders being passed in that respect.

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4. Application stands disposed of.

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A. K. MENON, J.

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VINITA VIKAS NAIK

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Digitally signed by VINITA VIKAS NAIK Date: 2022.04.07 10:53:06 +05'30'

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Page 3 of 3

Kai Tech Constructions Pvt. Ltd., M.C. Chachappan v. State of Goa, Thr. the Executive Engineer, Works Division I, Ward, Panaji

Case brief

What is this about?

What did the court decide?

Kai Tech Constructions Pvt. Ltd., M.C. Chachappan v. State of Goa, Thr. the Executive Engineer, Works Division I, Ward, Panaji

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Parties & counsel

Coram

Case details

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