Execution against third parties
Tushar
(Querist) 06 March 2013
This query is : Resolved
there's an arbitration award passed wherein the Claimants have been awarded certain sum of money to be paid by the respondent and further it is held that money which is lying in bank a/cs of the firm shall be given to the Claimants and it is further held that certain sum which was kept as security deposit with a third person shall be given to the claimants.... now the Respondent has obeyed the Award and has also given a no objection to the Claimant to get the other part of the Award enforced ... but one of the Bank is not ready to release the amount to the Claimants... so also the third person who has the security deposit is not obeying the Award .. stating that they are not parties to the Arbitration proceedings and hence not bound by the Award....
What course of action could be taken??? can execution proceedings be filed against the bank and that third person???
please help....
Raj Kumar Makkad
(Expert) 06 March 2013
It is better to get the award as a decree of the court by filing it before the concerned judge so thereafter the banker and the third party cannot refuse to follow it in letter and spirit.
mukesh Gupta
(Expert) 06 March 2013
I would like to add few things. It is necessary to know first in which of the arbitration act the award has been passed. If its ACT 1940 that the award is to be made rule of court by filing the same in the court. if its ACT 1996 than the award it executable as decree no need to make it decree straight way execution can be filed.
Raj Kumar Makkad
(Expert) 06 March 2013
I pay special regards to Mukesh who has made differentiation of the awards.
Tushar
(Querist) 07 March 2013
should i make the bank & that third party as parties to Application for execution as Judgment Debtors??
Raj Kumar Makkad
(Expert) 07 March 2013
You can definitely add these parties as JDs as desired.
M V Gupta
(Expert) 07 March 2013
I doubt very much that the award can be enforced against the bank and the person holding the security deposit. My reasons are as under: 1. The bank and the third party are not parties to the arbitration and hence they are not bound by the award. 2. The award constitutes a direction to the Respondent in the arbitration proceedings to pay the amounts from the sums held by third parties by instructing them to release the same to the claimant or himself liquidate deposits and pay the same to the claimant. 3. As regards the security deposit is concerned, the redemption is dependent on the terms subject to which the SD has been made.
Chanchal Nag Chowdhury
(Expert) 09 March 2013
Since the money belongs to the JD,the 3rd.parties are bound by the decree to the extent of the JD's money lying with them. The decree is executable against the 3rd.parties.
M V Gupta
(Expert) 10 March 2013
I agree;the plaintiff should apply for garnishee order.
