2011 (5) ALD 327
High Court of Andhra Pradesh
GODA RAGHURAM & G. KRISHNA MOHAN REDDY
M/s. Bilasraika Sponge Iron Pvt., Ltd., Rep., by its Director Balraj Agarwal
Versus
M/s. Devi Trading Company, rep., by its Special Power of Attorney, Holder K.H. Monappa
Civil Miscellaneous Appeal No.100 of 2011
Decided on : 30-03-2011
Code of Civil Procedure, 1908 – Section 151 – Order XXXVIII Rule 5, Order-XXXVIII Rule 6, Order XLIII Rule 1 (q) – Order III Rule 2, Order-III Rule 4 – Arbitration and Conciliation Act, 1996 – Section 9 – Andhra Pradesh Civil Courts Act, 1972 – Section 33, 36, 37 – The Andhra Pradesh Civil Rules of Practice and Circular Orders, 1990 – Rule 32, 33 – Procedure under APCCA 1972 – Civil Miscellaneous Appeal – The respondent in this appeal filed an Arbitration Original Petition (O.P.) under Section 9 of the Arbitration and Conciliation Act, 1996 – In this appeal, the appellant sought suspension of the order of this Court in R & T.C.M.P., in Arbitration O.P. – The appellant specifically pleaded that the respondent herein had neither filed the Special Power of Attorney authorizing its Special Power of Attorney Holder to represent the respondent nor sought the permission of the Court as enjoined by Rule 32 of CRP and R & T Petition and R & T.C.M.P. ought not therefore to have been entertained – Held, the power to pass an order granting ad-interim measures before hearing the respondent in an application under Section 9 of the 1996 Act is also comprehended within the scope of the powers granted under Section 9 – This appeal is therefore maintainable as an appeal against an order passed under Section 9 of the 1996 – From the precedential guidance provided by the several decisions referred to hereinabove, it is clear that the failure of the respondent in seeking permission of this Court for Sri Monappa, the Special Power of Attorney Holder of the respondent to appear on behalf of the respondent (to prosecute the O.P. filed under Section 9 of the 1996 Act and the interlocutory application filed along therewith seeking ad-interim measures pending orders on the application filed under Section 9 of the 1996 Act, without filing an affidavit seeking leave of the Court for the agent to appear), is a curable defect and does not render the institution of R & T Petition and the R & T.P.; or their entertainment by this Court; or the order invalid – In any event, the said irregularity is cured by the respondent herein now filing I.A in Arbitration O.P. – No case is made out for interference in this appeal – Civil Miscellaneous Appeal Dismissed
(Per GR,J)
1. The respondent in this appeal filed an Arbitration Original Petition (O.P.) under Section 9 of the Arbitration and Conciliation Act, 1996 (for short ‘the 1996 Act’) for a direction to the appellant herein to furnish security for US $ 797951.42 equivalent to Rs.3,63,06,789-81 Ps., (at the rate of Rs.45-50 ps., per US $). Along therewith it filed an application under Section 9 of the 1996 Act read with Order XXXVIII Rule 5 and Section 151 of the Code of Civil Procedure, 1908 (for short ‘the CPC’) for a direction to the appellant herein to furnish security for the aforesaid amount within three days and for a simultaneous order of conditional attachment of the petition schedule properties, pending disposal of the O.P.
2. As the concerned Court, of the learned Chief Judge, City Civil Court, Hyderabad was in vacation, the respondent moved this Court under Section 33 of the Andhra Pradesh Civil Courts Act, 1972 (for short ‘the 1972 Act’) read with Section 151 CPC by way of Receive and Transmit applications to receive the O.P. and the interlocutory application filed therewith and transmit the same to the concerned Court. These were numbered as R & T. Petition No. 8 of 2011 and R & T. C.M.P.No. 9 of 2011 respectively.
3. This Court on 12-01-2011 passed an order in R & T.C.M.P.No. 9 of 2011: notice to the respondent to furnish security for the suit amount within a period of six weeks and in default, there shall be conditional attachment of the petition schedule property. Since under Section 33 of the 1972 Act, the order of this Court is deemed to be the order of concerned Court viz., of the learned Chief Judge, City Civil Court, Hyderabad, which has the jurisdiction over the O.P. and the interlocutory application therein, on re-opening after vacation, the respondent therein filed the present appeal inter alia contending that this Court ought to have rejected both the R & T Petition No. 8 of 2011 and R & T.C.M.P.No. 9 of 2011 instituted by the respondent represented by its Special Power of Attorney Holder – Sri K.H. Monappa, for non-compliance with the mandatory provisions of Rule 32 of The Andhra Pradesh Civil Rules of Practice and Circular Orders, 1990 (for short ‘the CRP’).
4. Rule 32 of the CRP reads:
“32. Party appearing by Agent:--
(1) When a party appears by any agent, other than an advocate, the agent shall, before making of or doing any appearance, application, or act, in or to the Court, file in Court the power of attorney, or written authority, thereunto authorizing him or a properly authenticated copy thereof together with an affidavit that the said authority still subsisting, or, in the case of an agent carrying on a trade or business on behalf of a party, without a written authority, an affidavit stating the residence of his principal, the trade or business carried on by the agent on his behalf and the connection of the same with the subject matter of the suit, and that no other agent is expressly authorized to make or do such appearance, application, or act.
(2) The Judge may thereupon record in writing that the agent is permitted to appear and act on behalf of the party; and unless and until the said permission is granted, no appearance, application, or act, of the agent shall be recognized by the Court.”
5. In C.M.A.C.M.P.No. 264 of 2011 in this appeal, the appellant sought suspension of the order of this Court dated 12-01-2011 in R & T.C.M.P.No. 9 of 2011, which on transmission to the Court of the learned Chief Judge, City Civil Court, Hyderabad, was re-numbered as I.A.No. 392 of 2011 in Arbitration O.P.No. 358 of 2011. In paragraph No.4 of the affidavit accompanying C.M.A.C.M.P.No. 264 of 2011, the appellant specifically pleaded that the respondent herein had neither filed the Special Power of Attorney authorizing Sri Monappa to represent the respondent nor sought the permission of the Court as enjoined by Rule 32 of CRP and R & T Petition No. 8 of 2011 and R & T.C.M.P.No. 9 of 2011 ought no
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