High Court Orders Confiscation Of Himachal Bhawan In Delhi

The order was passed by Justice Ajay Mohan Goyal hearing a compliance petition filed by Seli Hydro Electric Power Company Limited against the Energy Department.

Shimla:The Himachal Pradesh High Court has issued orders to confiscate Himachal Bhawan in Delhi to ensure compliance with an arbitration award. It is noteworthy that Himachal Bhawan is located at 27 Sikandra Road, Mandi House in New Delhi.

The order was passed by Justice Ajay Mohan Goyal while hearing a compliance petition filed by Seli Hydro Electric Power Company Limited against the Energy Department. Along with this, the High Court also ordered the principal secretary of the state's MPP and power department to conduct an inquiry as to why the award of Rs 64 crore along with a seven per cent interest had not been deposited in the court.

The court said it is necessary to find the negligent officers against whom an order can be issued to recover the interest personally. The court also ordered that the investigation should be completed in 15 days and submit the report before the court on the next date. The matter will be heard on December 6.

What is the matter?

During the hearing of this case, the court found that on January 13, 2023, a single bench had directed the respondents to return the advance premium of Rs 64 crore deposited by the petitioner along with 7 per cent annual interest from the date of filing the petition till its recovery. The division bench put a stay on this decision on the condition that if the respondents are unable to deposit the above amount in the court, then the interim orders will be lifted. On not depositing the amount, the division bench issued orders on July 15, 2024, to lift the stay on the decision of the single bench.

Given these facts, the court said since there is no interim order in favour of the respondent state, it is necessary to implement the arbitration award because the delay in depositing the award amount by the government is incurring interest on a daily basis, which is to be paid from the government exchequer. To ensure compliance with the arbitration award, the court ordered to attach Himachal Bhawan.