[Contempt Of Court] Delhi High Court Directs International Avenue To Deposit Rs. 5 Crores Within One Week Considering Due Of 15 Crores Arbitral Award

Brief Facts:

The Judgment Debtor, International Avenue, filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), challenging the arbitral award. Conversely, the Decree Holder, Delhi Transport Corporation (DTC), filed a petition under Section 36 of the Arbitration Act seeking enforcement of the same arbitral award dated.

Further, the High Court, through an order dated 6th February 2020, directed International Avenue to deposit a sum of Rs. 5 crores with the Registrar General of the Court within 12 weeks, considering the substantial amount due under the award. Subsequently, on 4th August 2022, the High Court issued another directive, instructing International Avenue to deposit Rs. 5,00,00,000/- within six weeks, emphasizing the urgency of compliance.

Despite repeated directions from the High Court and acknowledgment of non-compliance, International Avenue failed to adhere to the orders. In an order dated 22nd November 2022, the High Court recorded the statement of International Avenue, highlighting issues with calculations but noting the absence of any compliance with the orders.

Observations by the High Court:

The High Court observed that there was a consistent pattern of non-compliance by International Avenue with the directives issued in the enforcement petition. It held that this repeated failure to adhere to court orders prima facie constitutes contempt of court.

Given the persistent non-compliance with the directions outlined in the enforcement petition, the High Court held the petition under Section 34, filed by International Avenue, was no longer maintainable.

Further, the High Court extended one last opportunity to International Avenue to comply by depositing a sum of Rs. 5 crore within a week. It held that failure to meet this deadline would result in the automatic dismissal of the petition under Section 34.

Additionally, the High Court directed Mr. Ashit Datt, representing International Avenue, to be physically present in court for the next hearing.

The case is scheduled to be listed for the next hearing on 14th August 2024.

Case Title: International Avenue Vs Delhi Transport Corporation

Citation: 2024 LiveLaw (Del) 561

Case Number: O.M.P. (COMM) 495/2018 and I.A. 16836/2018, 16837/2018, 16839/2018

Advocate for the Petitioner: Mr. Pallav Saxena and Mr. Nipun Sharma

Advocate for the Respondent: Ms. Avnish Ahlawat with Mr. N. K. Singh and Mr. Mohnish Sehrawat

Click Here To Read/Download Order