Delhi High Court Directs Release Of Rs. 16 Crores To Landmark Group As Per 2018 Arbitral Award Against Ansal Group

The Delhi High Court has directed release of over Rs. 16 Crores deposited with the court Registry, in favour of the Landmark Group in the execution petition filed by it seeking enforcement of the arbitral award passed against the Ansal Group. In 2018, an Arbitral Tribunal had awarded a sum of Rs. 46.01 Crores in favour of the Landmark Group against the Ansals in a dispute between the two business groups. Vide order dated 05.01.2022, the Delhi High Court in the execution petition filed by Landmark, had directed Ansals to deposit the entire principal amount of Rs. 46.01 Crores awarded by the arbitrator, along with an additional amount of Rs. 34 Crores. Ansals were directed to deposit the amounts as a condition for vacating the stay order that had been passed in relation to their immovable properties. Noting that Ansals had only deposited a sum of about Rs.16.09 Crores with the court Registry, the court said that Ansals had failed to comply with any of the directions contained in the order, and that their failure to do so pointed out to the lack of liquidity in their hands. The bench of Justice Anup Jairam Bhambhani said, “Considering the conduct of Ansals in the present proceedings, regardless of the justifications offered for such conduct, this court has no hesitation in allowing the present applications, thereby directing the release of the sum of Rs. 13 crores alongwith interest and the sum of Rs.3,09,42,000/- alongwith interest, as lying with the Registry of this court to M/s Landmark Property Development and Company Limited (decree-holder No. 1), being the first constituent of the ‘Landmark Group’ as defined in para 2.5 of arbitral award dated 07.09.2018.” The court passed the order in the application filed by Landmark in the execution proceedings pending before the court. Landmark submitted before the court that it had filed a post-award Section 9 petition under the Arbitration and Conciliation Act, 1996 (A&C Act) to protect the awarded amount. Pursuant to the same, the court vide order dated 25.04.2019, had stayed the enforcement of the award till 31.07.2019, based on the undertaking given by Ansals that they would deposit a sum of about Rs. 46 Crores in the court. Landmark claimed that Ansals had failed to comply with the said undertaking. The court was also informed that separate contempt proceedings had been initiated by Landmark against the Ansals since they had violated the court’s orders by selling certain immovable properties without depositing the sale proceeds in the court. Referring to the facts of the case, the bench noted, “… in partial compliance of the directions contained in judgment dated 05.01.2022 made in the enforcement proceedings, which had directed Ansals to deposit the sum of Rs. 32 crores in addition to another sum of Rs. 34 crores1, Ansals have deposited in court only the following amounts so far : (i) Rs.13 crores vide 05 Demand Drafts dated 08.07.2022 and 11.07.2022; and (ii) Rs. 3,09,42,000/- vide 03 Demand Drafts dated 11.01.2022; and 29.01.2022, that is to say an aggregate sum of Rs.16,09,42,000/-, which Landmark is now seeking to withdraw by way of the applications under consideration.” In the said order dated 05.01.2022, the court had also directed Ansals to maintain liquidity in their account at least to the extent of Rs.120 crores. The court concluded that Ansals had failed to comply with any of the directions contained in the order dated 05.01.2022, and had thereby defaulted on all counts. It further took note that Ansals had also not paid to Landmark the sum of Rs.140 Crores in terms of the settlement signed between the parties, and that only a sum of Rs. 14 Crores was received by Landmark from Ansals under the settlement. The bench thus held, “Ansals are evidently in default of compliance with judgment dated 05.01.2022 made in EX. APPL. (OS) No. 1237 of 2021 in the enforcement petition, inasmuch none of the directions contained in the said judgment have been complied with by Ansals.” It added: “That, as a condition of vacating the stay order that had been passed in relation to their immovable properties, Ansals were obligated to deposit the monies as directed in para 51 (i) and (ii) of judgment dated 05.01.2022; and their failure to do so evidently points to the lack of liquidity in the hands of Ansals.” The court said that even if Landmark was to receive the monies deposited with the Registry, it would have only received an aggregate sum of about Rs. 30.99 Crores as against the principal sum of Rs. 46.01 Crores awarded by the arbitral award. In view of the same, the court passed the order directing release of the amounts in favour of Landmark. Case Title: Landmark Property Development and Company Limited & ORS. vs Ansal Properties & Infrastructure Limited & Ors. Citation: 2023 LiveLaw (Del) 671 Counsel for the Petitioner: Mr. Amit Sibal, Senior...

Delhi High Court Directs Release Of Rs. 16 Crores To Landmark Group As Per 2018 Arbitral Award Against Ansal Group

Parina Katyal

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Delhi High Court Directs Release Of Rs. 16 Crores To Landmark Group As Per 2018 Arbitral Award Against Ansal Group

Parina Katyal

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Parina Katyal

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