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2022 Supreme(Del) 154

IN THE HIGH COURT OF DELHI AT NEW DELHI
Mukta Gupta, Neena Bansal Krishna, JJ.
Cement Corporation Of India - Appellant
Versus
Promac Engineering Industries Limited - Respondent
FAO (OS)(COMM) 44/2022
Decided On : 29-03-2022

Advocates Appeared:
Mr.Shankar K.Jha, Advocate, Mr.Manu Monga, Advocate, for the Appellant, Mr.Trideep Pais, Sr. Advocate, Ms.Sanya Kumar, Advocate, Ms.Rakshandu Deka, Advocate, for the Respondent.

The main legal point established is that Section 9 of the A&C Act empowers the Court to grant interim measures and does not encompass challenges to procedural orders regarding arbitration fees.

Headnote:

A&C Act - Challenge to Procedural Orders - Section 9

Fact of the Case:

The appellant challenged the orders of the arbitral award under Section 9 of the Arbitration and Conciliation Act, 1996 (A&C Act) seeking to set aside the orders and a declaration of the arbitration fees payable.

Finding of the Court:

The court held that the challenge to procedural orders regarding arbitration fees does not fall within the ambit of Section 9 of the A&C Act, which empowers the Court to issue orders regarding interim measures of protection.

Issues: The main issue was whether the challenge to procedural orders of the Arbitral Tribunal regarding arbitration fees falls within the ambit of Section 9 of the A&C Act.

Ratio Decidendi: The court interpreted Section 9 of the A&C Act and concluded that it empowers the Court to grant reliefs which are in the nature of interim measures till the Arbitral Tribunal is constituted or unless the Court finds that circumstances exist which may not render the remedy provided under Section 17 efficacious.

Final Decision: The appeal was dismissed as the challenge under Section 9 of the A&C Act was not maintainable for the procedural orders challenged by the appellant.

ORDER

Mukta Gupta, J. (Oral). - CM APPL. 9237/2022 (for exemption)

1. Exemption allowed subject to just exceptions.

2. Application is disposed of.

CM APPL. 9235/2022 (for condonation of delay of 29 days in filing appeal)

1. For the reasons stated in the application and in view of the period of limitation having been extended by the Hon'ble Supreme Court in Suo Motu W.P.(C) 3/2020 Re :Cognizance for Extension of Limitation, delay of 29 days in filing the appeal is condoned.

2. Application is disposed of.

FAO (OS)(COMM) 44/2022

1. In the present appeal, the appellant challenges the impugned orders dated 20th December 2021, 17th December 2018 and 24th August 2021.

2. By the order dated 20th December 2021, the learned Single Judge dismissed OMP (I)(COMM) 410/2021 filed by the appellant under Section 9 of the Arbitration and Conciliation Act, 1996 (in short, the 'A&C Act'), wherein, it was inter alia prayed that the orders of the arbitral award dated 17th December 2018 and 24th August 2021 be set aside as also a declaration of the petitioner's calculation to be the arbitration fees payable to each of the Arbitrators as just and correct calculation in terms of Schedule IV of the A&C Act.

3. The learned Single Judge vide the impugned order dated 20th December 2021 noted that both the orders of the Arbitral Tribunal dated 17th December 2018 and 24th August 2021 were procedural orders passed by the Arbitral Tribunal fixing the fees payable by the parties and a challenge thereto under Section 9 of the A&C Act is not maintainable. The learned Single Judge noted that Section 9 of the A&C Act empowers the Court to issue orders regarding interim measures of protection. Clearly, the challenge to the procedural orders passed by the Arbitral Tribunal regarding arbitration fees does not fall within the ambit of Section 9 of the A&C Act.

    4. Section 9 of the A&C Act reads as under:-

    "9. Interim measures, etc. by Court. [(1)] A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with Section 36, apply to a Court:

    (i) for the appointment of a guardian for a minor or a person of unsound mind for the purposes of arbitral proceedings; or(ii) for an interim measure of protection in respect of any of the following matters, namely:

    (a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;

    (b) securing the amount in dispute in the arbitration;

    (c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;

    (d) interim injunction or the appointment of a receiver;

    (e) such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.

    [(2) Where, before the commencement of the arbitral proceedings, a court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the court may determine.

    (3) Once the arbitral tribunal has been constituted, the court shall not entertain an application under sub-section (1), unless the court finds that circumstances exist which may not render the remedy provided under Section 17 efficacious. "

    5. From a bare reading of Section 9 of the A&C Act, it is evident that the same empowers the Court to grant reliefs which are in the nature of interim measures till the Arbitr

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