Bombay High Court
JAGANATH GOVINDRAO PHULAREversusUNION OF INDIA THROUGH ITS GENERAL MANAGER
- Disposal
- DISPOSED OFF
Holding
The Court held that the applicant may withdraw the full award amount without security, subject to furnishing security for any balance and accrued interest.
Summary
The applicant, Jaganath Govindrao Phulare, sought the withdrawal of the full amount of an arbitration award of Rs.14,31,37,791 dated 28 December 2018, which had previously been challenged under Section 34 of the Arbitration and Conciliation Act, 1996 and dismissed. The respondent, the Union of India, argued that the award was excessive and that only Rs.10 crore, deposited as a bank guarantee, had already been withdrawn. The applicant contended that the bank guarantee amount could be released and presented a chartered accountant’s certificate indicating a total receivable of Rs.57,42,97,120. The Court noted that the award had stood for several years and that only the guarantee amount had been withdrawn so far. Consequently, the Court allowed the application, permitting the applicant to withdraw the entire award amount without security, while requiring security for any balance and accrued interest. The civil application was thereafter disposed of.
Issues considered
- Whether the applicant is entitled to withdraw the full arbitration award amount without providing security after a partial withdrawal of the bank guarantee.
- Whether the award, having survived a Section 34 challenge, remains enforceable for withdrawal purposes.
Legislation cited
Subjects
- Arbitration award
- Section 34
- Withdrawal of amount
- Bank guarantee
- Security
- High Court
- Enforcement
Judgment
2026:BHC-AUG:34341-DB
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
910 CIVIL APPLICATION NO. 5595 OF 2026
IN CARBA/1/2026
JAGANATH GOVINDRAO PHULARE
VERSUS
UNION OF INDIA THROUGH ITS GENERAL MANAGER
...
WITH
COMMERCIAL ARBITRATION APPEAL NO. 1 OF 2026
WITH
CIVIL APPLICATION NO. 1523 OF 2026
IN CARBA/1/2026
...
Advocate for the Applicant : Mr. Thigale Girish Kalidasrao
Advocate for Orig. Applicant In CARBA No. 1/2026: Mr. Ajay Gajanan Talhar
…
CORAM : NITIN B. SURYAWANSHI AND
ABASAHEB D. SHINDE, JJ.
DATE : 31.07.2026
PER COURT :
. IN CIVIL APPLICATION NO. 5595 OF 2026 IN CARBA/1/2026
. By this application, the applicant/original claimant seeks
withdrawal of the amount deposited by the respondent/original
appellant. The award came to be passed in favour of the applicant on
28.12.2018 of Rs.14,31,37,791. The said award was unsuccessfully
challenged under Section 34 of the Arbitration and Conciliation Act,
1996 by the appellant.
2. Learned DSGI opposed the application stating that the original
cost of the tender issued to the applicant was Rs.4,71,15,046/-. In this
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view of the matter, an exorbitant amount is awarded by the learned
Arbitrator and therefore, the applicant may not be permitted to
withdraw the amount. He further submits that Rs.10 crores were
deposited before the District Court, which is already withdrawn by the
applicant.
3. Learned Advocate for the applicant, in reply, submits that, the
amount of Rs. 10 Crores towards bank guarantee was permitted to be
withdrawn. He further submits that he has annexed a certificate of a
Chartered Accountant stating that the total amount receivable by
applicant is Rs.57,42,97,120/-.
4. Taking into consideration the fact that the award is passed in the
year 2018 and that, by now, only amount Rs.10 crores is withdrawn,
that too, which was deposited towards the bank guarantee, we are
inclined to allow the application. The application is, therefore, allowed.
5. The applicant is permitted to withdraw amount of Rs.
14,31,37,791 of the award without any security, and the balance
amount, alongwith accrued interest thereon, on furnishing solvent
security/surety to the satisfaction of the Registrar (Judicial) of this
Court. Civil application, accordingly, stands disposed of.
( ABASAHEB D. SHINDE, J. ) ( NITIN B. SURYAWANSHI, J. )
vsj..
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