1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. ARBITRATION PETITION NO.48 OF 2008 Kingfisher Airlines Ltd. ...Petitioner. Vs. Northern Builders Pvt Ltd. & Ors. ...Respondents. .... Mr. N.H. Seervai, Senior Advocate with Mr. Shahrukh Kathawala i/b. Bachubhai Munim & Co. for the Petitioner. Mr. Rajiv Narula with Mr. Anuj Narula i/b. M/s. Jahangiani Narula & Asso. for Respondent No.1. Mr. Prakash Panjabi i/b. Prakash panjabi & Co. for Respondent No.2. ..... CORAM :DR.D.Y.CHANDRACHUD, J. February 4, 2008. P.C.: At the hearing of the Arbitration Petition, Counsel appearing on behalf of the Petitioner and Counsel appearing for the First and Second Respondents have agreed to the following order being passed. Hence the following order : 1. The Prothonotary & Senior Master shall out of the amount of Rs. 13.35 crores deposited by the Petitioner in pursuance of 2 clause 3 of the Consent Terms dated 21st September 2007 pay an amount of Rs.5,57,24,041/- together with daily interest computed at Rs.23,664/- from 1st February 2008 till payment, to the Second Respondent (SICOM LTD.) being the dues of the Second Respondent in terms of the affidavit dated 4th February 2008 filed in these proceedings. The aforesaid payment shall be effected by the Prothonotary & Senior Master, within a period of two weeks from today; 2. The payment of the aforesaid amount shall not be construed in any manner whatsoever as an adjudication by this Court (i) on the nature of the deposit of Rs. 13.35 crores that was effected by the Petitioner; or (ii) the purpose for which the aforesaid deposit was made; or for the release of the amount. All the rights and contentions of the Petitioner and the First Respondent are kept open to be urged in the arbitral proceedings and in such other proceedings as are pending including the suit instituted by the First Respondent against the Petitioner being LE Suit No.54/89/2007; 3 3. Upon the Prothonotary & Senior Master releasing the aforesaid payment to the Second Respondent, the Second Respondent agrees through its Learned Counsel to deposit the title deeds with the Prothonotary & Senior Master. The deposit of title deeds shall abide by such directions as may be issued by the Learned Arbitrator in the course of the arbitral proceedings; 4. Upon release of the aforesaid amount to the Second Respondent, the Second Respondent has no objection to the Petitioner continuing to pay an amount of Rs.13,96,709/- as envisaged in clause 4(a) of the Consent Terms dated 21st September 2007 and into such account as nominated by the First Respondent; 5. The aforesaid arrangement including the agreement recorded on the part of the First Respondent for the release of money by the Prothonotary & Senior Master to the Second Respondent is without prejudice to the rights and contentions of the parties; 4 6. Counsel appearing for the Second Respondent has stated before the Court on instructions that the aforesaid payment shall be in full and final discharge of all the claims, outstandings and dues payable to the Second Respondent and that an application will be made for obtaining an order of discharge in the proceedings under Section 138 of the Negotiable Instruments Act, 1881; 7. Counsel appearing for the Second Respondent states that upon the aforesaid payment being made by the Prothonotary & Senior Master to the Second Respondent, the Second Respondent shall have no claim against the Petitioner under the letter dated 25th August 2006 Exhibit 'D' to the Petition. The Arbitration Petition is disposed of by consent in the aforesaid terms since no other point is pressed on either side. ......