Deepak Kumar Tiwari, J.
1. Dr. NK Shukla, Sr. Advocate with Shri Anumeh Shrivastava and Miss Priya Mishra, counsel for the petitioner.
2. Shri Rajeev Shrivastava, Sr. Advocate with Shri Akshay Shail, Advocate for the respondents.
3. Heard on IA No. 1/2023, application for grant of stay.
4. Shri Shukla, learned Senior Counsel appearing on behalf of the petitioner would submit that an award has been passed by the Arbitration Tribunal against the Raipur City Bus Limited, a Company incorporated under the provisions of the Companies Act, 1956 in favour of respondent No. 1/claimant M/s. Shree Kanhaiyya Transport Services Private Limited on 26th March, 2016. The claimant/decree holder has moved an application under Section 47 read with Section 151 of the CPC, 1908, in an execution proceeding, to proceed against the Municipal Corporation, Raipur and the Raipur Development Authority, as being the governing body of the judgment debtor. Rs. 6,88,93,645/- is the decretal amount, out of which payment of Rs. 35,22,193/- only was made on 9th March, 2021 by cheque and an affidavit was also filed by the CEO of the concerned company stating that the property available against the judgment debtor i.e. Raipur City Bus Limited has been valued at Rs. 32,95,568/- only, as the Raipur City Bus Limited has been formed by the Municipal Corporation, Raipur and the Raipur Development Authority on the orders of the Urban Administration and Development Department, Government of Chhattisgarh and the shareholder of the judgment debtor includes the Collector, Raipur; Commissioner, Municipal Corporation, Mayor, Raipur; Superintendent of Police, Raipur; the Chairman, Raipur Development Authority; Chief Executive Officers and the Executive Directors, CEDMP, so after lifting the corporate veil, the Municipal Corporation, Raipur and the Raipur Development Authority are liable to pay the said awarded amount and the judgment debtor opposing the said prayer specifically stated that the Municipal Corporation, Raipur is the statutory body incorporated under the provisions of the Municipal Corporation Act, 1956, and the Raipur Development Authority is separate legal entity. By the impugned order dated 6th December, 2022, the Commercial Court, (District Level), Nawa Raipur, Chhattisgarh, in execution case No. 11/2017, without affording an opportunity to the Municipal Corporation and the Raipur Development Authority, has passed an order that the award be executed against the Raipur Municipal Corporation and the Raipur Development Authority. Accordingly, notice be issued to the said authorities. Learned Senior Counsel further submits that by passing the impugned order, even fundamental principle of natural justice has not been complied with, therefore, the effect and operation of the impugned order may be stayed.
5. Per contra, Shri Shrivastava, learned Senior Counsel appearing on behalf of decree holder/claimant would support the impugned order on submission that in the impugned order, the principle of natural justice has been complied with for lifting of corporate veil and according to the said principle, the Raipur Development Authority and the Municipal Corporation, Raipur, at whose behest the company has been formed, are equally liable to pay the decretal amount. He further submits that Section 8 of the Commercial Courts Act deals with the bar against the revision application or petition against interlocutory orders and the petitioner has a remedy to challenge the said order by way of appeal. He also submits that under Article 227 of the Constitution of India, the impugned order cannot be assailed. Reliance is placed in the matter of Radhe Shyam & Another Vs. Chhabi Nath & Others {(2015) 5 SCC 423 [LQ/SC/2015/292] }. Learned Senior Counsel fairly submits that the Municipal Corporation, Raipur and the Raipur Development Authority have already raised an objection before the Commercial Court, which is pending consideration and he has no objection to proceed further for execution after hearing the objection.
6. Heard learned counsel for the parties at length and perused the documents annexed with the petition with utmost circumspection.
7. Admittedly, the impugned order has been passed without affording an opportunity to the Municipal Corporation, Raipur and the Raipur Development Authority. In that view of the matter, this Court is of the view that it is a fit case where the effect and operation of the impugned order can be stayed. Accordingly, it is directed that the effect and operation of the impugned order shall remain stayed till the next date of hearing. The concerned Commercial Court is further directed to decide the objection raised by the Municipal Corporation Raipur and the Raipur Development Authority. Since the Municipal Corporation, Raipur and the Raipur Development Authority are claiming that they are separate entity and according to the applicable principles, they are not liable to pay any decretal amount which is payable by the Raipur City Bus Limited. After deciding the said objection, the Commercial Court shall proceed further in accordance with law.
8. In view of the above, IA No. 1/2023, application for grant of stay, stands disposed of.
