Allowed

Re Sustainability Limited v. Ajmer Municipal Corporation

Rajasthan HC7 Mar 2025CW/18178/2024

Case brief

AI extract

What is this about?

The High Court quashed a commercial court order that denied release of 25% of a deposited arbitral award due to the claimant's name change. Directing the commercial court to release the funds, the Court held that a name change does not alter the company's identity or rights under the award.

What did the court decide?

The impugned order declining to release 25% of the deposit is quashed and set aside; the Commercial Court is directed to release the 25% amount to the petitioner.

Re Sustainability Limited Vs Ajmer Municipal Corporation — Arbitration | Rajasthan HC (2025)

¶1

[2025:RJ-JP:10556]

¶2

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

¶3

S.B. Civil Writ Petition No. 18178/2024

¶4

Re Sustainability Limited, (Formerly Known As Ramky Enviro Engineers Limited) Earlier Having Earlier Address At 13Th Floor, Ramky Grandiose, Ramky Towers, Gachibowli, HyderabadTelangana And Presently Having Its Registered Office At Level 11B, Aurobindo Galaxy, Hyderabad Knowledge City, Hitech City Road, Hyderabad, Telangana- 500081 Through Its Authorized Representative Mr. Gomad Ram S/o Shri Jetha Ram, Aged About 34 Years, R/o 228, Genwa Garah, Tehsil Shergarh, Jodhpur, Rajasthan.

¶5

----Petitioner

¶6

Versus

¶7

Ajmer Municipal Corporation, Through Its Chief Executive Officer Having Its Office At Prithvi Raj Road, Ajmer

¶8

----Respondent

¶9

For Petitioner(s)	: Dr. Sachin Acharya, Sr. Adv. assisted
	byMr. Shridhar Mehta
For Respondent(s)	: Mr. BrijKishore Sharma

¶10

HON'BLE MR. JUSTICE SUDESH BANSAL

¶11

Order

¶12

07/03/2025

¶13

Heard counsel for both parties and perused the record. 2. Petitioner, by means of filing instant writ petition under Article 227 of the Constitution of India, has challenged the order dated 12.09.2023 passed by the Commercial Court in Civil Misc. Case No.01/2019 to the limited extent of denying to release 25% of the awarded amount under the arbitral award dated 07.07.2018.

¶14

Undisputedly, an arbitral award dated 07.07.2018 was passed in favour of "Ramky Enviro Engineers Ltd." whereagainst respondent - Ajmer Municipal Corporation filed an application under Section 34 of the Arbitration and Conciliation Act, but same

[2025:RJ-JP:10556]

[CW-18178/2024]

(2 of 6)

has been dismissed vide order dated 25.03.2021 and thereagainst the respondent Municipal Corporation Ajmer has preferred a D.B. CMA No. 1807/2021, which is pending before the Rajasthan High Court.

¶19

It appears that during pendency of the Civil Misc. Appeal, respondent-Corporation prayed for staying the execution of award whereupon the High Court directed to deposit the entire amount of Arbitral award vide order dated 01.08.2022 and on such condition, the arbitral award was stayed.

¶20

Respondent preferred Special Leave to Appeal (C) No.20080/2022 before the Hon'ble Supreme Court. The Hon'ble Supreme Court vide order dated 18.11.2022, modified the stay order dated 01.08.2022 with direction that respondentCorporation shall deposit 50% of the arbitral award out of which 25% shall be released to the claimant-Company, on furnishing Bank Guarantee and rest 25% shall be kept in any nationalized Bank, which shall be subject to outcome of the appeal pending before the Rajasthan High Court.

¶21

It has been pleaded and argued by learned Senior Counsel appearing on behalf of the petitioner that in the meanwhile, the name of claimant Company Viz. "Ramky Enviro Engineers Ltd." has been changed as "RE Sustainability Ltd." and in support thereof, a certificate dated 10.02.2022, issued by the Government of India , Ministry of Corporate Affairs has been enclosed with the writ petition as Annexure-5.

¶22

Learned Senior Counsel submits that the Commercial Court, although, by the order impugned dated 12.09.2023 has allowed to change the name of Company from "Ramky Enviro Engineers Ltd."

[2025:RJ-JP:10556]

[CW-18178/2024]

(3 of 6)

to "RE Sustainability Ltd." and such change of name has also been permitted by the High Court in the pending DB CMA No. 1807/2021, yet the Commercial Court declined to release 25% of the arbitral award to the petitioner-Company just due to change of its name from from "Ramky Enviro Engineers Ltd." to "RE Sustainability Ltd."

