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2025 Supreme(Del) 740

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. HARI SHANKAR, OM PRAKASH SHUKLA, JJ.
Government Of India Through Joint Secretary, Ministry Of Petroleum And Natural Gas - Appellant
Versus
Vedanta Limited & Anr. – Respondents
FAO(OS) (COMM) 225 of 2024, CM APPL. 58706 of 2024 & CM APPL. 58708 of 2024.
Decided on : 31-07-2025

Advocates Appeared:
For the Appellant :Mr. Vikramjit Banerjee, ASG, Mr. K.R. Sasiprabhu, Mr. Vishnu Sharma, and Ms. Namrata Saraogi, Advocates Mr. Amitesh Chandra Mishra and Mr. Harshit S. Gahlot, Advs.
For the Respondent:Mr. Jayant Mehta, Sr. Advocate with Ms. Shruti Sabharwal, Mr. Rachit Bansal and Mr. Rajat Sinha, Advocates, Mr. Rishab Aggarwal, Adv.

Appeals under the Commercial Courts Act must strictly adhere to specified provisions; orders under Section 151 of the CPC are not appealable as they fall outside established criteria.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 47, 49, 50 - Commercial Courts Act - Section 13(1-A) - Appeal against orders of learned Single Judge regarding maintainability - Respondents moved applications under Section 151 of CPC, which dismissed appeals as not maintainable as they did not fall under specified provisions for appeal - Courts cannot extend appeal rights beyond statutory provisions. (Paras 14-22)

(B) Inherent Powers - The inherent power of the court cannot override express provisions of CPC, and cannot be invoked when alternative remedies exist (Paras 12.1-12.4)

(C) Final Orders - The appeals were dismissed due to being not maintainable without addressing the merits of the case (Paras 20-22).

Facts of the case:
The court dealt with appeals concerning the encashment of bank guarantees tied to arbitration awards, originally decided in foreign jurisdictions.

Findings of Court:
Appeals were found to be not maintainable as they did not align with provisions of the Commercial Courts Act and other applicable statutes.

Issues: Main issues included whether appeals based on orders under Section 151 of the CPC were maintainable under the Commercial Courts Act.

Ratio Decidendi: The court held that appeals can only be filed as specified in the Commercial Courts Act, and Section 151 orders do not confer a right of appeal.

Result: Appeals dismissed.

Table of Content
1. maintainability of appeals (Para 1 , 2)
2. application procedures under cpc (Para 3 , 4 , 5)
3. arguments on appealability (Para 9 , 10 , 11 , 12)
4. court's jurisdiction on appeals (Para 14 , 15 , 16 , 17)
5. analysis of statutes for appeals (Para 18 , 19 , 20)
6. dismissal of appeals (Para 21 , 22)

JUDGMENT :

C. HARI SHANKAR, J.

1. Inasmuch as the present judgment decides these appeals on the aspect of maintainability, it is not necessary for us to delve deep into the facts. Suffice it, therefore, to state that arbitral proceedings between the parties culminated in a partial arbitral award dated 12 October 2004 and final arbitral award dated 26 October 2016. The seat of arbitration was Malaysia.

2. The appellant challenged the aforesaid awards before the competent courts in Kuala Lumpur and lost.

3. Thereafter the respondents being the successful award holders moved OMP (EFA) (COMM) 15/2016,Cairn India Ltd & ors v Govt of Indiaand OMP (EFA) (COMM) 5/2017, Vedanta Ltd & anr v Govt of India,under Sections 47 and 49 of the Arbitration and Conciliation Act, 1996, ["the 1996 Act”, hereinafter]. In the said appeals, in OMP (EFA) (COMM) 5/2017, the respondent-award holder moved EX. APPL(OS) 635/2024 and EX. APPL(OS) 1105/2024 - DIR. In OMP (EFA) (COMM) 15/2016, the respondents moved EX APPL (OS) 1316/2024. The prayers in the applications were identical, and identical orders have been passed therein, leading to the present appeals.

4. All applications were preferred under Section 151 , [151. Saving of inherent powers of Court. – Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court.]of the CPC, [Code of Civil Procedure, 1908].

5. In EX. APPL (OS) 635/2024, the respondent, while seeking early hearing, advanced an alternate prayer for a restraint against the appellant from renewing four bank guarantees for an amount of Rs.94,11,13,692/- provided by them as well as a direction to the ICICI Bank, which had issued the said Bank Guarantees, not to encash them till the next date of hearing.

6. In EX. APPL (OS) 635/2024, a learned Single Judge of this Court, by order dated 24 April 2024, restrained the encashment of four bank guarantees furnished by the respondent subject to an undertaking being provided by the respondent as directed in the said order. For ready reference, para 7 of the order dated 24 April 2024 may be reproduced as under:

“7. In the meanwhile, the bank guarantees will not be encashed, subject to an undertaking being filed by the award holder- company through an authorised representative, supported by a Board Resolution, to the effect that fresh bank guarantees for the requisite amount will be furnished, if so directed by the Court on 15.05.2024 or thereafter. The undertaking will also state that, in the event there is any impediment in furnishing of fresh bank guarantees or invocation of the present bank guarantees after 12.05.2024, the award holder will deposit the amounts secured by the bank guarantees into Court, in terms of any directions that the Court may pass. The undertaking be filed by 01.05.2024.”

7. EX. APPL (OS) 1105/2024-DIR also instituted by the respondent, sought a restraint against the encashment of six other bank guarantees provided by the respondent, amounting to Rs.134,77,25,758/-. By order dated 26 July 2024, passed in the said application, a learned Single Judge directed thus:

“4. It is, therefore, directed that till the next date of hearing, the petitioner need not renew the 6 Bank Guarantees amounting to Rs. 134,77,25,758/- till 06.08.2024 subject to an undertaking being filed by the decree holder - company through an authorised representative, supported by a Board Resolution, to the effect that fresh bank guarantees for the requisite amount will be furnished, if so directed by the Court on 06.08.2024 or thereafter. The undertaking will also






























































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