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IN THE HIGH COURT OF JHARKHAND AT RANCHI
HON’BLE MR. JUSTICE SUJIT NARAYAN PRASAD, HON’BLE MR. JUSTICE PRADEEP KUMAR SRIVASTAVA
The Government @ State of Jharkhand through Department of Transport - Petitioner
Versus
M/s K.S Softnet Solution Private Ltd. – Opposite Party
C.M.P. No.875 of 2023
Decided On : 05-02-2024
[MAINTAINABILITY] - [Article 227, Arbitration and Conciliation Act, 1996, Commercial Courts Act, 2015] - [Sections 13, 37] - [The court analyzed the maintainability of a petition filed under Article 227 of the Constitution of India, referencing the Arbitration and Conciliation Act, 1996, particularly Section 37, which outlines appealable orders, and the Commercial Courts Act, 2015, specifically Section 13, which delineates the appellate forum for commercial disputes. The court concluded that since none of the conditions for appeal under Section 37 were met, the petition under Article 227 was not maintainable, emphasizing the need for adherence to the statutory framework established for commercial disputes.]
Fact of the Case:
The case involved a challenge to an order passed by the Commercial Court in an execution proceeding related to an interim arbitral award. The State filed a petition under Article 227 of the Constitution, contesting the maintainability of the petition based on the provisions of the Arbitration and Conciliation Act, 1996 and the Commercial Courts Act, 2015.
Finding of the Court:
The court found that the petition under Article 227 was not maintainable as the conditions for appeal under Section 37 of the Arbitration and Conciliation Act were not satisfied. The court emphasized that the statutory framework provided by the Commercial Courts Act must be followed for appeals arising from commercial disputes.
Issues: The primary issue was whether the petition filed under Article 227 of the Constitution was maintainable in light of the provisions of the Arbitration and Conciliation Act, 1996 and the Commercial Courts Act, 2015.
Ratio Decidendi: The court held that the maintainability of a petition under Article 227 is contingent upon the existence of a jurisdictional error. Since the appealable orders under Section 37 of the Arbitration and Conciliation Act were not applicable, the petition was deemed not maintainable.
Final Decision: The court dismissed the petition as not maintainable under Article 227 of the Constitution of India, vacated the interim order, and left the petitioner to seek other remedies for redressal of grievances.
ORDER :
HON’BLE MR. JUSTICE SUJIT NARAYAN PRASAD
1. The application has been filed under Article 227 of the Constitution of India challenging the order dated 13.07.2023 passed by the learned Presiding Officer, Commercial Court, Ranchi, in Commercial Execution Case No. 02 of 2023.
2. The petition since has been filed under Article 227 of the Constitution of India and hence, the objection has been raised regarding maintainability of the instant petition.
3. Mr. Sachin Kumar, learned Additional Advocate General appearing for the State assisted by Ms. Surabhi has submitted that the instant petition is well maintainable on the basis of the following grounds:-
(ii) It has been submitted by referring to the provision of Section 37 (1) of the Arbitration and Conciliation Act, 1996 which provides three eventualities to invoke the jurisdiction conferred to this Court under Section 37 of the Arbitration and Conciliation Act, 1996, namely –
(a) Refusing to refer the parties to arbitration under Section 8;
(b) Granting or refusing to grant any measure under Section 9;
(c) Setting aside or refusing to set aside an arbitral award under Section 34.
4. It has been submitted that none of the conditions as stipulated under Section 37 of the Arbitration and Conciliation Act, 1996 is available and hence, the appeal will not lie in view of the provision of Section 37 of the Arbitration and Conciliation Act, 1996.
5. It has been submitted by referring to the Commercial Courts Act, 2015 wherein the forum has been carved out under Chapter IV thereof as under Section 13(1) and (1-A).
6. Sub-Section (1) of Section 13 confers jurisdiction to provide a forum to a person aggrieved by the Judgment or the order of the commercial court below the level of a District Judge may appeal to the Commercial Appellate Court within a period of 60 days from the date of Judgment or order to provide, a forum to person aggrieved by the Judgment or order of the commercial court at the level of District Judge exercising original Civil Jurisdiction or, as the case may be, Commercial Division of the High Court may appeal to the Commercial Appellate Division of that High Court within a period of sixty days from the date of judgment or the order.
7. It has been contented by referring to Section 13 of the Commercial Courts Act, 2015 that the order said to be appealable under Section 37 of the Act, 1996, will only be appealed under Section 13 of the Act, 2015.
8. Since, none of the conditions as numerated under Section 37 of the Act 1996 is available, hence the appeal will not lie under Section 13 (1-A) before the Commercial Appellate Division of the High Court.
9. The submission, therefore, has been made that is the reason the instant petition has been filed under Article 227 of the Constitution of India. Hence, it cannot be said that this petition is not maintainable under Article 227 of the Constitution of India.
10. Per contra, Mr. Baibhaw Gahlaut, learned counsel appearing for the respondent, has submitted that since herein the order passed by the Presiding Officer, Commercial Court, Ranchi has passed an order of attachment of the property in course of the execution proceeding being Execution Case No. 02 of 2023 who is at the level of the District Judge or exercising the Civil jurisdiction and hence, the appeal will lie under Section 13(1-A) of the Commercial Court Act, 2015.
11. It has further been contended that merely because none of the conditions as enumerated under Section 37 of the Act, 1996 is there, as such the petition under Article 227 will be filed even if the same is appealable in view of the provision of Section 13(1-A) of the Commercial Courts Act, 2015.
12. As such, the submission has been made that the instant petition is not maintainable under Article 227 of the Constitution of India.
13. We
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