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IN THE HIGH COURT AT CALCUTTA
ARINDAM MUKHERJEE
Beevee Enterprises – Appellant
Versus
L & T Finance Limited – Respondent
JUDGMENT :
ARINDAM MUKHERJEE, J.
1. This is an appeal under Section 37 (2) (b) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the 1996 Act’) arising out of an order dated 23rd May, 2025 passed by the Learned Arbitral Tribunal granting an order of attachment before judgment under Section 17 of the said Act.
2. The arbitration agreement in the instant case is contained as Clause 8 of the SME Business Loan Agreement dated 22nd June, 2024 (hereinafter referred to as the said “agreement”) a copy whereof is annexed at page 15 of the stay application. The arbitration clause (hereinafter referred to as the “Arbitration agreement”) does not provide for any named Arbitrator but says that “All disputes, differences and/or claims arising out of or in relation to this Agreement shall be settled by arbitration in accordance with the provisions of the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and the same shall be referred to arbitration by a sole arbitrator to be nominated/appointed by the Lender”. The lender in the instant case means the respondent.
3. The appellants by referring the arbitration agreement say that the Arbitrator has bee
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.
Point of law: No power vested with the Arbitrator to act as a Civil Court and enforce the order. This is quite clear from sub section (2) of Section 17 which specifies that the order so passed by the....
The court may exercise jurisdiction under Section 9 of the Arbitration and Conciliation Act if the remedy under Section 17 is found to be inefficacious, particularly regarding third parties not party....
The court may exercise jurisdiction under Section 9 of the Arbitration and Conciliation Act if the remedy under Section 17 is found to be inefficacious.
The arbitral tribunal has broad powers to issue interim measures under the Arbitration and Conciliation Act, ensuring protection of claims during ongoing proceedings.
Arbitration agreement - Order of termination of contract - Jurisdiction of learned Arbitrator having been circumscribed by the order of reference of this Court, no fault can be found with interpretat....
The court upheld the validity of interim relief under Section 9 of the Arbitration Act, emphasizing that strict adherence to procedural rules is not mandatory if a prima facie case exists.
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....
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