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CASE NO.: Appeal (civil)  3656 of 2006

PETITIONER: M/s. Abdul Gaffar Abdul Rehman

RESPONDENT: M/s.Shivnath Rai Harnarain (I) Ltd.& Anr.

DATE OF JUDGMENT: 24/08/2006

BENCH: Dr. AR. LAKSHMANAN & TARUN CHATTERJEE

JUDGMENT: JUDGMENT (@ SLP(C)NO.21127 of 2004) With CIVIL APPEAL NO.3657 OF 2006 (@ SLP(C)NO.2081-2082 of 2005)

Dr. AR. Lakshmanan, J.

       Leave granted.         Heard learned Senior counsel on either side.

CIVIL APPEAL NO.3656 OF 2006 (@ SLP(C)NO.21127 of 2004)         This Appeal was filed by M/s. Abdul Gaffar Abdul  Rehman against the interim order dated 18.3.2004 passed by the  High Court of Delhi in I.A. No.10382 of 2003 in OMP No.300 of  2001.  By the said order, the High Court ordered that the  consignment in question be sold at the Atari Border itself  through the Chief Commercial Manager, Northern Railway in  accordance with Railways’ rules and regulations regarding  public auctions of such goods and the entire sale proceeds be  deposited in the High Court.  The High Court made it clear that  the order would be without prejudice to the pleas of the parties  in regard to their claims over the consignment in question.   Though this order was passed on 18th March, 2004, the instant  special leave petition was filed in this Court by the appellant  only on 24th August, 2004.  It is now stated that in the meanwhile  the consignment was auctioned and a sum or Rs.1,95,30,000/-  was realised as sale proceeds.  Since goods have already been  sold by complying with the direction of the High Court the  appeal has become infructuous and no relief can be granted to  the appellant in this Civil Appeal No.3656 of 2006 (@  SLP(C)NO.21127 of 2004).  We, therefore, dispose of the same in  view of change in the circumstances, confirming our order  dated 1st October, 2004 by which this Court directed the amount  to be deposited in the High Court pursuant to the auction sale  should not be disbursed.

CIVIL APPEAL NO.3657 OF 2006 (@ SLP(C)NO.2081-2082 of 2005)

       This appeal was again filed by  M/s. Abdul Gaffar Abdul  Rehman against the interim order dated 24.9.2004 passed by the  High Court of Delhi in I.A. Nos.3966 & 6239 of 2004 in OMP  No.300 of 2001.  By the said order the High Court, after hearing  all the respective parties, allowed the application filed by  M/s.  Shivnath Rai Harnarain (I) Ltd. for payment of excise and other

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dues.  By the said order, the Registry of the High Court was  directed to prepare two cheques, one in the sum of  Rs.19,70,064/- in the name of the Excise Department,  Yamunagar and another for Rs.2,33,800/- in the name of the  Excise Department, Dehradun.  The High Court also made it  clear that the payment will be without prejudice to the rights  and pleas of the parties in regard to their respective claims.   

       This Court by interim order dated 7.2.2005, after  issuing notice in the special leave petition, ordered  impleadment of the Commissioner of Excise, Yamuna Nagar  and Commissioner of Excise, Dehradun, in whose favour the  directions have been made by the High Court to issue cheques  for payment of excise duty.  Notice was also ordered to the  impleaded party.  In the meanwhile, this Court stayhed the  operation of order dated 24th September, 2004.   

       The matter was argued by Mr. Kailash Vasdev, learned  Senior Counsel for the appellant and Dr. A.M. Singhvi, learned  Senior Counsel for the respondents at length.  Since the main  matter filed under Section 9 of the Arbitration & Conciliation Act  is pending before the High Court, we are not inclined to  consider the arguments advanced by the learned Senior  Counsel on merits at this stage.  The proper course, in our  opinion, would be to request the High Court to dispose of the  Section 9 application at the earliest.  Since the matter is  pending in the High Court from October, 2001, we request the  High Court to dispose of the Section 9 application as  expeditiously as possible at any rate not later than 30th  November, 2006.  We make it clear that we are not expressing  any opinion on the merits of the rival claims including the  claims of the Excise and Railways.  It is open to those parties to  approach the High Court for appropriate relief.  The stay  granted by this Court in regard to disbursement of the amount  shall be in force till the disposal of the Section 9 application.   The liberty is reserved to all parties to approach the High Court  for expeditious disposal and for other directions, if any.                  The appeals are accordingly disposed of with no orders  as to costs.