THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE K.S. APPA RAO C.M.A Nos.124 of 2011 & 1060 and 390 of 2010 JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) C.M.A.Nos.124 of 2011 and 1060 of 2010 are directed against the very same order, dated 25.10.2010, passed by II Additional Chief Judge, City Civil Court, Hyderabad, in O.P.No.758 of 2010 issuing interim attachment to protect the interest of the petitioner till he enforces the award, whereas, C.M.A.No.390 of 2010 is filed against the interim order dated 20.04.2010 passed in O.P.No.758 of 2010 directing the garnishee-General Manager of Andhra Pradesh Health Medical Housing Infrastructure Development Corporation (APHMHIDC) to maintain status quo with regard to the release of an amount of Rs.26,00,000/- payable to the respondent. Since the issues involved in these three appeals are intrinsically connected, they are taken up together and disposed of by this common order. For the sake of convenience, the parties, hereinafter, will be referred to as they were arrayed in the O.P. The decree holder, who is the petitioner in the O.P and appellant in C.M.A No.1060 of 2010, entered into an agreement with the judgment debtor, who is the respondent in the O.P and appellant in C.M.A Nos.124 of 2011 and 390 of 2010, on 19.02.2002 to do liason work and under the said contractual work, the respondent became due an amount of Rs.26,00,000/- approximately. Hence, the decree holder invoked the arbitration clause as per the Memorandum of Understanding, in which a retired Judge of this Court passed an award on 17.04.2010 directing the judgment debtor to pay a sum of Rs.15,00,000/- to the decree holder being the security deposit covered by three cheques together with interest @24% per annum from 15.08.2005 till the date of claim petition i.e., 07.04.2007, which works out to Rs.5,92,000/-, and thereafter @ 9% per annum till the date of award i.e., 17.04.2010, which works out to Rs.4,08,375/-, and at the same rate of 9% per annum from the date of award till the date of realisation. The Arbitrator further held that the judgment debtor is entitled to payment of Rs.94,435/- from the decree holder, being the excess amount paid to it towards commission, with interest thereon @ 9% per annum from the date of award till realisation and dismissed the counter-claim of the judgment debtor holding that he is not entitled to set off. To set aside the said award, the judgment debtor filed O.P.No.1507 of 2010 under Section 34 of the Arbitration and Conciliation Act, 1996 (for short ‘the Act’), whereas, the decree holder filed O.P.No.1638 of 2010 to the extent of the claim disallowed by the Arbitrator. Pending the said O.Ps, the present O.P.No.758 of 2010 is filed by the decree holder under Section 9 (ii) (b) of the Act seeking interim order of attachment by way of garnishee order directing the General Manager of APHMHIDC not to release the amount of Rs.26,00,000/- to the judgment debtor. During the pendency of the said O.P, the II Additional Chief Judge, City Civil Court, Hyderabad passed an interim order on 20.04.2010 to maintain status quo with regard to the release of the amount. Questioning the same, the judgment debtor filed C.M.A No.390 of 2010. A Division Bench of this Court, by order dated 30.04.2010 in C.M.A.M.P No.1037 of 2010 in C.M.A.No.390 of 2010, stayed the status quo order subject to condition of the judgment debtor depositing half of the amount awarded by the Court below within a period of eight weeks from that date and on such deposit, the decree holder was permitted to withdraw the same, without furnishing any security. Even though the judgment debtor did not comply with the said order, the garnishee-APHMHIDC deposited an amount of Rs.13,00,000/- i.e., half of the amount as directed by this Court, to the credit of O.P.No.758 of 2010, by way of a Government cheque. The Court below, by the impugned order dated 25.10.2010, observed that without there being any order from the Court, the Managing Director, APHMHIDC, sent the cheque to the Court, and therefore, the same shall be deposited to the credit of the O.P., and directed the Managing Director, APHMHIDC not to release further sum of Rs.13,00,000/- in favour of the judgment debtor till the decree holder initiates the proceedings under Section 36 of the Act or for a period of six months from the date of that order, whichever is earlier. Aggrieved by the said order, the judgment debtor filed CMA No.124 of 2010, whereas the decree holder filed CMA No.1060 of 2010 in restricting the period of interim measures (attachment) for a period of six months. Heard both sides and considered the entire material available on record. In view of passing of final order in O.P.No.758 of 2010, C.M.A.No.390 of 2010 filed against the interim order of status quo passed in the said O.P, has become infructuous. Hence, C.M.A.No.390 of 2010 is dismissed as infructuous. Once an award is passed, the party, in whose favour the award is passed, is entitled to secure the amount in dispute in the arbitration, as per Section 9(ii)(b) of the Act. If the time for making an application to set aside the arbitral award under Section 34 has expired, or such application having been made, it has been refused, the award so passed can always be enforced in the same manner as if it were a decree of the Court. Admittedly, O.P.No.1507 of 2010 has been filed by the judgment debtor under Section 34 of the Act for setting aside the award passed by the Arbitrator, whereas, O.P.No.1638 of 2010 has been filed by the decree holder to the extent of the claim disallowed by the Arbitrator. Therefore, the arbitral award cannot be enforced. In view of the same, the fixation of time limit by the Court below for a period of six months for continuing the interim attachment, is not in tune with the provisos of the Act, and hence the impugned order to the said extent is set aside. C.M.A.No.1060 of 2010 is accordingly allowed. Since half of the amount awarded by the Court below has been permitted to be withdrawn by the decree holder, as per the interim order of this Court dated 30.04.2010 in C.M.A.M.P.No.1037 of 2010 in C.M.A.No.390 of 2010, the decree holder is entitled to withdraw the sum of Rs.13,00,000/-, which was deposited by the Managing Director of APHMHIDC to the credit of the suit. Hence, the Court below is directed to permit the decree holder to withdraw the amount of Rs.13,00,000/-. The balance amount of Rs.13,00,000/-which is directed not to be released, shall be continued, till the disposal of O.P.No.1507 of 2010 . In the result, C.M.A.No.1060 of 2010 is allowed. Consequently, C.M.A.No.124 of 2011 stands dismissed. C.M.A.No.390 of 2010 is dismissed as infructuous. There shall be no order as to costs. ________________ A. GOPAL REDDY, J ________________ K.S. APPA RAO, J Date: 30.08.2011 va