Executing Court Erred In Seeking Transfer Certificate To Execute Award When It Had Jurisidiction To Entertain Application: Rajasthan HC Sets Aside Order

The Rajasthan High Court bench of Justice Narendra Singh Dhaddha has held that the Executing Court had committed an error in directing to furnish the transfer certificate for executing an award when it already had jurisdiction to hear the application.Court said that when the property was situated in Jaipur, the executing court had jurisdiction to entertain the execution application. So, the orders dated 12.10.2018 and 13.03.2019 passed by the Executing Court deserve to be set aside, the court added. Brief Facts of the case: The dispute arose with respect to a lease agreement entered for a period of 9 years with a lock-in period of 4 years at the monthly rent of Rs. 1,45,986/-. The petitioner deposited an amount of Rs. 8,75,916/- as a part of interest free security. After completion of the lock-in period of 4 years, the petitioner intimated the respondent of its intention to vacate the premises in dispute. Then, the petitioner vacated the premises and handed over the possession of the premises to the respondent and sought refund which was agreed to be made within 7 days from the date of execution of the document. The respondent failed to pay the security amount of Rs. 8,75,916/-. Thus, the petitioner invoked the arbitration clause, and a sole arbitrator was appointed to adjudicate the dispute. The Arbitrator passed an award in favour of the petitioner and then the petitioner filed an execution application. Then, the respondent filed the objection under Order 21 Rule 11 CPC regarding maintainability of the execution application and the Executing Court directed the petitioner to file transfer certificate for transferring the execution petition to the Additional District and Sessions Judge. Thereafter, the petitioner filed an application under Section 114 and Order 41 CPC read with Section 151 CPC for reviewing the order, but the Executing Court dismissed the application filed by the petitioner. Aggrieved by this, the petitioner filed a civil writ petition challenging the order passed by the Additional District Judge. Observation of the Court: The court held that the Executing Court had committed an error in directing to furnish the transfer certificate. When the property was situated in Jaipur, executing court had jurisdiction to entertain the execution application. So, the orders dated 12.10.2018 and 13.03.2019 passed by the Executing Court deserve to be set aside. Then, the court allowed the petition, and the orders dated 12.10.2018 and 13.03.2019 passed by the Executing Court are set aside and Executing Court is directed to decide the execution application filed by the petitioner. Case Title: Gas Authority of India Limited versus M/s Mahima Real Estate (P) Limited Case Number: S.B. Civil Writ Petition No. 8965/2019Citation: 2025 LiveLaw (Raj) 128 Counsel for the Petitioner: Mr. Sandeep Singh Shekhawat, Adv Counsel for the Respondent: None Date of Judgment: 11.03.2025 Click Here To Read/Download The Order

Executing Court Erred In Seeking Transfer Certificate To Execute Award When It Had Jurisidiction To Entertain Application: Rajasthan HC Sets Aside Order

Soumya Chakrabarti

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