Bharat Sanchar Nigam Limited vs National Telecom Of India Ltd on 20 January, 2025

Supreme Court – Daily Orders

Bharat Sanchar Nigam Limited vs National Telecom Of India Ltd on 20 January, 2025

Author: Abhay S. Oka

Bench: Abhay S. Oka

     ITEM NO.37                             COURT NO.5                SECTION XIV

                                  S U P R E M E C O U R T O F     I N D I A
                                          RECORD OF PROCEEDINGS

               PETITION(S) FOR SPECIAL LEAVE TO APPEAL (C)          NO(S).    4831/2019

     [Arising out of impugned final judgment and order dated 04-10-2018
     in OMP (ENF) (COMM) No. 165/2016 passed by the High Court of Delhi
     at New Delhi]

     BHARAT SANCHAR NIGAM LIMITED                                      Petitioner(s)

                                                   VERSUS

     NATIONAL TELECOM OF INDIA LTD.                                    Respondent(s)

     Date : 20-01-2025 This petition was called on for hearing today.

     CORAM :                 HON'BLE MR. JUSTICE ABHAY S. OKA
                             HON'BLE MR. JUSTICE UJJAL BHUYAN

     For Petitioner(s):               Mr. Dinesh Agnani, Sr. Adv.
                                      Mr. Piyush Sharma, AOR
                                      Mr. Shivam Dubey, Adv.
                                      Ms. Leena Tuteja, Adv.
                                      Mr. Anuj Kumar Sharma, Adv.

     For Respondent(s):               Mr. Shekar Naphde, Sr. Adv.
                                      Mr. Sriram P., AOR
                                      Mr. Pramod Singh, Adv.

                             UPON hearing the counsel the Court made the following
                                                O R D E R

The learned Arbitrator made an award dated 10th July, 2007.

The operative part of the award dated 10th July, 2007 reads as

under:

“In the net result this Arbitral Tribunal makes
the following Award:

“(i) That the respondent shall pay to the
petitioner/claimant a sum of Rs.1,09,00,000 /-
(Rupees One Crore Nine Lacs only) towards cost of
goods (SLC 6/15 numbering 266)
Signature Not Verified
fabricated/manufactured by the petitioner/claimant
Digitally signed by
ASHISH KONDLE
Date: 2025.01.22
in pursuance of Advance Purchase Order dated
20:32:03 IST
Reason: 11.12.1996, issued by the respondent together with
simple interest @ 12% p.a. on the above amount from

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01.04.1997 till actual payment;

(ii) That in addition to (i) above the respondent
shall also pay to the petitioner/claimant a sum of
Rs.3,46,580/- (Rupees Three Lacs Forty Six thousand
five Hundred Eighty only) towards the cost of the
present proceedings; and

(iii) That on receipt of the payment of the above
awarded sum from the respondent, the petitioner/
claimant within 15 days from the receipt of such
payment shall offer delivery/return of the goods
(SLC 6/ 15, numbering 266) manufactured by the
petitioner/claimant 1n pursuance of APO dated
11.12.1996 to the respondent. In case the
respondent despite receipt of such a communication,
fails to take the delivery/lift the above mentioned
goods in question within a period of 30 days from
the date of receipt of such communication from the
end of the petitioner/claimant, the petitioner/
claimant in such an eventuality would be at liberty
to dispose of those goods in the manner as may be
deemed fit by the petitioner/claimant but after
advance notice to the respondent. The proceeds of
these goods so received by the petitioner/claimant,
after the disposal of the goods in question, in the
manner stated above, shall be paid by the
petitioner/claimant to the respondent soon
thereafter. This is being ordered keeping in view
the equity because after the payment of the awarded
amount the goods so manufactured virtually belong
to the respondent.

…”

The award has attained finality after dismissal of the

petition under Section 34 of the Arbitration and Conciliation Act,

1996 (for short, “the Arbitration Act”), appeal under Section 37 of

the Arbitration Act and the Special Leave Petition.

An execution application was filed for execution of the award.

The entire amount payable by the petitioner was deposited. Only

after the amount was deposited, the respondent made an application

before the executing Court that that the factory of the respondent

was closed in the year 2003 and, unknowingly, the equipment, which

was to be returned as per clause (iii) of the operative part of the

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award, has been removed by the caretaker of the premises

considering it to be a scrap.

The following conduct of the respondent stares at the face:

(a) The respondent did not bring this fact to the notice of

the executing Court till the petitioner deposited the entire

amount payable as per the award;

(b) The fact that the equipment has been removed was brought

to the notice of the executing Court only after the amount

deposited by the petitioner was withdrawn by the respondent;

and

(c) The respondent did not disclose even the date on which

the equipment was disposed of. Not a single document was

produced to show the manner in which the equipment was

disposed of.

Considering this conduct of the respondent, we direct the

respondent to deposit with the High Court the entire amount

received by it under the award within a period of two months from

today. The said amount shall be invested in a fixed deposit with

any nationalised bank and it shall be renewed from time to time.

The observations made in this order are only prima facie

observations.

For considering the compliance and fixing a date for hearing,

list the Petition 28th March, 2025.

(ASHISH KONDLE)                                                   (AVGV RAMU)
   AR-CUM-PS                                                   COURT MASTER (NSH)



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