IN THE HIGH COURT OF DELHI AT NEW DELHI
Chandra Dhari Singh, J.
Shri Aditya Medicart – Appellant
Versus
Tata 1mg – Respondent
O.M.P. (E) (COMM.) 7 of 2023 & I.A. 3951 of 2023
Decided On : 28-02-2023
Section 27 - Arbitration and Conciliation Act, 1996 - Court's assistance in taking evidence
Fact of the Case:
The Applicant filed an application under Section 27 of the Arbitration and Conciliation Act, 1996 seeking the Court's assistance in obtaining a CD filed by the Respondent in a previous case before the Sole Arbitrator.
Finding of the Court:
The Court found that the Applicant failed to obtain the approval of the arbitral tribunal for seeking the Court's assistance, rendering the petition unsustainable and in violation of the statutory provision.
Issues: The main issue was the lack of approval from the arbitral tribunal for seeking the Court's assistance in taking evidence.
Ratio Decidendi: The Court's assistance in taking evidence under Section 27 of the Act may only be sought with the approval of the arbitral tribunal.
Final Decision: The instant petition was dismissed as being defective and for being filed in violation of the statutory provision.
ORDER
Chandra Dhari Singh, J. (Oral)--The instant application under Section 27 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act") has been filed on behalf of the Applicant seeking the following reliefs:
"a) To call record, file and CD of case no. CS COMM NO. 492/2020 decided by Hon'ble court of Sh. Gurvinder Pal Singh DJ (Commercial Court)-02, Patiala House Court, New Delhi and present the same under court staff presence before the Sole arbitrator Sh. Charan Singh Verma, on 25.02.2023 in Arbitration petition 1130 of 2021.
b) To produce and present, record, file and CD of case no. CS COMM NO. 492/2020 decided by Hon'ble court of Sh. Gurvinder Pal Singh DJ (Commercial Court)-02, Patiala House Court, New Delhi and present the same under court staff presence before the Sole arbitrator Sh. Charan Singh Verma, on 25.02.2023 in Arbitration petition 1130 of 2021.
c) Pass such other order(s) and or direction(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case."
2. Learned counsel for the Applicant submitted that the Claimant in ARB. P. 1130/2021 has filed the present application under Section 27 of the Act seeking the Court's assistance in taking evidence by calling one CD filed by the Respondent No.1 in CS (COMM) 492/2020 before Gurvinder Pal Singh, DJ (Commercial Court)-02, Patiala House Court, New Delhi.
3. It is further submitted that on 13.01.2023 the Sole Arbitrator had directed the Claimant/Applicant to present the original CD. It is therefore submitted that the applicant requires the said file along with CD which was consigned to record room. In view of the aforesaid, it is prayed that this Court be pleased to allow the instant application.
4. Heard learned counsel for the Applicant and perused the record.
5. Section 27 of the Act reads as under:
"27. Court assistance in taking evidence.-
(1) The arbitral tribunal, or a party with the approval of the arbitral tribunal, may apply to the Court for assistance in taking evidence.
(2) The application shall specify-
(a) the names and addresses of the parties and the arbitrators;
(b) the general nature of the claim and the relief sought;
(c) the evidence to be obtained, in particular,-
(i) the name and address of any person to be heard as witness or expert witness and a statement of the subject-matter of the testimony required;
(ii) the description of any document to be produced or property to be inspected.
(3) The Court may, within its competence and according to its rules on taking evidence, execute the request by ordering that the evidence be provided directly to the arbitral tribunal.
(4) The Court may, while making an order under sub-section (3), issue the same processes to witnesses as it may issue in suits tried before it.
(5) Persons failing to attend in accordance with such process, or making any other default, or refusing to give their evidence, or guilty of any contempt to the arbitral tribunal during the conduct of arbitral proceedings, shall be subject to the like disadvantages, penalties and punishments by order of the Court on the representation of the arbitral tribunal as they would incur for the like offences in suits tried before the Court.
(6) In this section the expression "Processes" includes summonses and commissions for the examination of witnesses and summonses to produce documents.
6. From a bare perusal of the provision, it is evident that the arbitral tribunal, or a party with the approval of the arbitral tribunal, may apply to the Court for assistance in taking evidence. Section 27 of the Act thus provides that the Court's assistance in taking evidence may be sought if the arbitral tribunal, or a party with the approval of the arbitral tribunal, applies to the Court for assistance in taking evidence. Therefore, the condition precedent for seeking the assistance of the Court under the aforementioned provision is the approval of the arbitral tribunal.
7. In the present case, the Applicant has bee
The court upheld the authority of the Arbitral Tribunal to permit a party's request for assistance in summoning witnesses under the Arbitration and Conciliation Act, 1996.
The Court emphasized that the role under Section 27 of the Arbitration and Conciliation Act is not adjudicatory, but only to grant formal approval of the Arbitrator's order.
Court's intervention in arbitration proceedings is limited to cases of glaring error; otherwise, Arbitral Tribunal's decisions on witness summons will be upheld.
The Court clarified that only the Arbitral Tribunal can initiate representation under Section 27(5) of the Arbitration Act, and the petitioner's conduct undermined the arbitration process, leading to....
The arbitrator has the discretion to determine procedural matters, including the necessity for oral evidence, and courts should only interfere in exceptional circumstances.
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