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Judgment
In an application under Section 34 of the Arbitration & Conciliation Act, 1996, as amended by Act 3 of 2016 (in short, "the Act of 1996") the petitioner has filed this application for extension of time to deposit the demand draft of Rs.20,00,000/- and furnish the bank guarantee of Rs.18,92,000/- to the learned Registrar, Original Side of this Court as directed by the judgment and order dated December 5, 2018.
By the judgment and order dated December 5, 2018 this Court directed that subject to deposit of Rs.20,00,000/- in cash with the learned Registrar, Original Side of this court and furnishing a bank guarantee of Rs.18,92,000/- to the satisfaction of the learned Registrar, Original Side of this Court by the petitioner within December 20, 2018, the arbitral award dated April 9, 2018 shall remain stayed till disposal of the application under Section 34 of the Act of 1996. The petitioner, however, has not been able to deposit the said amount of Rs.20,00,000/- with the learned Registrar, Original Side of this Court nor has it furnished the bank guarantee within the time stipulated by this Court on December 5, 2018.
The petitioner has now filed this application seeking the relief as mentioned above. In this application the petitioner has disclosed a copy of the demand draft of Rs.20,00,000/- dated December 28, 2018 issued by it through Oriental Bank of Commerce in favour of the Registrar, Original Side of this Court. It is also submitted by learned counsel appearing for the petitioner that the terms of the bank guarantee to be issued by the banker of the petitioner have been settled by the learned Registrar-in-Insolvency of this Court.
The respondent does not oppose the prayer of the petitioner in this application.
Considering the facts of the case, the time for deposit of the demand draft of Rs.20,00,000/- by the petitioner before the learned Registrar, Original Side of this Court is extended till January 14, 2019. Similarly, the time for furnishing of the bank guarantee by the petitioner in favour of the learned Registrar, Original Side of this Court as directed by this Court on December 5, 2018 is extended till January 25, 2019.
The petitioner shall, however, pay costs assessed at 300 GMs. to the State Legal Services Authority positively within January 14, 2019.
If the petitioner deposits the demand draft of Rs.20,00,000/-as directed above, the learned Registrar, Original Side shall encash the same and invest the proceeds thereof in a short-term fixed deposit to be maintained with the United Bank of India, High Court Branch. The petitioner shall keep the said bank guarantee renewed from time to time till disposal of the application, AP No. 463 of 2018.
With the above directions, GA No.11 of 2019 stands disposed of.