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
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:
(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:
Abdul Jabar Butt v. State of J&K
CIT v. Indo-Mercantile Bank Ltd.
Kandla Export Corporation and Ors. v. OCI Corporation and Ors.: (2018) 14 SCC 715
An appeal under Section 13(1A) of the Commercial Courts Act is maintainable only against orders specified in Order XLIII of the CPC, and the dismissal of an application under Order VII Rule 10 CPC is....
An appeal under Section 13(1A) of the Commercial Courts Act lies only as against the orders mentioned in Order XLIII of CPC, under Section 37 and any other provision which provides for an appeal unde....
The proviso in Section 13 of the Commercial Courts Act qualifies the generality of the main provision by providing an exception, and appeals from orders passed in commercial causes would lie only in ....
Appeals against dismissal of execution applications under the Commercial Courts Act must conform to specified orders in Order XLIII CPC and Section 37 of the Arbitration Act, emphasizing the limits o....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.