IN THE HIGH COURT OF DELHI
Mukta Gupta, Neena Bansal Krishna, JJ.
Cement Corporation of India - Appellant
Versus
Promac Engineering Industries Limited - Respondent
FAO (OS)(COMM) 44 of 2022
Decided On : 29-03-2022
| Table of Content |
|---|
| 1. challenge to procedural orders under a&c act. (Para 5 , 6) |
| 2. court's interpretations of section 9 of a&c act. (Para 7 , 9 , 10) |
| 3. unfounded contentions regarding maintainability. (Para 8) |
| 4. dismissal of appeal and disposal of application. (Para 11 , 12) |
JUDGMENT
Mukta Gupta, J. (Oral)
CM APPL. 9237/2022 (for exemption)
1. Exemption allowed subject to just exceptions.
2. Application is disposed of.
CM APPL. 9235/2022 (for condonation of delay of 29 days in filing appeal)
3. For the reasons stated in the application and in view of the period of limitat ion having been extended by the Hon'ble Supreme Court in Suo Motu W.P.(C) 3/2020, Re: Cognizance for Extension of Limitation, delay of 29 days in filing the appeal is condoned.
4. Application is disposed of.
FAO (OS)(COMM) 44/2022
5. In the present appeal, the appellant challenges the impugned orders dated 20th December 2021, 17th December 2018 and 24th August 2021.
6. By the order dated 20th December 2021, the learned Single Judge dismissed OMP(I)(COMM) 410/2021 filed by the appellant under Section 9 of the Arbitration and Conciliation Act, 1996 (in short, the `A&C Act'), wherein, it was inter alia prayed that the orders of the arbitral award dated 17th December 2018 and 24th August 2021 be set aside as also a declaration of the petitioner's calculation to be the arbitration fees payable to each of the Arbitrators as just and correct calculation in terms of Schedule IV of the A&C Act.
7. The learned Single Judge vide the impugned order dated 20th December 2021 noted that both the orders of the Arbitral Tribunal dated 17th December 2018 and 24th August 2021 were procedural orders passed by the Arbitral Tribunal fixing the fees payable by the parties and a challenge thereto under Section 9 of the A&C Act is not maintainable. The learned Single Judge noted that Section 9 of the A&C Act empowers the Court to issue orders regarding interim measures of protection. Clearly, the challenge to the procedural orders passed by the Arbitral Tribunal regarding arbitration fees does not fall within the ambit of Section 9 of the A&C Act.
8. Section 9 of the A&C Act reads as under:
"9. Interim measures, etc. by Court.--[(1)] A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with Section 36, apply to a Court:
(i) for the appointment of a guardian for a minor or a person of unsound mind for the purposes of arbitral proceedings; or
(ii) for an interim measure of protection in respect of any of the following matters, namely:
(a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;
(b) securing the amount in dispute in the arbitration;
(c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;
(d) interim injunction or the appointment of a receiver;
(e) such other interim measure of protection as may appear to the Court to be just and convenient, and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.
[(2) Where, before the commencement of the arbitral proceedings, a court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the court may determine.
(3) Once the arbitral tribunal has been constituted, the court shall not entertain an application under s
Procedural orders by an Arbitral Tribunal regarding fees are not subject to challenge under Section 9 of the Arbitration and Conciliation Act, 1996.
The main legal point established is that Section 9 of the A&C Act empowers the Court to grant interim measures and does not encompass challenges to procedural orders regarding arbitration fees.
The court clarified that the residuary clause in Section 9(1)(ii)(e) of the Arbitration and Conciliation Act does not permit intervention for issues pertaining to fee calculation by the Tribunal.
The residuary clause of Section 9(1)(ii) of the Arbitration and Conciliation Act, 1996 does not cover orders passed by the Tribunal concerning the calculation of fee based on the interpretation of th....
The court held that challenges to procedural orders of an arbitral tribunal regarding fees do not fall within the scope of interim measures under Section 9 of the Arbitration and Conciliation Act.
Under Section 9(2) of the Arbitration and Conciliation Act, failure to initiate arbitration proceedings within the statutory period can lead to the vacating of interim orders issued by the court.
The court clarified that once an application for interim relief under Section 9 of the Arbitration Act is entertained, it can proceed despite the constitution of an Arbitral Tribunal, unless the reme....
A party must demonstrate a manifest intention to initiate arbitration to seek interim measures under Section 9 of the Arbitration & Conciliation Act.
Arbitration Application – Grant if interim relief - Court exercising appellate jurisdiction against an order in a Section 9 application, do not even have jurisdiction
Orders granting or refusing ex-parte interim measures under Section 9 of the Arbitration and Conciliation Act, 1996 are appealable under Section 37, despite the Commercial Courts Act, 2015.
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.