Nagar Palika Nokha Deposits ₹92 Lakhs In Delhi Court, Extends Interim Stay

The Patiala House Court extended the interim stay on the attachment of Bikaner House following the deposit of Rs.92 lakh by Nagar Palika Nokha, Rajasthan.

The amount, totaling Rs.92 lakh and 24 thousand, was submitted to the court as part of ongoing proceedings related to an arbitration award. However, Nagar Palika has also filed an appeal before the Delhi High Court to challenge the award order.

District Judge (Commercial) Vidya Prakash granted Nagar Palika a one-week window to present any stay order from the High Court. If no such stay is granted, the deposited amount will be released in favor of M/s Enviro Infra Engineers Pvt. Ltd., the company holding the arbitration award. Advocate Sahil Garg, representing the company, raised concerns about discrepancies in the deposited amount. The court instructed the opposing counsel to clarify this mismatch by the next hearing date.

Additionally, the court asked the counsel for Rajasthan to address any objections they may have regarding the court’s previous order. The matter is set for further hearing on February 1, 2025.

The case revolves around an arbitration award favoring M/s Enviro Infra Engineers Pvt. Ltd. for work completed for Nagar Palika Nokha, Rajasthan, in 2011.

On November 29, the court had granted a conditional stay on the attachment of Bikaner House, contingent on the deposit of the due amount within a week. If the amount was not paid, the court warned of potential auction proceedings for the attached property.

The dispute stems from Nagar Palika’s failure to comply with previous court orders. In November, the court issued a warrant for the attachment of Bikaner House in Delhi, after the agency failed to provide an affidavit of assets, despite repeated opportunities.

In its order, the court stated that the situation warranted the attachment of the immovable property of the judgment debtor (JD), namely Bikaner House.

The arbitration award, passed on January 21, 2020, in favor of M/s Enviro Infra Engineers Pvt. Ltd., required Nagar Palika to pay Rs 50,31,512. The court earlier issued a directive on September 18, 2023, restraining Nagar Palika from transferring or charging Bikaner House until further orders. This was in response to Nagar Palika’s non-compliance with the award.

Nagar Palika had filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging the arbitral award. However, this petition was dismissed on January 24, 2024, prompting the decree holder to press for the attachment of Bikaner House as part of the enforcement of the award.

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