Court attaches CHB account for award default

A local court has issued a warrant of attachment of the Chandigarh Housing Board (CHB) bank account as the board has failed to execute an arbitration award pronounced three years ago.

A company, M/s Inter Solar System Pvt Ltd, had filed an application through advocate Jagtar Kureel for the execution of the award dated May 26, 2023.

The company pleaded that the Sole Arbitrator had passed the award and directed the respondents (CHB) to refund Rs 27, 66, 547, along with simple interest at the rate of 12% per annum, within two months from the date of this award, failing which the claimant shall be entitled to the simple interest at the rate of 12% till its realisation.

The respondents were also directed to pay the claimant Rs 50,000 as damages suffered by the company on account of mental agony and harassment.

The company had demanded a total of Rs 48, 86, 530, which included interest and the principal amount.

The Sole Arbitrator was appointed on the direction of the High Court in the arbitration case on October 21, 2022, to resolve the arbitral dispute. The disputed amount pertains to the work for supplying, installing and commissioning of solar heating systems at the Sector 63 housing scheme comprising 260 two-bedroom flats.

The company had claimed despite completing the work, the CHB arbitrarily made a recovery of10 per cent of the estimated cost and also deducted penalty illegally imposed on the company from the final bill.

The company said it had sent a demand notice dated August 31, 2023, to the respondents, directing them to comply with the award order within seven days of the receipt of the notice, but the latter failed to do so. It is, therefore, prayed that the execution may be allowed by the way of attachment of the property of the defendants. The company placed the details of the CHB bank account during the hearing.