IN THE HIGH COURT OF DELHI
Rajiv Sahai Endlaw, J.
Sri Krishan - Appellant
Versus
Anand - Respondent
OMP. No. 597 of 2008
Decided On : 18-08-2009
JUDGMENT
Rajiv Sahai Endlaw, J. The short question which arises for consideration is, whether a petition under Section 9 of the Arbitration Act 1996 lies for the same interim measure which has already been granted to the petitioner by the arbitral tribunal on an application being made by the petitioner under Section 17 of the Act. The petitioner seeks to justify the present petition inspite of an order of the arbitral tribunal in his favour, for the reason of the said order being toothless and unenforceable.
2. The counsel for the petitioner has urged, that this petition is maintainable because the petitioner is remediless in the event of violation by the respondent of the interim order passed by the arbitrator; however if the same order is passed against the respondent by this court also, in exercise of powers under Section 9 of the Act, in the event of breach thereof, the petitioner shall have remedy of contempt of court against the respondent. It is further contended that the Act is a complete code within itself and nowhere provides for the consequences of breach of such an order of the Arbitral Tribunal under Section 17 of the Act; that under Section 36 of the Act it is only the award passed by the arbitral tribunal which is enforceable under the CPC and there is no such parallel provision for the enforcement of the order under Section 17 of the Act. It is further the contention that no petition for contempt of court also lies despite violation of the order of the arbitral tribunal and the provisions of the Contempt of Court 1979 also apply only to the willful disobedience of a judgment/order/direction of writ or other process of the court only - an arbitral tribunal is not a court. It is further submitted that even the provisions of Order 39 Rule 2A of the CPC apply to the breach of an order passed under Order 39 Rules 1 and 2 of the CPC only and Rule 2A also has no applicability to the orders made by the arbitral tribunal under Section 17 of the Act.
3. Reliance in this regard is placed on:
(a) extracts from the textbook "Law of Arbitration and Conciliation" by Justice Dr B.P. Saraf wherein it is observed that Section 17 neither grants the arbitral tribunal the power to enforce its order nor provides for judicial enforcement of such order of the arbitral tribunal and that the only consequence of a party not taking the interim measure of protection as ordered by the arbitral tribunal is of such failure being taken into account in the final decision by the arbitral tribunal, particularly in any assessment of damages.
(b) Judgment of this court in NHAI Vs M/s China Coal Construction Group Corporation, AIR 2006 Delhi 134 holding that the pendency of an application under Section 17 before the arbitral tribunal does not denude the court of its power to make order of interim protection under Section 9 of the Act.
c) Judgment of the Supreme court in M/s Sundaram Finance Ltd. Vs M/s NEPC India Ltd., AIR 1999 SC 565, also observing in para 12 thereof that though Section 17 gives the arbitral tribunal the power to pass orders, the same cannot be enforced as orders of a court and it is for this reason only that Section 9 gives the court power to pass interim orders during the arbitration proceedings.
4. I may notice that the Supreme Court not only in Sundaram Finance Ltd. (supra) but even subsequently in M.D. Army Welfare Housing Organisation Vs Sumangal Services Pvt. Ltd., AIR 2004 SC 1344, had held in para 56 of the judgment that under Section 17 of the Act no power is conferred on the arbitral tribunal to enforce its order nor does it provide the judicial enforcement thereof.
5. Per contra, the counsel for the respondent has argued that the interim order of the arbitrator under Section 17 of the Act will merge in the final award and will then be enforceable. Hence he has argued on the merits of the matter.
6. Before considering the legal aspect aforesaid, it is deemed appropriate to record that though the petitioner
(1) There is nothing in Arbitration Act that prohibits contracting parties from agreeing to a provision providing for an award being made by an Emergency Arbitrator.(2) No appeal lies under Section 3....
Contempt proceedings for violation of arbitration orders must follow appropriate remedies under the Arbitration and Conciliation Act; direct petitions to the High Court are not maintainable.
Once an Arbitral Tribunal is constituted, Section 9 of the Arbitration Act prohibits further applications for interim relief unless the party shows that the remedy under Section 17 is ineffective.
The court may exercise jurisdiction under Section 9 of the Arbitration and Conciliation Act if the remedy under Section 17 is found to be inefficacious, particularly regarding third parties not party....
Point of law: No power vested with the Arbitrator to act as a Civil Court and enforce the order. This is quite clear from sub section (2) of Section 17 which specifies that the order so passed by the....
The court dismissed the petition, stating that the Tribunal had the authority to grant interim measures and that the petitioners had failed to demonstrate that the Section 17 remedy was inefficacious....
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.