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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
VIBHU BAKHRU, C.J., C.M. POONACHA
Volvo Financial Services (India) Private Limited – Appellant
Versus
S.S. Constructions – Respondent
| Table of Content |
|---|
| 1. appellant's appeal arises from a commercial order. (Para 1 , 2 , 3 , 4) |
| 2. allegations of default and arbitration proceedings. (Para 5 , 6 , 7 , 8 , 9 , 10) |
| 3. court's analysis on jurisdiction and disclosure. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 4. interim measures are not warranted. (Para 18) |
| 5. appeal dismissed, interlocutory application disposed. (Para 19 , 20) |
JUDGMENT :
VIBHU BAKHRU, CJ.
1. The appellant has filed the present appeal under Section 37 (1)(b) of the Arbitration and Conciliation Act, 1996 [A&C Act impugning an order dated 24.10.2025 passed by the learned LXXXIV Additional City Civil and Sessions Judge, at Bengaluru [Commercial Court] in IA No.3 in Com. A.A No.368/2025, captioned M/s Volvo Financial Services (India) Private Limited v. M/s. S S Constructions and another.
2. The respondents had filed the said application seeking vacation of the ex parte order dated 06.09.2025, whereby the learned Commercial Court had appointed a receiver to take possession of the schedule assets and hand over the same to the appellant company. It is material to note that the said order was passed ex parte.
3. The appellant had filed an application ‒ I.A No.2 before the
Full disclosure of material facts is essential for obtaining interim relief; unilateral appointment of arbitrators is unauthorized under arbitration agreements.
Interim measures under the Arbitration and Conciliation Act allow arbitration tribunals to secure claims, especially under concerns of insolvency, as long as the actions align with just and convenien....
Inordinate delays in filing appeals under the Arbitration and Conciliation Act cannot be condoned without sufficient cause, emphasizing the need for expedient dispute resolution.
The arbitral tribunal has broad powers to issue interim measures under the Arbitration and Conciliation Act, ensuring protection of claims during ongoing proceedings.
Arbitration awards, lacking jurisdiction, do not equate to money decrees; interim relief granted during appeal pending jurisdictional determinations.
The court's role in arbitration proceedings is limited, and interference with the arbitrator's decision is only warranted if the arbitrator's view is not reasonable or plausible.
The appointment of an arbitrator in violation of the Arbitration and Conciliation Act renders the interim award unenforceable, emphasizing the necessity of proper notice and jurisdictional compliance....
An Arbitral Tribunal under the Arbitration and Conciliation Act cannot grant interim orders that effectively render final decisions on substantive claims, as this exceeds its jurisdiction.
The court emphasized the need to balance equities between the parties and highlighted the importance of following contractual provisions for submission of the final bill and processing thereof.
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