IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
Sanjay Kumar Sajan – Appellant
Versus
Meenakshi Gupta – Respondent
CM(M) 498 of 2023
Decided On : 27-03-2023
CPC - Execution of Arbitral Award - Objections under Section 47 read with Order XXI Rule 58 - Re-agitating grounds after dismissal under A&C Act not permissible
Fact of the Case:
The petitioner challenged the order dismissing objections under Section 47 read with Order XXI Rule 58 of the CPC, after similar objections were dismissed under the Arbitration and Conciliation Act, 1996 (A&C Act).
Finding of the Court:
The court found that re-agitating the same grounds after dismissal under the A&C Act was not permissible, as established by a judgment of a Coordinate bench of the court.
Issues: The issue was whether the petitioner could raise objections under the CPC after similar objections were dismissed under the A&C Act.
Ratio Decidendi: The court held that once objections under the A&C Act were dismissed, re-agitating the same grounds under the CPC was not permissible, based on the interpretation of relevant provisions and a judgment of a Coordinate bench.
Final Decision: The petition was dismissed as not maintainable, with no order as to costs.
JUDGMENT
Tushar Rao Gedela, J. (Oral)
[ The proceeding has been conducted through Hybrid mode ]
CM APPL. 14914/2023 (Exemption)
1. This is an application seeking exemption from filing certified copies of the annexures/documents.
2. Exemption is allowed, subject to all just exceptions.
3. The application stands disposed of.
CM(M) 498/2023
4. The petitioner challenges the order dated 17.02.2023 passed in Execution Civil No. 1145/2018 titled 'Meenakshi Gupta vs. Sanjay Kumar Sajan', whereby the learned Executing Court has dismissed the objection filed by the petitioner/judgment debtor under Section 47 read with Order XXI Rule 58 of the Code of Civil Procedure, 1908 (hereinafter as "CPC").
5. Mr. Abhas Kumar, learned counsel appearing for the petitioner submits that the learned Executing Court vide impugned order has summarily dismissed the objections filed by the petitioner and has simultaneously appointed bailiff to attach the properties of the petitioner/judgment debtor.
6. Learned counsel submits that the learned Executing Court ought to have examined the objections so raised for the purpose of ascertaining whether there is any ground at all for interfering with the execution proceedings.
7. Learned counsel submits that no such ground is discernible from the impugned order dated 17.02.2023.
8. Learned counsel submits that it was incumbent upon the learned Executing Court to render reasons based whereon the objections were dismissed. Having not done so, the impugned order is unsustainable in law and ought to be interfered with by this Court.
9. Per Contra, Mr. Vijay Kasana, learned counsel for the respondent submits that on the very same day, i.e. 17.02.2023, the objections under 34 of Arbitration and Conciliation Act, 1996 (hereinafter as "A&C Act") alongwith an application under Section 5 of Limitation Act seeking condonation of delay in filing the objection under Section 34 of A&C Act were considered and dismissed.
10. Learned counsel submits that it was only on the dismissal of petition filed under Section 34 of A&C Act that the impugned order rejecting the objections raised by the petitioner was passed.
11. Learned counsel submits that the said rejection of the objections under Order XXI Rule 58 CPC is done purely in accordance with law and cannot be interfered with by this Court under the jurisdiction conferred by Article 227 of the Constitution of India.
12. Learned counsel appearing for the respondent refers to the judgment of a Coordinate bench of this Court in 'Hindustan Zinc Ltd vs. National Research Development Corporation' Neutral Citation No. 2023/DHC/000475, whereby this Court, in its judgment, in paragraphs 20 to 24, after considering the various judgments rendered by the Hon'ble Supreme Court and by interpreting various provisions of Arbitration and Conciliation Act, 1996, came to the firm conclusion that once the grounds raised in Section 34 of the A&C Act is dismissed, so far as such applicant is concerned, no objections under the Code of Civil Procedure, 1908 while executing the said arbitral award can be raised or dealt with by the Executing Court.
13. On the above basis, learned counsel submits that the present petition is not maintainable and ought to be dismissed in limine.
14. This Court has considered the rival submissions of parties as also perused the impugned order and the judgment of the Coordinate Bench in the case of Hindustan Zinc Ltd (supra).
15. That so far as the question of the petitioner raising objection under Section 47 read with Order XXI Rule 58, CPC is concerned, it appears to be no more res integra in view of the judgment of the Coordinate Bench in Hindustan Zinc Ltd, in that, a party cannot be permitted to raise a similar objection twice over. There cannot be a question of a second bite on the apple by a party having failed in the initial attempt under the Arbitration and Conciliation Act, 1996.
16. From a reading of the judgment of the Coordinate Bench Hindustan Zinc L
AI
Re-agitating grounds after dismissal under the A&C Act is not permissible under the CPC.
The court ruled that the right to file objections in execution proceedings cannot be forfeited, emphasizing the principles of natural justice and the right to a fair hearing.
The dismissal of an execution case for default does not prevent the filing of a subsequent execution case within the limitation period.
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