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DELHI HIGH COURT
RAJIV SAHAI ENDLAW, AMIT BANSAL
Janta Associates and Co. Ltd. – Appellant
Versus
Indian Oil Foundation – Respondent
| Table of Content |
|---|
| 1. exemption applications in procedural context. (Para 1 , 2) |
| 2. scope of section 9 application under arbitration act. (Para 3 , 4) |
| 3. court’s power to grant final relief under admitted liability. (Para 5 , 6) |
| 4. conditions for granting relief and contract compliance. (Para 7 , 8) |
| 5. appellant's failure to prove entitlement to relief. (Para 9 , 10 , 12) |
| 6. restrictions on expanding application scope in appeal. (Para 11) |
ORDER
[VIA VIDEO CONFERENCING]
CM No.16979/2021 (for exemption)
1. Allowed, subject to just exceptions and as per extant rules.
2. The application is disposed of.
FAO(OS) (COMM) 76/2021 & CM No.16978/2021 (for stay)
3. This appeal, under Section 37 of the Arbitration and Conciliation Act, 1996 read with Section 13(1A) of the COMMERCIAL COURTS ACT , 2015, impugns the order dated 11th May, 2021 of the Commercial Division, of dismissal of OMP(I)(COMM) No.74/2020 preferred by the appellant.
4. The Commercial Division has dismissed the Section 9 application of the appellant, holding that (i) the relief claimed therein of directing the respondents to pay to the appellant Rs.1,89,91,737/-, was in the nature of a final relief which could not be granted in exer
Section 9 of the Arbitration Act only permits interim reliefs; final relief claims must be adjudicated by the Arbitral Tribunal.
The court emphasized the need to balance equities between the parties and highlighted the importance of following contractual provisions for submission of the final bill and processing thereof.
Arbitration Application – Grant if interim relief - Court exercising appellate jurisdiction against an order in a Section 9 application, do not even have jurisdiction
Jurisdiction of the Commercial Court cannot be conferred by consent, and stays of execution must be clearly established. Section 9 of the Arbitration Act does not replace execution procedures.
The court clarified that admitted liabilities in financial statements should be protected under Section 9, emphasizing the need for timely interim relief in arbitration to prevent infructuous proceed....
Arbitration – Admitted liability - if an Award is passed by the Arbitrator, the same is executable and is not rendered infructuous.
Interim measures – Direction to furnish security in form of Performance Bank Guarantees is contingent upon fulfilment of certain conditions.
The court emphasized that an interim order under Section 9 must be granted when there is evidence of admitted liability to avoid making arbitration proceedings infructuous.
(1) There is no hard and fast rule that application made earlier in point of time must be heard before application made later in point of time.(2) Under Section 36 of Arbitration and Conciliation Act....
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