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Delhi court extends stay on Bikaner House attachment

ByArnabjit Sur
Jan 08, 2025 06:06 AM IST

The municipal corporation urged the court not to release the amount to the firm until the high court issues an order for the same.

A Delhi court on Tuesday extended its stay on the attachment of the Bikaner House after noting that the Nokha Municipal Corporation has deposited part of the arbitral award they were supposed to pay to a private company. The stay has been extended till the next hearing, on February 1.

The heritage building is enlisted as one of the assets owned by the Nokha Municipal Corporation in Rajasthan’s Bikaner. (PTI)
The heritage building is enlisted as one of the assets owned by the Nokha Municipal Corporation in Rajasthan’s Bikaner. (PTI)

Further, the municipal corporation urged the court not to release the amount to the firm until the high court issues an order for the same.

Nokha is a municipality in Bikaner district of Rajasthan, and the heritage building -- near India Gate in New Delhi -- is enlisted as one of the assets owned by the municipal body. The case developed after the corporation failed to pay Enviro Infra Engineers Pvt Ltd for constructing a sewage treatment plant in Nokha. In September 2024, the court had ordered the attachment of Bikaner House following repeated failures by the municipality to disclose its assets or comply with court orders. However, the attachment order was deferred in November, contingent on the municipality depositing the award amount in the form of a fixed deposit.

District judge of the Commercial Court Vidya Prakash directed the judgment debtor (municipal corporation) to verify the shortfall. “Can this be a plausible ground? Why are you taking chances? You are the judgment debtor,” the judge said.

Further, the court questioned whether any interim relief had been granted by the high court. The counsel for the municipality responded that the matter was yet to be listed for a hearing.

Advocate Sahil Garg, representing Enviro Infra Engineers, informed the court that while the municipality had deposited 92 lakh as fixed deposit (FD), the total amount owed under the arbitral award was 95 lakh.

In a December 12 affidavit, the executive officer of the Nokha Municipality stated that, in compliance with a November 29, 2024 court order, 92,24,059 had been deposited as a fixed deposit in the name of the district judge of the Commercial Court. The November order had instructed the municipality to deposit the full amount with interest, as mandated by the arbitral award issued on January 21, 2020.

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