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IN THE HIGH COURT OF KERALA AT ERNAKULAM
N.NAGARESH
Cheraman Financial Services Limited, Represented By Its Chief Financial Officer Mr. Ramesh Shenoi, S/o. Surendra Shenoi – Appellant
Versus
Reserve Bank Of India, Rep By Its Chairman – Respondent
| Table of Content |
|---|
| 1. petitioner involved in financial services seeks arbitration. (Para 1 , 2) |
| 2. disobedience of arbitrator's order by banks is contested. (Para 3) |
JUDGMENT :
The petitioner is a Company promoted by the Kerala State Industries Development Corporation (KSIDC). The petitioner is involved in the business of providing financial services and carrying out equipment leasing and hire purchase finance activities.
3. The petitioner states that the Banks operating under a licence of the Reserve Bank of India cannot take such untenable stand. Such disobedience will defeat the very purpose of the Arbitration and Conciliation Act. As per Section 17(2) of the Arbitration and Conciliation Act, an interim order passed by an Arbitrator is enforceable in the same manner as an order of the Court.
5. Standing Counsel representing the 2nd respondent- Bank resisted the writ petition. The orders passed by an Arbitrator can be enforced only through civil courts, urged the Standing Counsel. Orders of the Arbitrator will have to be executed invoking the provisions of the Code of Civil Procedure. The writ petition is therefore without any merit and is liable to be dismissed, contended the Standing C
Arbitral orders must be enforced through civil courts, as per the Arbitration and Conciliation Act, 1996.
Arbitration – Interim Award - when the dispute is a commercial dispute as defined under the Commercial Court Act, the Civil Court competent to enforce the interim order is the Commercial Court.
Point of law: No power vested with the Arbitrator to act as a Civil Court and enforce the order. This is quite clear from sub section (2) of Section 17 which specifies that the order so passed by the....
The arbitral tribunal cannot enforce its own orders; enforcement must be through a civil court, ensuring the protection of third-party rights.
The interim order of an Arbitral Tribunal is enforceable as a court order, and the District Court cannot require a separate application for its enforcement.
The executing court for arbitral orders operates ministerially, adhering strictly to the order's enforceability without reviewing the arbitral decision's merits, ensuring minimal judicial interferenc....
The court reinforced that unilateral appointment of an arbitrator violates the Arbitration and Conciliation Act, leading to invalid proceedings, hence, a new arbitrator must be appointed.
(1) There is nothing in Arbitration Act that prohibits contracting parties from agreeing to a provision providing for an award being made by an Emergency Arbitrator.(2) No appeal lies under Section 3....
Arbitration Application – Grant if interim relief - Court exercising appellate jurisdiction against an order in a Section 9 application, do not even have jurisdiction
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