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1995 Supreme(Cal) 97

High Court Of Calcutta
Bijitendra Mohan Mitra
BAY VIEW SHIPPING CORPORATION - Appellant
Versus
SARANA TRADING CO. - Respondent
C. R.  2  Of  1995
Decided On : 03/29/1995

Advocates Appeared:
D.R.Parekh

PETITIONS UNDER ORDER 14 RULE 2, SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT, AND SECTION 34 OF THE ARBITRATION ACT ARE SUBJECT TO SPECIFIC CONDITIONS AND CANNOT BE INVOKED IN ALL CASES.

Headnote:

FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT, 1961 - SECTION 3 - ORDER 14 RULE 2, ORDER 8 RULE 1, ORDER 6 RULE 1, 2, 3, 48 RULE 3 - THE COURT UPHELD THE DISMISSAL OF PETITIONS FILED BY THE DEFENDANT UNDER ORDER 14 RULE 2, SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT, AND SECTION 34 OF THE ARBITRATION ACT. HOWEVER, IT REMANDED THE PETITION FILED UNDER SECTION 151 OF THE CODE OF CIVIL PROCEDURE FOR RE-HEARING.

Fact of the Case:

THE DEFENDANT IN A SUIT FOR DECLARATION, INJUNCTION, AND RECOVERY OF GENERAL AVERAGE CLAIM DAMAGES AND COMPENSATION FILED FOUR PETITIONS: (1) UNDER ORDER 14 RULE 2 OF THE CODE OF CIVIL PROCEDURE (CPC) FOR DISMISSAL OF THE SUIT FOR WANT OF JURISDICTION, (2) UNDER SECTION 151 CPC FOR DISCHARGING THE AD-INTERIM INJUNCTION OR STAY OF PROCEEDINGS, (3) UNDER SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT, 1961, AND (4) UNDER SECTION 34 OF THE ARBITRATION ACT READ WITH SECTION 151 CPC. THE TRIAL COURT DISMISSED ALL FOUR PETITIONS, AND THE DISTRICT JUDGE UPHELD THE DISMISSAL. THE DEFENDANT THEN FILED A REVISION APPLICATION.

Finding of the Court:

THE COURT HELD THAT THE PETITION UNDER ORDER 14 RULE 2 WAS PREMATURE AS ISSUES WERE NOT FRAMED AND NO WRITTEN STATEMENT WAS FILED. IT ALSO HELD THAT THE PETITION UNDER SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT WAS MISCONCEIVED AS THE AGREEMENT IN QUESTION WAS NOT A NULLITY OR INOPERATIVE. FURTHER, THE COURT HELD THAT THE PETITION UNDER SECTION 34 OF THE ARBITRATION ACT COULD NOT BE INVOKED AS THE DEFENDANT HAD ALREADY TAKEN STEPS IN AID OF THE SUIT BY FILING AN AFFIDAVIT ADDRESSING THE MATERIAL PROPOSITIONS OF FACT AND LAW.

Issues: 1. WHETHER THE PETITION UNDER ORDER 14 RULE 2 OF THE CODE OF CIVIL PROCEDURE WAS MAINTAINABLE. 2. WHETHER THE PETITION UNDER SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT WAS MAINTAINABLE. 3. WHETHER THE PETITION UNDER SECTION 34 OF THE ARBITRATION ACT COULD BE INVOKED.

Ratio Decidendi: 1. ORDER 14 RULE 2 OF THE CODE OF CIVIL PROCEDURE CAN ONLY BE INVOKED AFTER ISSUES ARE FRAMED AND A WRITTEN STATEMENT IS FILED. 2. SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT, 1961 CAN ONLY BE INVOKED IF THE AGREEMENT IN QUESTION IS A NULLITY OR INOPERATIVE. 3. SECTION 34 OF THE ARBITRATION ACT CANNOT BE INVOKED IF THE DEFENDANT HAS ALREADY TAKEN STEPS IN AID OF THE SUIT.

