2019 Supreme(Mad) 67
IN THE HIGH COURT OF JUDICATURE AT MADRAS
ABDUL QUDDHOSE, J.
The Chief Engineer - Petitioners
Versus
M/s. Prakash Constructions - Respondents
C.R.P.(NPD) Nos.4036 & 4044 of 2014 and CMP.Nos.8072 & 8073 of 2018
Decided On : 28-01-2019
For the Petitioners: Mr. Sri Charan Rangarajan, Special Government Pleader (Civil Side).
For the Respondent: Mr. S.R. Raghunathan.
Headnote:
Constitution of India - Article 227 - Code of Civil Procedure, 1908 - Arbitration and Conciliation Act, 1996 - Section 34 - Arbitral Awards - Claim - Whether a party against whom an Arbitral Award has been passed having lost all avenues to challenge the Arbitral Award under the provisions of the Act, 1996 is still empowered to raise objections during execution normally available to a Civil Court decree under the provisions of the CPC - Held, Even though, litigation policies were formulated by the state earlier, the effective implementation of those policies will reduce the avoidable financial strain in the public exchequer - This Court fervently hopes that the state formulates an effective litigation policy which is properly and effectively implemented in order to avoid unnecessary financial strain to the public exchequer - Civil Revision petitions dismissed
1. CMP. Nos. 8072 & 8073 of 2018 have been filed by the petitioners to restore the CRPs. which were dismissed for default on 03.02.2017 by this Court. Even though counter affidavits have been filed, the respondent has not raised any serious objection for allowing the applications. This court is also satisfied with the reasons contained in the affidavits and accordingly, CMP. Nos. 8072 & 8073 of 2018 are allowed as prayed for.
2. The point for determination in these revisions is whether a party against whom an Arbitral Award has been passed having lost all avenues to challenge the Arbitral Award under the provisions of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Act, 1996) is still empowered to raise objections during execution normally available to a Civil Court decree under the provisions of the Code of Civil Procedure, 1908.
Brief facts leading to the filing of the instant revisions under Article 227 of the Constitution of India:
3. The instant Civil Revision Petitions have been filed challenging the separate orders of attachment dated 05.03.2013 passed in E.P.No.27 of 2011 & E.P.No.28 of 2011 respectively by the learned IInd Additional District and Sessions Court, (Fast Track Court), Ranipet, Vellore District. The two Arbitral Awards passed against the petitioners in favour of the respondent are in POCMC.No.4 of 2009 and POCMC.No.2 of 2009.
4. During the pendency of the Arbitration in respect of two claims, the petitioners challenged the jurisdiction of the Arbitral Tribunal under Section 16 of the Act, 1996 which was rejected by the Arbitral Tribunal on 08.07.2005. Thereafter, the petitioners contested the Arbitration claims made by the respondent on merits and ultimately, the Arbitral Tribunal passed the aforementioned awards in favour of the respondent. The petitioners did not file an application under Section 34 of the Act, 1996 within the stipulated time as prescribed under Section 34 of the Act, 1996. But filed Applications under Section 34 of the Act, 1996 along with the condone delay applications for the delay of 497 days in filing the said applications under Section 34. The learned Principal District Judge, Vellore allowed the condone delay applications filed by the petitioners seeking to condone the delay of 497 days in filing the applications under Section 34 of the Act, 1996 on 01.09.2014 in I.A.No.162 of 2013 in O.P.SR. of 2013 and in I.A.No.163 of 2013 in O.P.SR. of 2013. After the delay was condoned, the O. Ps filed under Section 34 of the Act, 1996 were numbered as O.P.No.1 of 2014 and O.P.No.2 of 2014.
5. Aggrieved by the order dated 01.09.2014 allowing the condone delay applications, the respondent preferred revisions under Article 227 of the Constitution of India before this Court in CRP.Nos.36 and 37 of 2015. This Court by its order dated 19.02.2016 allowed CRP.Nos.36 and 37 of 2015 and consequently O.P.Nos.1 and 2 of 2014 on the file of the learned Principal District Judge, Vellore stood dismissed. The petitioners have also not preferred any appeal under Section 37 of the Act, 1996 against the dismissal of Section 34 Applications filed to challenge the Arbitral Awards. Hence, the Arbitral Awards have now become final insofar as the provisions of the Act, 1996 are concerned.
6. The respondent filed execution petitions to execute the Arbitral Awards in terms of Section 36(1) of the Act, 1996. E.P.No.27 of 2011 was filed to execute the Arbitral Award dated 26.06.2009 passed in POCMC.No.2 of 2009 and E.P.No.28 of 2011 was filed to execute the Arbitral Award dated 26.06.2009 passed in POCMC.No.4 of 2009. In both the execution petitions, the respondent sought for attachment of properties owned by the petitioners. By separate orders dated 05.03.2013, in each of the execution petitions, the learned IInd Additional District and Sessions Court, Fast Track Court, Ranipet, Vellore District passed the ex parte orders of attachment of petition schedule properties as there was no repre