¶27

Learned Senior Counsel has pointed out that after passing the order dated 12.09.2023 by the Commercial Court denying to release the 25% of the arbitral award to the petitioner-Company only on account of change of its name, petitioner-Company moved a misc. application before the Hon'ble Supreme Court seeking correction/ clarification in the order dated 18.11.2022 to change the name of Company whereupon the Hon'ble Supreme Court disposed of the misc. application vide order dated 05.04.2024 with liberty to petitioner to challenge the order before the High Court. 9. It has also been pointed out by the learned Senior Counsel that petitioner moved a misc. application before the Division Bench of the High Court in the pending DB CMA No.1807/2021, but same has been disposed of vide order dated 19.10.2024, granting liberty to petitioner to take appropriate legal remedy against the order dated 12.09.2023 passed by the Commercial Court, hence, in such circumstances, petitioner has filed the present writ petition for issuing directions to the Commercial Court to release 25% amount of the arbitral award to the petitionerCompany viz. "RE Sustainability Ltd." formerly known as "Ramky Enviro Engineers Ltd." in compliance of the order dated 18.11.2022 passed by the Hon'ble Supreme Court.

[2025:RJ-JP:10556]

[CW-18178/2024]

(4 of 6)

Learned counsel appearing on behalf of respondentMunicipal Corporation, Ajmer has opposed the writ petition, however, does not dispute that in the pending DB CMA No. 1807/2021, the name of Company has been allowed to change from "Ramky Enviro Engineers Ltd." to "RE Sustainability Ltd." vide order dated 15.05.2023, on the basis of certificate dated 10.02.2022, issued by the Government of India, Ministry of Corporate Affairs. Similarly, it has not been disputed that the Commercial Court itself has permitted change of name of petitioner-Company as "RE Sustainability Ltd." from "Ramky Enviro Engineers Ltd." vide order dated 12.09.2023 itself and dismissed the application under Section 151 CPC filed by the Municipal Corporation Ajmer and that part of the order, has not been challenged by the respondent-Corporation.

¶32

It is noteworthy that respondent- Municipal Corporation, Ajmer has deposited 50% amount of the arbitral award dated 07.07.2018 before the Commercial Court in compliance of the order dated 18.11.2022 passed by the Hon'ble Supreme Court in Special Leave to Appeal (C) No. 20080/2022 and out of which 25% has been kept in FDR, but the remaining 25% is laying deposited before the Commercial Court itself.

¶33

Having considered the rival contentions of counsel for both parties and taking into consideration the undisputed certificate dated 10.02.2022 (Ann-5) issued by the Government of India, Ministry of Corporate Affairs, certifying the change of name of Company from "Ramky Enviro Engineers Ltd." to"RE Sustainability Ltd." as also in view of the fact that on the basis of such certificate, the Division Bench of the High Court vide order dated

[2025:RJ-JP:10556]

[CW-18178/2024]

(5 of 6)

15.05.2023 passed in DB CMA No. 1807/2021, has also permitted change of name of Company from "Ramky Enviro Engineers Ltd." to "RE Sustainability Ltd." so also the Commercial Court through the order impugned dated 12.09.2023 has permitted the change of name of Company from "Ramky Enviro Engineers Ltd." to "RE Sustainability Ltd." Yet the 25% of arbitral award, deposited by respondent-Municipal Corporation, Ajmer has been declined to be disbursed to the petitioner-Company, only due to change of its name. The Commercial Court ought to have release the 25% amount of the arbitral award to the petitioner-Company, which indeed is the claimant Company, in whose favour arbitral award was passed and mere change of name and address of registered office of the Company does not affect the basic structure and formation of the Company. It is noteworthy that except change of name and address of registered office of the Company, no other changes in the basic structure or in the constitution of claimant Company has been pointed out. Thus, the denial to release 25% amount of the arbitral award, by the Commercial Court is wrong and highly technical, which cannot be countenanced. The order impugned, to this extent is perverse and suffers from jurisdictional error. Since the Commercial Court declined to release 25% amount to the petitioner-Company only for the technical reasons, therefore, this Court do so and permits to release the deposited 25% amount of the arbitral award to the petitioner-Company. 13. As a result, instant writ petition succeeds. The impugned order dated 12.09.2023 to the extent of declining to release 25% amount of the arbitral award to the petitioner is hereby quashed and set aside. The Commercial court is directed to release 25%

(6 of 6)

[2025:RJ-JP:10556]

[CW-18178/2024]

amount of the arbitral award, already deposited by the respondent-Municipal Corporation, Ajmer, to the petitionerCompany, viz. "RE Sustainability Ltd." formerly known as "Ramky Enviro Engineers Ltd." in terms of the order dated 18.11.2022 passed by the Hon'ble Supreme Court in Special Leave to Appeal (C) No.20080/2022.

¶42

Stay application and other pending applications), if any, stand disposed of.

¶43

(SUDESH BANSAL),J

¶44

NITIN /73

Re Sustainability Limited v. Ajmer Municipal Corporation

Case brief

What is this about?

What did the court decide?

Re Sustainability Limited v. Ajmer Municipal Corporation

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Sunil Choudhary S/O Shri Shubhkaran Choudhary Vs Jaipur Development Authority

Manna Lal Vs State and Ors.

Swastik Plyboard Limited Vs the Regsitrar of Trade Marks

Niranjan Lal Joshi Vs Pramod Kumar

Sunalpha Energy Cleantech Private Limited Vs Tileco Natural Stones Private Limited

Praveen Meena S/O Shri Rameshwar Meena Vs State of Rajasthan