Back
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
C.M. POONACHA
Sharada Vidyaniketan – Appellant
Versus
Thubarahalli Foundation Trust – Respondent
JUDGMENT :
C.M. POONACHA, J.
1. The present petition is filed under Section 37 (1)(b) of the Arbitration and Conciliation Act, 1996 [Hereinafter referred to as ‘Act of 1996’] calling in question the order dated 22.11.2022 passed in AA No.42/2022 by the CCH 70 LXIX Additional City Civil and Sessions Judge, Bengaluru, [Hereinafter referred to as ‘Trial Court’]
2. The relevant factual matrix in a nutshell, leading to the present appeal is that the appellant is an institution, which has been allotted a property, by the Government of Karnataka vide registered Lease Deed dated 08.07.2004, wherein it had constructed a building. The appellants being desirous of starting an educational institution and having obtained affiliation from the requisite statutory authorities, entered into a Memorandum of Fee Sharing Agreement, [Hereinafter referred to as ‘MOU’] dated 06.03.2017 with the respondents, whereunder the respondent had paid a sum of `1.00 crore and was required to make further periodic payments. The respondent was permitted to use the property of the appellants for the purpose of running an educational institution.
3. Various disputes arose between the parties culminating in the appellants
The court affirmed that interim orders under Section 9 of the Arbitration and Conciliation Act, 1996 automatically vacate if arbitration is not initiated within the stipulated time frame.
The court reinforced that unilateral appointment of an arbitrator violates the Arbitration and Conciliation Act, leading to invalid proceedings, hence, a new arbitrator must be appointed.
Automatic vacation of ad-interim injunction – Where an interim order has been granted on application made under Section 9 of Arbitration and Conciliation Act, 1996 but no arbitral proceedings are ini....
Under Section 9 of the Arbitration Act, failure to commence arbitral proceedings within 90 days of an interim order may terminate proceedings unless extensions are granted due to ongoing enforcement ....
Point of law: When a suit or proceeding is not thrown out in limine but the Court receives it for consideration and disposal according to law, it must be regarded as entertaining the suit or proceedi....
Once an Arbitral Tribunal is constituted, Section 9 of the Arbitration Act prohibits further applications for interim relief unless the party shows that the remedy under Section 17 is ineffective.
Under Section 9(2) of the Arbitration and Conciliation Act, failure to initiate arbitration proceedings within the statutory period can lead to the vacating of interim orders issued by the court.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
