- 1 - IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION APPEAL NO.564 OF 2004 IN CHAMBER SUMMONS NO.527 OF 2003 IN EXECUTION APPLICATION NO.155 OF 2002 IN AWARD DATED 11TH APRIL, 2001 M/s.Soma Papers & Industries Ltd.) having their office at Indian ) Mercantile Chambers, 3rd Floor, ) 14, R.Kamani Marg, ) Mumbai - 400 038. ).. Appellants (Org.Petitioners) Vs. M/s.GTC Industries Ltd., ) having their office at Tobacco ) House, S.V.Road, Vile Parle West,) Mumbai - 400 056. ).. Respondents (Org.Respondents) -- S/Shri Zal Andhyarujina i/by S.R.A.Shaikh for the appellants. S/Shri Pradeep Sancheti along with Rahul Mascarhans i/by G.S.Manasawala for the respondents. -- CORAM : SRI R.M.S.KHANDEPARKAR & SRI R.S.MOHITE, JJ DATED : 1ST APRIL, 2008 ORAL JUDGMENT : ( PER R.M.S.KHANDEPARKAR, J ) ORAL JUDGMENT : ( PER R.M.S.KHANDEPARKAR, J ) ORAL JUDGMENT : ( PER R.M.S.KHANDEPARKAR, J ) 1. Heard. This appeal arises from the order dated 20th July, 2004 passed in Chamber Summons No.527 - 2 - of 2003 in Execution Application No.155 of 2002 in Award dated 11th April, 2001. 2. Pursuant to the reference made on account of a dispute which had arisen under the agreement dated 18th March, 1995, an award came to be declared on 11th April, 2001, and the same was sought to be objected by filing an Arbitration Petition by the respondents herein. The said petition for setting aside the award dated 11th April, 2001 was dismissed by an order dated 7th August, 2001 and the appeal being No.399 of 2002 was preferred, which came to be heard and disposed of by a reasoned judgment delivered today. The said appeal has been dismissed. 3. In the case in hand, there was an application filed by the appellants for execution of the decree drawn pursuant to the arbitral award. The same was sought to be objected by taking out a chamber summons by the respondents which came to be made absolute by the impugned order. Hence, the present appeal. 3. A short point which arises for consideration in this appeal is whether the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 apply to the execution proceedings arising out of a - 3 - decree drawn pursuant to the arbitral award. In fact, the said point no more survives for consideration in view of the decision of the Apex Court on the said issue. In the matter of Morgan Securities & Credit Morgan Securities & Credit Morgan Securities & Credit (P) Ltd. v. Modi Rubber Ltd., (P) Ltd. v. Modi Rubber Ltd., (P) Ltd. v. Modi Rubber Ltd., reported in (2006)12 SCC 642, the Apex Court has clearly ruled that "Once the arbitral award having the force of a decree is put into execution, sub-section (1) of Section 22 of SICA would come in its way from being enforced." Undisputedly, in the case in hand, what was sought to be executed by the appellants was the decree drawn pursuant to the arbitral award. Considering the law laid down by the Apex Court in Morgan Securities & Morgan Securities & Morgan Securities & Credit (P) Ltd.’s case (supra), Credit (P) Ltd.’s case (supra), Credit (P) Ltd.’s case (supra), we find that there is absolutely no substance in the present case and on that count itself, the appeal is liable to be dismissed. 4. Needless to say that the situation perhaps could be different in case the Company ceases to be SICK Company. Request for the observation that in case the provisions of law of the SICA cease to be applicable to the decree, then the parties would be entitled to seek the execution thereof, is unwarranted at this stage. It is too premature to comment upon the situation which do not exist as on this day. - 4 - 5. For the reasons stated above, the appeal is dismissed with no order as to costs. Sd/- ( R.M.S.KHANDEPARKAR, J ) Sd/- ( R.S.MOHITE, J )