Execution Petition Not Maintainable Merely Because Award Debtor's Bank Has Branches In State; Jurisdiction Lies Where Account Is Kept: HP High Court

The Himachal Pradesh High Court has held that an execution petition is not maintainable in any state where the award debtor's bank has branches. The Court remarked that it will only be maintainable in the State where the award debtor maintains a bank account.Justice Ajay Mohan Goel remarked that: “Simply because the award debtor has an account in a bank in Chhattisgarh, which bank also has its branches in the State of Himachal Pradesh, the same will not confer jurisdiction upon this Court… the act of the Court of conferring jurisdiction upon itself on the analogy that the bank also has its branches in the State of Himachal Pradesh, shall be slightly far-fetched.”The petitioner, M/s Esteem Industries, filed an execution petition before the High Court seeking enforcement of an arbitral award. The award had directed the respondent, Chhattisgarh Medical Services Corporation Ltd., to pay ₹3.64 crore along with litigation costs, expenses, and interest.The respondent filed an objection stating that the execution petition is not maintainable before the Himachal Pradesh High Court. It contended that there were no properties, assets, or employees in Himachal Pradesh and all immovable properties and bank accounts were located in Chhattisgarh. In response, Esteem Industries contended that since IndusInd Bank, where the respondent had a bank account, also had branches in Himachal Pradesh, the Court could order attachment of that account under Order XXI Rules 46 and 52 of the CPC, which permit attachment of property “in custody of a public officer.”The Court remarked that the execution petition was not maintainable in Himachal Pradesh since there were no assets of the award debtor situated in the State.Further, the Court stated that the mere existence of a bank's branch in a state does not create jurisdiction when the debtor's account is held in a branch outside the State.Thus, the court held the execution petition as not maintainable. Case Name: M/s Esteem Industries v/s Chhatisgarh Medical Services Corp. Ltd. and another Case No.: Exe.Pt. No.28 of 2023Date of Decision: 31.10.2025For the Petitioners: M/s Suman Thakur and Madhurika Sekhon, AdvocatesFor the Respondents: Mr.Gautam Sood, AdvocateClick Here To Read/Download Order

Execution Petition Not Maintainable Merely Because Award Debtor's Bank Has Branches In State; Jurisdiction Lies Where Account Is Kept: HP High Court

Mehak Aggarwal

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