Delhi High Court seeks AAI reply on plea for Safdarjung airport attachment

As disputes regarding payments arose, the matter was referred for arbitration as per terms of agreement, following which sole arbitrator O P Goel, former Director General, CPWD, on December 23, 2015, awarded an amount of around Rs 1.23 crore, with 12 per cent interest if it was not paid within reasonable time.

Safdarjung Airport

The Delhi High Court issued a notice to Airport Authority of India (AAI) on an execution petition seeking directions for attachment of Safdarjung Airport to recover an arbitration amount of about Rs 1.49 crore, due to a private company.

“Issue notice…counsel for judgment debtor (AAI) accepts notice. He submits that he would like to take instructions regarding payment of the award amount,” said Justice Jayant Nath listing the matter for October 30. The matter pertains to a private company, represented by advocate Arpita Bhargava, which had entered into two agreements — in March 2005 and February 2007 —with the AAI to render architectural and engineering services for construction of the proposed International Terminal building at Trivandrum Airport.

As disputes regarding payments arose, the matter was referred for arbitration as per terms of agreement, following which sole arbitrator O P Goel, former Director General, CPWD, on December 23, 2015, awarded an amount of around Rs 1.23 crore, with 12 per cent interest if it was not paid within reasonable time.

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AAI moved Delhi High Court against the award. Dismissing the plea, Justice Vibhu Bakhru said on May 30, “the arbitral tribunal is a final authority on questions of facts and unless it is found that the findings are perverse or patently illegal, no interference with the arbitral award would be warranted.”

On behalf of the company, advocate Bhargava then filed the execution petition demanding attachment of Rajiv Gandhi Bhavan, Safdarjung Airport, to recover the dues amounting to nearly Rs 1.49 crore.

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