Final Decision: THE COURT UPHELD THE DISMISSAL OF PETITIONS FILED BY THE DEFENDANT UNDER ORDER 14 RULE 2, SECTION 3 OF THE FOREIGN AWARDS (RECOGNITION AND ENFORCEMENT) ACT, AND SECTION 34 OF THE ARBITRATION ACT. HOWEVER, IT REMANDED THE PETITION FILED UNDER SECTION 151 OF THE CODE OF CIVIL PROCEDURE FOR RE-HEARING.

B. M. MITRA, J.

( 1 ) THE present Revisional application is directed against an order passed by the learned District Judge at Port Blair dated 12th October, 1994 in Misc. Appeal No. 1 of 1994 reversing the Judgment and Order No. 11 dated 13th April, 1994 passed by the learned Senior Sub-Judge at Port Blair in O. S. No. 6 of 1994. The connected suit is for declaration, injunction, recovery of general average claim damages and compensation valued at U. S. $ 25,30,413. 00 equivalent to Rs. 7,64,18,472. 60p. (RUPEES SEVEN CRORES SIXTY FOUR LAKHS EIGHTEEN THOUSAND FOUR HUNDRED SEVENTY TWO AND PAISE SIXTY ONLY ). The said suit was filed on 7. 3. 1994 along with a petition for injunction and by an order dated 7. 3. 1994 the Trial Court passed an ad-interim order directing the defendant to remove cargo from the vessel M. V. Arti after furnishing sufficient Bank guarantee/security bond with security for the full amount within fifteen days from the date of service of the notice. Pursuant to the said order of ad-interim injunction the defendant appeared on 18. 3. 1994 and one K. Harish claiming himself to be constituted Attorney of the defendant had filed four petitions as follows : (1)petition under order 14 Rule 2 of the Code of Civil Procedure praying for disposal of the suit in limine for want of jurisdiction. (2)petition under Section 151 praying for discharging the ad-interim order or alternatively or stay of proceeding. (3)petition under Section 3 of the Foreign Awards (Recognition and Enforcement) Act 1961. (4)petition Under section 34 of the Arbitration Act read with Section 151 of C. P. C.

( 2 ) THE learned Trial Judge by a reasoned order dismissed all the above noted four petitions by a composite order. Being aggrieved by the same, an appeal was taken out before the Court of the learned District Judge at Port Blair in Misc. appeal No. 1/1994.

( 3 ) THIS Revisional Court will first deal with the portion of the order namely the petition under order 14 Rule 2 of the C. P. C. It is significant to mention at the very outset that order 14 Rule 2 has suffered a significant amendment by 1976 amendment of the C. P. C and now it has been specifically laid down that the Court may try an issue of law first only when it will relate to the jurisdiction of the Court or the same will be in the context of a bar to the suit created by any law for the time in force. In the Trial Court's order a cryptic reference was made about an affidavit affirmed by one K. Harish before the Trial Court sometime in the month of March, 1994 and the same has been attempted to be described as written statement in substance and/or in disguise. The nomenclature used by the trial court apparently appears to be an ingenuous expression, because the same has been contemplated in specific terms under order 8 Rule 1 of the C. P. C. In order to understand the connotation of order 8 Rule 1 that reference may be made to order 6 Rule 1 defining the meaning of the word 'pleading'. Order 6 Rule 3 envisages forms of pleading and they are to be read in Consonance with order 48 Rule 3 of the C. P. C.

( 4 ) MR. DR. Parekh, learned Advocate appearing on behalf of the petitioner has tried to draw a line of distinction between the concept of formats of pleading and substance of pleading. According to the contention of Mr. Parekh, the substance of pleading is required to be looked into in terms of order 6 Rule 2 of the C. P. C. Apart from the question of compliance with the forms of pleadings, Civil Rules and orders contemplate the stages when written statement will be required to be filed. Normally, a date is required to be fixed for the purpose of filing written statement and it should be in terms of the form as contained in appendix -'a' being supported by a proper verification. Pleadings are required to be supported by verification and verification is a compulsory part of a pleading otherwise it does not derive sanction. Unless a written statement is not in form then on the gro



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