Attachment of Municipal Bank Accounts and Remittance of Funds in Execution of Arbitral Award
Bar Bulletin and the Judgment dated 28.10.2026 of the High Court of Chhattisgarh at Bilaspur in WP227 No.55 of 2023 of Raipur Municipal Corporation Vs. M/s Associated Software Consultancy and others
the petitioner, a statutory body constituted under the Madhya Pradesh Municipal Corporation Act, 1956, invited tenders for the work of mapping, surveying and tax 3 assessment through geographical information systems. The respondent, being the successful tenderer, was awarded the work, and an agreement was executed between the parties on 18.02.2002. Disputes arose during the execution of the work, which were referred to a sole arbitrator. The learned sole arbitrator passed an award dated 07.04.2018 in favour of the respondent, allowing its claim for a sum of Rs. 2,27,79,729/- along with interest at the rate of 9% per annum and other reliefs. The petitioner initially challenged the arbitral award before the High Court; however, the proceedings were withdrawn vide order dated 15.05.2019 with liberty to file a duly constituted appeal. Thereafter, the petitioner preferred an appeal before the learned Commercial Court on 23.07.2021, which was dismissed on 07.05.2022 on the ground of delay. The challenge to the said order before the High Court as well as the subsequent challenge before the Supreme Court also failed, the respective orders having been passed on 27.07.2022 and 13.12.2022.
3. In the meantime, the respondent initiated execution proceedings in respect of the arbitral award before the learned Commercial Court on 08.12.2020 and subsequently filed an application on 06.05.2022 seeking attachment of the petitioner’s bank accounts. The petitioner filed objections under Section 47 of the Code of Civil Procedure, 1908, on 02.06.2022, contending, inter alia, that the arbitral award suffered from errors committed by the learned sole arbitrator. After considering the reply filed by the respondent, the learned Commercial Court, vide order dated 29.11.2022, dismissed the petitioner’s objections and directed the respondent banks to attach the petitioner’s bank accounts to the extent of Rs. 7,00,00,000/-. The petitioner’s subsequent 4 application seeking recall of the said order was followed by an order dated 16.12.2022, whereby the learned Commercial Court directed the respondent banks to remit the aforesaid amount by demand draft to the Court.
