Western Railways should pay up or face attachment of its Churchgate building: Bombay High Court

The Bombay High Court on Monday directed the Ministry of Railways to deposit ₹3.9 Crore in the court within a month, failing which the building of the Western Railway at Churchgate railway station would be attached in execution of an arbitral award of 2015 [KP Traders v. Union of India]..Justice Abhay Ahuja passed the order on an execution application moved by KP Traders which had won an arbitral award against the ministry in 2015..The firm submitted that the application has been pending since 2016 and thus the Court must order issuance of warrant of attachment under the Code of Civil Procedure (CPC).However, the counsel representing the Railways sought further time in the matter.While rejecting the request, the Court noted that the Centre's appeal under Section 37 of the Arbitration and Conciliation Act, 1996 had already been dismissed and the restoration application was also rejected.However, it also opined that no useful purpose would be served by "simplicitor attaching the property"..It thus directed the Railways to deposit ₹3,95,94,720 within a four weeks. Otherwise, the Court said the property at Churchgate would be attached.“This court directs railways to deposit ₹3,95,94,720/- in the High Court within a period of four weeks, failing which the learned Prothonotary and Senior Master (Registrar on the original side of the High Court) to issue warrant of attachment attaching the property,” the court said..This was after the petitioner prayed for attachment of the following property:Furniture, fixture, fittings and all other attachable movable articles and immovable property belonging to and in possession of Western Railway, Union of India through Chief Commercial Manager, lying and being in the premises at Western Railway Building, Churchgate.Right, title and interest of the Western Railway in its possession the business premises situated at the building in Churchgate..The case has its origins in a contract under which KP Traders was hired by the Railway Ministry for handling and transshipment of goods and luggage in 1998. By 2003, when disputes arose between the parties, KP Traders invoked the arbitration clause. In 2015, the arbitration resulted in an award in favour of KP traders.As per the award, the Railways was to pay dues to the tune of ₹2,14,65,297 along with further interest at the rate of 18% per annum on the principal dues of ₹1,15,03,541..KP Traders moved the High Court in 2016 seeking execution of the award..Advocates Dhrumil Shah and Rahul Oak appeared for KP Traders.Advocates Mohinee Chougule and Suresh Kumar appeared for the Ministry of Railways.[Read order]