HIGH COURT OF DELHI
Valmiki J. Mehta, J.
Shyam Telecom Ltd. - Appellant
Versus
Icomm Ltd. - Respondent
O.M.P.No. 160/2010
Decided On : 19-03-2010
Arbitration and Conciliation Act, 1996 - Section 34 - Challenge to an order of Arbitral Tribunal dismissing an application for amendment - Challenge to an order of Arbitral Tribunal dismissing an application for amendment - Such order is not an interim award - Petition challenging the same u/s 34 of the Act is not maintainable.
1. By this petition under Section 34 of the Arbitration and Conciliation Act, 1996 the petitioner challenges the order dated 1st December, 2009 passed by the sole arbitrator. By the impugned order, the amendment application which was filed by the petitioner was dismissed. It is contended that in spite of the fact that it is only an amendment application which has been dismissed by the impugned order, this order amounts to an interim or partial Award.
2. It is trite that objections under Section 34 would be filed only if there is an Award. No doubt the Award need not be a final Award but it can also be an interim or partial Award, but, all the same it has to be an Award. An interim or partial Award, in my opinion would take colour from Section 2(2) of the Code of Civil Procedure, 1908, in that the said order must decide finally, on merits, a particular part of the disputes between the parties. Section 2(2) of the CPC reads as under:- “ 2. Definitions-In this Act, unless there is anything repugnant in the subject or context,-- xxx xxx xxx (2) “decree” means the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint and the determination of any question within 1[* * *] Section 144, but shall not include- (a) any adjudication from which an appeal lies as an appeal from an order, or (b) any order of dismissal for default. Explanation.-A decree is preliminary when further proceedings have to be taken before the suit can be completely disposed of. It is final when such adjudication completely disposes of the suit. It may be partly preliminary and partly final.”
Section 31(6) of the Act is also relevant and the same reads as under :- “31. Form and contents of arbitral award- xxx xxx xxx (6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award.” Clearly an interim Award has to be on a matter with respect to which a final Award can be made i.e. the interim Award is also the subject matter of a final Award. Putting it differently therefore an interim Award has to take the colour of a final Award. An interim Award is a final Award at the interim stage viz a stage earlier than at the stage of final arguments. It is a part final Award because there would remain pending other points and reliefs for adjudication. It is therefore, that I feel that an interim Award has to be in the nature of a part judgment and decree as envisaged under Section 2 (2) of CPC and the same must be such that it conclusively determines the rights of the parties on a matter in controversy in the suit as done in a final judgment. An interim order thus cannot be said to be an interim Award when the order is not in the nature of a part decree. In my opinion the impugned order in view of what I have said hereinabove, is not an interim Award as it is not in the nature of a part decree being only an interim order.
3. In interpreting the meaning to be ascribed to an interim Award, it is necessary to keep in mind Section 5 of the Act and the same reads as under:- “5. Extent of judicial intervention.-Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part.”
4. The Supreme Court has now repeatedly held that arbitration is a chosen forum between the parties and the functioning of which should not ordinarily be interfered with. The Supreme Court has said the mechanisms in the new Act are to further one of the main objects of the Act and which is to avoid delay in the conduct of the arbitration proceedings. This aspect should always be kept in mind by the Courts w
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