P.K. Singh Vs. M/s. S.N. Kanungo
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Head Note
The Arbitration and Conciliation Act, 1996 - Section 34 , Section 36 , The Code of Civil Procedure, 1908 - Order XXI Rule (2)
Execution of decree - Adjustment of decree - Meaning thereof - An agreement between parties to decree which extinguishes the decree in whole or in part and results in the satisfaction of the decree in respect of particular relief or reliefs granted by the decree - Is an -adjustment" within the meaning of Rule 2, Order 21, CPC.
The Arbitration and Conciliation Act, 1996 - Section 34 , Section 36 , The Code of Civil Procedure, 1908 - Order XXI Rule (2)
Execution of decree - Attempt of judgment debtor to adjust the decree - Whether amounts to contempt of court - Held, (No) - In contract an arbitration clause - Dispute cropped up and matter goes to arbitrator - Arbitrator gave his award with interest - Award confirmed upto High Court and payment ordered - Appellant the judgment debtor thereafter, requested respondent to adjust the award by accepting only the principal amount and waiving off interest amount - High Court treats the same as contempt of court and imposed cost on appellant - Order set aside - Held, appellant/ Judgment Debtor attempting to adjust the decree/ award cannot be made liable for contempt of court.
The Arbitration and Conciliation Act, 1996 - Section 34 , Section 36 , The Code of Civil Procedure, 1908 - Order XXI Rule (2)
Execution of decree - Where parties in execution entered into contract or compromise adjusting the decree - Such adjustment must be recorded under Rule 2 to Order 21 of CPC - Unless so recorded, same cannot be recognized by executing court.
Topic(s)-Execution of Decree , Adjustment of Decree
Important Decision(s)- Order 21, Rule 2 - Execution of decree - Attempting to adjust the decree/ award cannot be made liable for contempt of court.