Disposed

Ncc Vee Jv v. National Highways Authority of India

Delhi HC16 Feb 2024OMP (ENF.) (COMM.)/39/2021

Case brief

AI extract

What is this about?

Enforcement of arbitration awards of about Rs 13.80 crore; parties had settled for Rs 36.11 crore without bifurcating principal and interest. The court rejected the judgment-debtor's self-serving bifurcation to deduct tax on interest and directed payment of the outstanding Rs 1.08 crore within ten days, failing which execution could be revived.

What did the court decide?

Outstanding Rs 1.08 crores directed to be paid within ten days; decree-holder may revive execution if unpaid.

Ncc Vee Jv Vs National Highways Authority of India — Execution and Attachment | Delhi HC (2024)

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$~15

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- OMP (ENF.) (COMM.) 39/2021

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NCC VEE JV ..... Decree Holder Through: Ms Malvika Trivedi, Sr. Adv. with Mr Ashish Chaudhary, Mr Shailendra Slaria and Ms Sujal Gupta, Advs.

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versus

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NATIONAL HIGHWAYS AUTHORITY OF INDIA

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..... Judgement Debtor Through: Mr S. Nandakumar and Ms. Deepika Nandakumar, Advs.

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CORAM: HON'BLE MR. JUSTICE JASMEET SINGH

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O R D E R % 16.02.2024

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This is a petition seeking enforcement of the Award dated 08.10.2020 and 08.03.2021 wherein the claims of the decree-holder was allowed to the tune of Rs. 13,80,17,478/- along with interest at the rate of 12% per annum. 2. Pursuant to the filing of the execution petition, the parties herein entered into a Settlement Agreement dated 24.08.2021. The relevant clause of the said Settlement Agreement reads as under:

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“2. THE AMOUNT OF FULL AND FINAL SETTLEMENT

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2.1. Parties hereby agree that amount of full and final settlement of the disputes is Rs. 36.11 Cr.

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/02/2024 at 12:48:26

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2.2. For avoidance of doubt, it is agreed between both the parties that there are no past, present or outstanding liabilities, compensation, claims or counter claims pertaining to the project made by either Party.

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3. OBLIGATIONS OF PARTIES

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3.1. OBLIGATIONS OF NHAI

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3.1.1. To pay an amount of Rs.36.11 Cr. against the Arbitration Awards dated 08.10.2020 and 08.03.2021 within 20 days of signing of this Agreement.”

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A perusal of the above clause shows that the judgment-debtor had agreed to pay an amount of Rs. 36.11 crores against settlement of the amounts awarded in Arbitration Awards dated 08.10.2020 and 08.03.2021 within 20 days of signing of the agreement. The settlement clearly shows that there was no bifurcation of the settlement amount as principal and interest.

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Subsequently, the judgment-debtor wrote a letter dated 12.10.2021 wherein some deductions were sought to be made out of Rs. 36.11 crores on account of Labour Cess and GST.

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The decree-holder vide Letter No. 1289 dated 29.09.2021 agreed to deduction of TDS of Rs. 72,22,000/- on Income Tax and Conciliation Fee of Rs. 5 lakhs.

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Thereafter, the judgment-debtor on 09.03.2022 has addressed a letter to the decree-holder which reads as under:

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/02/2024 at 12:48:26

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This is a digitally signed order.

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

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The Order is downloaded from the DHC Server on 22/02/2024 at 12:48:26

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It is this letter which is now the subject matter of the execution petition.

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A perusal of the settlement agreement clearly shows that the judgment-debtor has agreed to pay a sum of Rs. 36.11 crores in full and final settlement. The settlement agreement does not show that as to what amount of Rs. 36.11 crores is towards Principal Agreement and what amount is towards interest. Hence, the bifurcation by the judgment-debtor of Rs. 36.11 crores into Rs. 21,02,11,662/- as principal amount and Rs. 15,09,10,222/towards interest is not agreeable to the decree-holder and is a self serving document. The same cannot be accepted. Hence, the judgment-debtor cannot deduct income tax at 10% on the interest amount.

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For the said reasons, the present petition is disposed of in terms of the settlement agreement dated 24.08.2021 arrived between the parties and consequently, the outstanding amount of Rs. 1.08 crores due and payable to

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/02/2024 at 12:48:26

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the decree-holder is directed to be paid within a period of ten days from today.

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In case the amount is not paid, the decree-holder shall be entitled to revive the present execution petition.

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It is clarified that if there is any liability on account of the income tax on interest, the same shall be borne by the decree-holder.

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The letter dated 09.03.2022 handed over in Court today is taken on record.

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JASMEET SINGH, J

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FEBRUARY 16, 2024 sr

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Click here to check corrigendum, if any

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This is a digitally signed order.

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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/02/2024 at 12:48:26

Ncc Vee Jv v. National Highways Authority of India

Case brief

What is this about?

What did the court decide?

Ncc Vee Jv v. National Highways Authority of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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