Judgment Debtor's Partial Payment and Non-Compliance with Court Directions Prompt Notice and Potential Civil Imprisonment Proceedings
In a significant judgment delivered on October 9, 2026, the Delhi High Court, presided over by Justice Tushar Rao Gedela, directed SpiceJet Limited, the judgment debtor, to maintain approximately Rs.58.8 crore in its disclosed bank accounts pending the execution of an arbitral award upheld by the Supreme Court. This decision arises from a protracted legal battle initiated by M/s. Travel2Agent.Com and others, the decree holders, who have struggled to recover the awarded sum despite the highest court affirming the arbitral award.
The case centers on an arbitral award dated October 31, 2012, which was modified under Section 34 of the Arbitration and Conciliation Act, 1996, and subsequently upheld by the Supreme Court upon dismissal of SpiceJet's Special Leave Petition. The decree holders claimed that SpiceJet had failed to deposit the decretal amount, which stood at Rs.83,80,846, barring a partial payment of Rs.25 lakhs made only after initiation of execution proceedings.
During the hearing, the decree holders revealed that SpiceJet maintains two bank accounts - one with ICICI Bank, Connaught Place branch, and another with IDFC Bank at Barakhamba Road, New Delhi. The court, therefore, ordered SpiceJet to preserve funds amounting to Rs.58,80,856 in these accounts until the next hearing scheduled for November 27, 2026. This move aims to ensure that sufficient funds remain available to satisfy the decree holder's claim.
Further, the Court noted SpiceJet's failure to file objections despite multiple opportunities and their non-compliance with an earlier court direction mandating the filing of an affidavit disclosing income and assets. The decree holders filed an application under Order XXI Rule 41(3) of the Civil Procedure Code, 1908, seeking civil imprisonment of an officer of SpiceJet for disobedience of the court's order dated January 29, 2026. The Court issued notice on this application as well and permitted the judgment debtor to file objections within four weeks.
The Court also granted an application filed by the decree holders under Section 151 of the CPC, exempting them from effecting advance service upon SpiceJet in the execution proceedings.
This judgment underscores the judiciary's firm stance on enforcing arbitral awards and ensuring compliance with court orders. It also highlights the procedural remedies available to decree holders in execution proceedings, including attachment of bank accounts and detention of officers for non-compliance.
The matter has been listed for further hearing on November 27, 2026.
Bottom Line:
Execution of arbitral award - Judgment debtor having failed to file objections and having deposited only part amount despite award being upheld up to Supreme Court - High Court directed judgment debtor to maintain balance decretal amount in disclosed bank accounts and issued notice on application seeking civil imprisonment for non-filing of affidavit of income and assets.
Statutory provision(s):
Civil Procedure Code, 1908 Order XXI Rule 41(3), Order XXI Rule 46, Section 151; Arbitration and Conciliation Act, 1996 Sections 34, 36
M/s. Travel2Agent.Com v. M/s. Spice Jet Limited, (Delhi) : Law Finder Doc Id # 2997241
