2018 Supreme(Kar) 356
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DINESH MAHESHWARI, KRISHNA S. DIXIT, JJ.
Radiant Info systems Limited - Petitioners
Versus
The Karnataka State Road Transport Corporation - Respondents
Writ Petition Nos.19822 of 2018 & 19834 of 2018 (GM-RES)
Decided On : 27-08-2018
For the Petitioners:Sri. Arun Kumar. K, Advocate.
For the Respondents:Sri. P.D. Surana, Advocate.
Headnote:
Constitution Of Indian,1950 - Article 226 or 227 - Civil Procedure Code, 1908 - Arbitration and Conciliation Act, 1996 - Section 24(3) - Termination of contract - Amenable to jurisdiction - Proceeding for this purpose was commenced and concluded today- It is noticed from these proceedings that on every day of marking of these documents both sides had been producing fresh lot of documents on record of this proceeding piling up heap of documents running into several hundreds of pages- Both parties are made known that whatever documents that were in their custody and were not produced till today their production will not be permitted to further pile up lot of documents except of course reserving liberty to parties to confront either party in cross examination with any material document –Held, Case of SREI Infrastructure Finance Ltd- (supra) to contend that a writ petition is maintainable against orders passed by Arbitral Tribunal but we are afraid no such ratio is discernible from said decision- Therein Arbitral Tribunal had terminated proceedings Section due to non-filing of claim by claimant but question was as to whether Tribunal had jurisdiction to consider an application for recalling of order terminating proceedings- On said question Supreme Court endorsed views of Patna Delhi and Madras High Courts that Arbitral Tribunal even after termination of proceedings Act on sufficient cause being shown could recall order and recommence proceeding and held that in given case Arbitral Tribunal committed an error in holding that it had no jurisdiction to recall order terminating proceedings- In said case a question was also raised as to whether order passed Court in writ jurisdiction will not interfere in an interlocutory order passed by Arbitrator in pending arbitral proceeding and that party aggrieved may reserve its right to lay a challenge to such an interlocutory order if and when it suffers an adverse award – Petition dismissed
1. In these Writ Petitions, the petitioner-company seeks to question the orders dated 21.02.2018 and 26.04.2018 made by the Sole Arbitrator in the matter of A.C.No.128/2017, whereby, respectively, the Arbitrator notified the parties that no further documents shall be received in the matter; and rejected the petitioner’s application seeking permission to produce additional documents.
2. The brief facts and relevant background aspects of the matter are as under:
(a) Pursuant to the order of this Court in C.M.P. No.236/2016, the dispute between the parties as regards termination of contract came to be referred to the Sole Arbitrator Sri Justice Mohammed Anwar for holding the arbitration proceedings under the aegis of the Arbitration and Conciliation Center, Bengaluru. Both the sides have filed their pleadings and the documents in support of their respective stand.
(b) The Sole Arbitrator in the first sitting on 31.01.2018, fixed a Time Table for the conduct and conclusion of the proceedings. The documents produced by the parties were marked too. On the next date of hearing, which was held on 21.02.2018, the Arbitrator put the parties to the notice that they would not be permitted to produce any further document. The relevant part of the order sheet as drawn by the Sole Arbitrator on 21.02.2018 reads as under:
“9. Both parties have concluded their marking and exhibiting of their respective documents. The proceeding for this purpose was commenced on 14.02.2018 and concluded today. It is noticed from these proceedings that on every day of marking of these documents both sides had been producing fresh lot of documents on record of this proceeding piling up the heap of documents running into several hundreds of pages. Both parties are made known that whatever documents that were in their custody and were not produced till today, their production will not be permitted to further pile up the lot of documents except of course reserving liberty to the parties to confront the either party in cross examination with any material document.”
(c) The issues were framed on 05.03.2018 and the matter was set down for recording the evidence of claimant by way of affidavit, on 14.03.2018.
(d) On 15.03.2018, the petitioner filed an application under Section 24(3) of the Arbitration and Conciliation Act, 1996 (‘the Act’) for production of 16 documents while stating, inter alia, that the said documents are relevant for answering the issues as framed, inasmuch as the documents earlier produced before the framing of issues would not suffice to prove the stand taken by the petitioner/claimant. The application so moved was opposed by the respondent herein.
(e) The Sole Arbitrator, after hearing the parties, has dismissed the said application of the petitioner with a cost of Rs.25,000/- by the impugned order dated 26.04.2018.
3. Learned counsel for the petitioner, Sri Arun Kumar has vehemently argued that although most of the documents were produced before framing of the issues, the necessity to seek permission to produce some more documents arose after examining the issues; that a party to the litigation would be able to decide as to whether the evidence should be led or not, and as to what kind/nature of evidence should be led, only after examining the issues; and that the right to lead the evidence cannot be defeated on the ground that the parties have already produced some evidence along with the pleadings before framing of the issues.
4. Per contra, learned counsel for the respondent Sri P.D. Surana has contended that whatever be the procedure prescribed by the Code of Civil Procedure, 1908, it is always open to the Arbitral Tribunal to prescribe its own procedure, the provisions of CPC being inapplicable; the Arbitrator by the order dated 21.02.2018 had specifically made it clear to both the parties that the documents already produced by the parties would be taken in evidence and no more documents would be permitted to be produced except for confronting