In a significant ruling, the Commercial Court-03 of South-West District, Dwarka, issued a warrant of attachment against the National Highway Authority of India (NHAI) headquarters located at G-5 & 6, Sector-10, Dwarka, New Delhi-110075. The decision was rendered by District Judge (Commercial Court) Amit Bansal in the execution proceedings arising from an arbitral award dated November 30, 2017, in favor of the decree holder.
Background of the Case
The case, titled “Dilpat Singh (deceased) through LRs vs. Union of India” (Execution (Comm) 97/24), pertains to the execution of an arbitral award passed by Sh. Dhirendra Khadgata, IAS, Additional Deputy Commissioner-Cum-Arbitrator, Jind, Haryana, under the provisions of the National Highway Act, 1956. The award granted compensation to the decree holder, but the judgment debtor, NHAI, failed to satisfy the decree, leading to the initiation of execution proceedings.
Legal Issues Involved
The key legal issues before the court included:
1. Jurisdiction for Execution of Arbitral Award – The decree holder relied on precedents such as Gujarat JHM Hotels Ltd. v. Rajasthali Resorts and Studios Limited (2023 SCC OnLine Del 161) and Sundaram Finance Ltd. v. Abdul Samad (2018) 3 SCC 622, arguing that execution proceedings could be initiated in any court within whose jurisdiction the assets of the judgment debtor were located.
2. Failure to Disclose Assets – The judgment debtor was required to file an affidavit of assets in Form 16A of Appendix E under Order XXI Rule 41(2) of CPC. Despite repeated opportunities, the NHAI did not comply.
3. Attachment of Property as Enforcement Mechanism – The decree holder sought the court’s intervention to attach the immovable property of NHAI, given its failure to clear the outstanding dues or disclose any assets.
Court’s Observations and Ruling
The court noted the persistent non-compliance by NHAI despite multiple opportunities to file an affidavit of assets. The absence of any legal objections from the judgment debtor further strengthened the decree holder’s case.
Key Observations of the Court:
– “The JDs have failed to comply with the directions for furnishing an affidavit of their assets despite grant of opportunities.”
– “This court finds it a fit case for issuance of warrants of attachment against the immovable property of JD No. 2 (NHAI) located in Dwarka, New Delhi.”
– “The judgment debtor is prohibited from transferring or charging the property in any way, and all persons are restrained from taking any benefit from such transfer.”
Based on these findings, the court issued a warrant of attachment against the NHAI headquarters in Dwarka, New Delhi, under Order XXI Rule 54 CPC.
The matter is now listed for March 19, 2025, for further proceedings, including settling the terms for the proclamation of sale of the attached property. The decree holder may take additional steps if NHAI continues to default.
