IN THE HIGH COURT OF DELHI
Chandra Dhari Singh, J.
Biba Apparels Private Limited - Appellant
Versus
Shabnam Enterprises - Respondent
O.M.P.(I)(COMM.) 245 of 2019
Decided On : 13-12-2022
| Table of Content |
|---|
| 1. petitioner's claim and agreement background. (Para 1 , 2 , 3 , 4) |
| 2. contractual obligations regarding materials. (Para 5 , 10 , 11 , 12) |
| 3. issue of non-completion of work orders. (Para 6 , 7 , 8 , 9) |
| 4. respondent's defense against claims. (Para 13 , 14 , 15 , 16 , 17) |
| 5. petition details and respondent's objections. (Para 20 , 21) |
| 6. jurisdiction and authority for interim orders. (Para 22 , 23 , 24 , 25 , 26) |
| 7. conclusion on petition merits and dismissal. (Para 27 , 28 , 29) |
ORDER
Chandra Dhari Singh, J. (Oral)--The Petitioner has filed the instant petition under Section 9 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as `the Act, 1996') read with Section 2(1)(c) of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Court Ordinance, 2015, praying for the following reliefs:
"a) Pass an ex-parte ad-interim injunction in favor of the Petitioner and against the Respondent thereby directing that the Respondent should not create any third party rights or sell or transfer the copyrighted raw material of the Petitioner to any third party; or
b) Pass an ex-parte ad-interim order in favor of the Petitioner, directing the Respondent to return all the finished products as has been contemplated in the Agreement dated 08.12.2016; or
c) Pass an Order directing the Respondent to furnish a sum of Rs.2,93,01,418/- as per the terms of the Agreement dated 08.12.2015, in the event that the Respondent fails to provide the finished goods to the Petitioner; and
d) Pass any other order(s) that this Hon'ble Court may deem fit and proper under the facts and circumstances of the present case."
2. The petitioner, M/s Biba Apparels Private Limited is a company registered under the provisions of the Companies Act, 1956 (hereinafter referred to as `the Companies Act'), having its registered office at 13th Floor, Capital Cyberscape, Ullahwas, Sector 59, Golf Course Extension Road, Gurugram.
3. The respondent is a proprietorship firm, M/s. Shabnam Enterprises having its registered office at RZ-172A, Main Dabri Nasirpur Road, Durga Park, New Delhi and its factory at RZ-87, Gali No.2, Dabri Extension, New Delhi-45.
4. Allegedly, the respondent firm had previously contacted the petitioner company in an effort to become its registered vendor. Agreement dated 8th December, 2016 (hereinafter referred to as the "Agreement") effective for a period of 3 years from the date of commencement, was executed between the parties in pursuance of numerous rounds of negotiations between the petitioner company and the respondent firm.
5. Learned counsel appearing for the petitioner has referred to the relevant provisions of the Agreement during the course of his submissions. Following is the reproduction of the relevant clauses from the agreement dated December 8th, 2016: Clause 2(i), 2(j), 3(i), 3(r), and Section 11 (Dispute Resolution Clause):
"2(i) THE PROCESSOR undertakes that he shall not hold any fabric/materials, goods, articles, received from BIBA or any dresses, outfits and costumes which belongs to BIBA prepared or to be prepared by THE PROCESSOR, for the non-payment against any previous delivery. In the event of THE PROCESSOR resorts to any such means, BIBA shall have the right to terminate this Agreement and take civil and criminal action against THE PROCESSOR.
2(j) The Debit notes (other than aforesaid invoices), if any, will be cleared by either Party immediately.
3(j) THE PROCESSOR shall be responsible for all the material and goods entrusted to THE PROCESSOR by BIBA till the finished dresses, outfits and costumes are handed over to BIBA. THE PROCESSOR will check all the fabrics, materials, dress, outfits and costumes as the case may be on a daily basis to ensure consistent quality. THE PROCESSOR being only a job work contractor, all fabrics/materials, goods and other articles including design supplied by BIBA shall be the sole 'I property of BIBA and THE PROCESSOR shall always be the
A party seeking interim relief under Section 9 of the Arbitration & Conciliation Act must demonstrate a manifest intention to invoke arbitration proceedings, which was not established by the petition....
The main legal point established in the judgment is that under Section 9(3) of the Arbitration and Conciliation Act, 1996, the Court should intervene only in exceptional circumstances when the Arbitr....
The arbitration proceedings can only be challenged on jurisdictional grounds established under the Arbitration and Conciliation Act, and timeliness in raising such challenges is critical.
The main legal point established is that the filing of a petition under Section 11(6) of the 1996 Act is not subject to a period of limitation and is covered by the residual provision Article 137 of ....
The limited grounds for interference with an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996, emphasize the concept of patent illegality and the criteria for setting asi....
Section 9 of the 1996 Act cannot be used as a tool to compel the opposite party to pay money to the claimant.
The dismissal of a petition under Section 34 of the Arbitration Act was justified due to the petitioner's failure to meet limitation requirements, as procedural defects impeded timely filing.
A court cannot grant permanent relief under Section 9 of the Arbitration and Conciliation Act, as its provisions are limited to interim measures to support arbitration, not for final outcomes.
The relief sought under Section 9 of the Arbitration Act is interim in nature and cannot be a permanent measure.
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