SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(Del) 312

IN THE HIGH COURT OF DELHI AT NEW DELHI
VIBHU BAKHRU, AMIT MAHAJAN, JJ.
H.P. Cotton Textile Mills Ltd - Appellant
Versus
Oriental Insurance Company Limited - Respondent
EFA(OS) (COMM) 15 of 2018
Decided on : 23-01-2023

Advocate Appeared:
For the Appellant :Ms Shantha Devi Raman, Mr Arihant Jain and Mr Rishabh Kapoor, Advocates.
For the Respondent:Mr Udyan Srivastava, Advocate.

Headnote:

Civil Procedure Code, 1908 – Arbitration and Conciliation Act, 1996 – Section 36 – Commercial Courts Act, 2015 – Section 13 – Enforcement – Appeals from decrees of commercial Court and commercial divisions – Appellant has filed present intra-court appeal impugning an order learned Single Judge, disposing of appellant’s petition for enforcement of an arbitral award said order – Held, Commercial Courts Act has to be read in an expansive manner cannot be read as limiting right to appeal conferred are contrary to decision of Supreme Court in Kandla Export Corporation– It also apparent that said decision of Supreme Court was not brought to the notice of this Court in D&H India – Appeal accordingly rejected.

JUDGMENT :

VIBHU BAKHRU, J.

1. The appellant has filed the present intra-court appeal impugning an order dated 31.08.2018 passed by the learned Single Judge, disposing of the appellant’s petition for enforcement of an arbitral award dated 19.10.2016. Admittedly, the said order has been passed under Section 36 of the Arbitration and Conciliation Act, 1996 (hereafter ‘the A&C Act’).

2. The learned counsel for the respondent has raised a preliminary objection regarding maintainability of the present appeal. He contends that the order impugned in this appeal is not appealable. Thus, the principal question to be addressed at this stage is whether the present appeal is maintainable under Section 13 of the Commercial Courts Act, 2015 (hereafter ‘the Commercial Courts Act’)

3. In terms of Section 36 of the A&C Act, an arbitral award is required to be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (hereafter ‘CPC’) in the same manner as if it were a decree of the Court.

4. Section 13 of the Commercial Courts Act provides for appeals from decrees of Commercial Courts and Commercial Divisions. In terms of Sub-section (1A) of Section 13 of the Commercial Courts Act, an appeal would lie to the Commercial Appellate Division against a judgment or order of the Commercial Court at the level of the District Judge, or as the case may be, of a Commercial Division of the High Court. However, proviso to Sub-section (1A) to Section 13 of the Commercial Courts Act expressly provides that an appeal shall lie from such orders passed by the Commercial Division or a Commercial Court that are specifically enumerated under Order XLIII of the CPC as amended by the Commercial Courts Act and Section 37 of the A&C Act. Further, sub-section (2) of Section 13 of the Commercial Courts Act expressly proscribes an appeal against any order or decree of a Commercial Division or a Commercial Court other than in accordance with the provisions of the Commercial Courts Act. For ready reference, Section 13 of the Commercial Courts Act is set out below:

    “13. Appeals from decrees of Commercial Courts and Commercial Divisions.—(1) [Any person aggrieved by the judgment or order of a Commercial Court below the level of a District Judge may appeal to the Commercial Appellate Court within a period of sixty days from the date of judgment or order.

(1A) Any person aggrieved by the judgment or order of a Commercial Court at the level of District Judge exercising original civil jurisdiction or, as the case may be, Commercial Division of a High Court may appeal to the Commercial Appellate Division of that High Court within a period of sixty days from the date of the judgment or order:

Provided that an appeal shall lie from such orders passed by a Commercial Division or a Commercial Court that are specifically enumerated under Order XLIII of the Code of Civil Procedure, 1908 (5 of 1908) as amended by this Act and section 37 of the Arbitration and Conciliation Act, 1996 (26 of 1996).]

(2) Notwithstanding anything contained in any other law for the time being in force or Letters Patent of a High Court, no appeal shall lie from any order or decree of a Commercial Division or Commercial Court otherwise than in accordance with the provisions of this Act.”

5. Undisputedly, the order passed by the learned Single Judge is not appealable under Section 37 of the A&C Act. It is also not one of the orders enumerated under Order XLIII of the CPC, from which an appeal lies. Thus, on plain reading of the proviso to Section 13(1A) of the Commercial Courts Act, the present appeal would not be maintainable.

6. The Supreme Court in Kandla Export Corporation and Ors. v. OCI Corporation and Ors.: (2018) 14 SCC 715 had authoritatively explained that the scope of appeal under Section 13(1A) of the Commercial Courts Act is controlled by the proviso to the said Sub-section. The relevant extract of the said decision is set out below:

    “13. Section 13(1) of the Commercial Courts Act, with w

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon Back to top