Delhi Court Orders Attachment Of Bikaner House Over Unpaid Arbitration Award

The Patiala House Court in Delhi has ordered the attachment of Bikaner House, owned by the Nokha Municipal Council of Rajasthan, after Enviro Infra Engineers Private Limited failed to comply with a 2020 arbitration award. The company owes over Rs 50 lakh following a judgment issued by the arbitration tribunal.

Court Issues Attachment Order for Non-Compliance

District Judge Vidya Prakash of Patiala House Court passed the order after Enviro Infra Engineers Private Limited did not adhere to the arbitration ruling, despite the dismissal of an appeal earlier this year. The arbitration award, issued in January 2020, directed the company to pay Rs 5,031,512. However, the company’s failure to comply with the order led to the court’s decision to attach Bikaner House as a form of enforcement.

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In her September 18 ruling, Judge Prakash stated that despite multiple opportunities for compliance, the company failed to submit an affidavit detailing its assets, as directed by the court. The court noted that this was a clear case warranting attachment of the company’s immovable property, Bikaner House, which is located in the heart of Delhi.

Continued Non-Compliance Spurs Legal Action

The court’s decision follows an application by the decree holder (DH) requesting the implementation of the arbitration award. The ruling emphasized the debtor’s continued non-compliance with the court’s order, marking a significant step towards enforcing the arbitration award. The next hearing in the case is schedule for November 29.

Other Attachments in Enforcement of Arbitration Awards

This ruling comes on the heels of a similar decision by the Himachal Pradesh High Court, which ordered the attachment of Himachal Bhawan in Delhi over the non-payment of a Rs 64 crore arbitration award. The High Court directed the Energy Department to deposit the award amount, which had accrued seven percent interest, and ordered an inquiry into the officers responsible for the delay in payment. If negligence is found, the court indicated that recovery actions may be pursued against the responsible officers.

The order to attach Bikaner House underscores the courts’ growing efforts to enforce arbitration awards and ensure compliance with legal judgments.