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2003 Supreme(Ker) 458

Judges : J.B.KOSHY,K.THANKAPPAN
Sundaram Finance Ltd. - Appellant
Versus
Radhamma - Respondent
Case No : Unnumbered M.F.A. No. of 2003
Decided On : 08/06/2003
Advocates Appeared :
Thottathil B. Radhakrishnan; For Appellant Government Pleader; For Respondents.

Headnote:

Arbitration and Conciliation Act 1996 – Sections 9, 37(1)(a), 8 – Arbitration Act, 1940 –Section 39 – Kerala High Court Act –Section 5 – Court Fees Act –Article 3(iii)(A)(1)(a) – Issue on Pay of Court fee –Whether an appeal is maintainable against an order passed as an interim measure? If appeal is maintainable, what is the court fee payable? These are the two questions considered in this order – Contention of the learned Government Pleader is that even though court fee payable on appeal is only provided in Art. 4 of Sch. II of the Court Fees Act, in view of S. 85 reference to 1940 Act is applicable to the new Act also and the decision in Chacko’s case (supra) needs reconsideration –Held, there is no specific provision under for filing an application before the original court or for filing an appeal under S. 37(1)(a) against orders passed under the Arbitration Act – It is very unfortunate that even though the Kerala Court Fees and Suits Valuation Act was amended by Amendment Act no provision was incorporated for payment of court fee for filing an appeal under S. 37 of the 1996 Act – Court fee payable on appeals filed to the High Court against orders passed are provided under Art. 3(iii) of Schedule II of the Court Fees Act – Since there is no other specific provision regarding the court fee payable for an appeal filed under S. 37(1)(a) to the High Court against the order passed under S. 9 of the new Act, court fee is payable in this case is as provided under the Court Fees Act – Here, in this case, Court has seen that there is no specific provision in the Court Fees Act prescribing fees in filing appeals to the High Court from an order passed under the Act – Therefore, Court is of the view that court fee is payable as per Art. 3(iii)(A)(1)(a) of Schedule II of the Court Fees Act –Order accordingly

Judgment :-

1. Whether an appeal is maintainable against an order passed under S.9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the 1996 Act') as an interim measure? If appeal is maintainable, what is the court fee payable? These are the two questions considered in this order.

2. The appellant, a finance company, in this case filed an application before the District Court as O.P. (Arb.) No. 22 of 2003 under S.9(2) of the Act to have the hired vehicle (under hire purchase agreement) seized through a Commission appointed pending arbitration proceedings. It is not disputed that arbitration proceedings are in progress involving the above hired vehicle.

3. S.9 of the 1996 Act is as follows:

"9. Interim measures by Court:- 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 S.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 repsect 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".

The learned District Judge dismissed the application. When the appeal was filed before this Court, Registry raised the above objections regarding maintainability of the appeal and regarding the court fee payable.

4. S.37(1) of the new Act provides as follows:

"37. Appealable orders:- (1) An appeal shall lie from the following orders (and from no others) to the Court authorised by law to hear appeals from original decree of the Court passing the order, namely:-

(a) granting or refusing to grant any measure under S.9;

(b) setting aside or refusing to set aside an arbitral award under S.34. (2) An appeal shall also lie to a court from an order of the arbitral Tribunal -

(a) Accepting the plea referred to in sub-s. (2) of sub-s. (3) of S.16; or

(b) granting or refusing to grant an interim measure under S.16."

S.37(1)(a) specifically provides for an appeal against granting or refusing to grant any measure under S.9. Therefore, answer to the first question is simple. The impugned order in this appeal is an appealable order and appeal is maintainable.

5. S.21 of the Kerala Court Fees and Suits Valuation Act, 1959 (hereinafter referred to as 'the Court Fees Act') reads as follows:?

"21. Fee how reckoned:- The fee payable under this Act shall be determined or computed in accordance with the provisions of this Chapter, Chapter VI, Chapter IX and Schedules I and II."

6. S.52 of the Court Fees Act also provides that fee payable in the appeal shall be the same as the fee that would be payable in the court of first instance on the subject matter of the appeal. It is now well settled that court fee is determined on the basis of the relief sought as held by the Full Bench of this Court in Scaria Joseph v. Mathai George, (1974 KLT 721 FB) and Sebastian v. State of Kerala, 1977 KLT 196. It is not disputed that if a specific court fee is mentioned in Schedule I or II as provided in S.21, the cour

























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