TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 1188
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....greement which involved collection and transportation of waste materials after undergoing a waste management procedure. On 28th April, 2017 a sub contract to get done part of the project was made by the respondents with the appellant through a Master Service Agreement. On 4th October, 2017 another agreement called the Escrow agreement was entered into by the parties and some other entities including Axis Bank limited. Under this agreement all money received by the respondent no.2 under the Concession Agreement would be deposited in an Escrow account with Axis Bank acting as the Escrow agent. The Master Service agreement between the parties contained an arbitration Clause (17.2). It is set down below: "17.2 Arbitration and Jurisdiction (i) All disputes, differences, claims and demands arising under or pursuant to or concerning this Agreement shall be referred to Arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendment or re amendment or re-enactment thereof, subject to following rules: (a) The Arbitration tribunal shall comprise of three arbitrators as follows: i. one will be appointed by the Client and the Conf....
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....bject-matter of the arbitration agreement; (b) securing the amount in dispute in the arbitration; (c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence; (d) interim injunction or the appointment of a receiver; (e) such other interim measure of protection as may appear to the court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it. (2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determin....
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....ent naming an arbitrator, the arbitral tribunal could be said to have been constituted. Or if there is provision in the agreement for two arbitrators and for a third arbitrator to be chosen by them, the moment the two agreed on the third, the arbitral tribunal would be constituted. The first part of sub-section (1) of Section 9 is very relevant for the purpose of interpretation and is as follows: "9. (1) A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court ............." Then, with effect from 23rd October, 2015, sub-section 3 was added as follows :- "9. (3) Once the arbitral tribunal has been constituted, the Court shall not entertain an application under sub-section (1), unless the Court finds that circumstances exist which may not render the remedy provided under section 17 efficacious." Sub-section (1) was not amended. The power of the court under sub-section 1 is very wide in its amplitude and scope to be exercised throughout the arbitral proceedings. If the intention of the legislature was that constitution of the tribunal would have the same m....
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....client. He showed us paragraph 29 of the Section 9 petition in which a reference was made to a WhatsApp message dated 19th March, 2020, a screenshot of which was included in the paper book. The screenshot contained a statement of account between the parties according to which a sum of Rs.8,17,93,600/- was due and payable by the respondents to the appellant. He submitted that there was clear admission of liability on the part of the respondents. Learned counsel also showed us an email dated 27th August, 2018 wherein the respondents assured that all payments received by them would be routed through the Escrow account. Mr. Banerjee submitted that the respondents should be held to their promise. On the other hand Mr. Bose for the respondents submitted that on termination of the agreement his clients were not bound by any covenant. They could not be forced to deposit the receivables into a particular account. That would amount to attachment before judgment. The appellant had not been able to make out any case for attachment before judgment. Payments had been made by his clients from other accounts to the appellant. The genuineness of the WhatsApp message was denied by learned counsel....
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....firming Party have agreed upon the following terms: (i) An Escrow Account shall be opened/ maintained with the Escrow Bank and the Client, LPIN, QUIPPO, SREI and the Confirming Party shall be named as (joint beneficiaries of the Escrow Account. The monies deposited/ to be deposited in the Escrow Account shall be utilised only in accordance with the Escrow Agreement. The monies deposited/ lying in the Escrow Account shall be utilised inter alia for the payment of dues under this Agreement (if not paid in accordance with this Agreement), the Master Lease Agreement (if not paid in accordance with the Master Lease Agreement), the LPIN Agreement in the following order and priority: (a) firstly, for all the outstanding dues under this Agreement, the Master Lease Agreement and the LPIN Agreement on pro rata basis; (b) secondly, towards the costs, expenses, default interest, taxes due and payable by the Client and/or the Confirming Party to QUIPPO, SREI and LPIN on a pro rata basis; (c) thirdly, in the event of termination of this Agreement and/ or the Master Lease Agreement by QUIPPO and/ or SREI (as the case may be), for the termination payments payable under this Agreement and/ ....