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2019 Supreme(Mad) 2002

IN THE HIGH COURT OF MADRAS
R. Subramanian, J.
Kamarajar Port Limited - Appellants
Vs.
Ennore Tank Terminal Private Limited - Respondent
Application Nos. 2291 and 2292 of 2019 in EP No. 124 of 2018
Decided On : 19-08-2019

Advocates Appeared:
For the Appellant : S. Parthasarathy, SC and Krishna Ravindran
For the Respondents:Vijay Narayanan, Advocate General assisted by K. Gowtham Kumar

Headnote:

Arbitration and Conciliation Act 1996 - Section 36 - principal Act - section 37 - Code of Civil Procedure - challenges the order – jurisdiction – Appeal against conviction - . In support of his contention that the appeals are not maintainable, the learned Advocate General would submit that an appeal against the order of the Master made in an execution proceeding launched under Section 36 of the Arbitration and Conciliation Act 1996, cannot be maintained in view of the provisions of Section 5 read with Section 37(1) of the said Act. Elaborating on his submissions, Mr. Vijay Narayan, learned Advocate General would submit that the Arbitration and Conciliation Act, being a Special enactment and self contained Code an appeal remedy, not otherwise provided for under the Act, cannot be availed of by the parties, more so, when the same is prohibited under the Arbitration and Conciliation Act. He would draw my attention to Section 5 of the Arbitration and Conciliation Act, 1996, which reads as follows – Held, Insofar as the executions in the Original Side of this Court are concerned, the learned Master acts only as a delegate of the Court. Though an appeal is provided under Order 14 Rule 12 of the Original Side Rules, against the order of the learned Master passed in execution, as rightly contended by Mr. S. Parthasarathy, learned Senior Counsel with the aid of the judgment of the Division Bench in Sreyas Sripal v. T.P. Anand, reported in 2007 (3) LW 680, the proceedings are only in the nature of the review of the learned Master and therefore, the bar created under Section 37 of the Arbitration and Conciliation Act would not be attracted - In the light of the above discussions, the inevitable conclusion is that an appeal as provided under Order 14 Rule 12 of the Original Side Rules is available against the order of the learned Master, in execution of an award passed under Part I of the Arbitration and Conciliation Act, in view of the; specific language of Section 36 that the execution of an award passed under Part I would be governed by the Code of Civil Procedure - After the order where reserved Mr. S. Parthasarathy, learned Senior Counsel mentioned the matter on 13.08.2019 in the presence of the learned Advocate General Mr. Vijay Narayan, with a request to take note of the provisions of Section 8 of the Arbitration and Conciliation Amendment Act 2019 (Act 33 of 2019), which reads as follows - Relying upon the introduction of the non obstante clause in Section 37 by the Amending Act, Mr. S. Parthasarathy, learned Senior Counsel would contend that since the appeal in question had been filed prior to the amendment, the provisions of the Code of Civil Procedure would be applicable insofar as the matters relating to execution - Per contra Mr. Vijay Narayan, learned Advocate General would submit that the introduction of the non obstante clause by the Amending Act would not alter the situation. In the light of the view taken by me that proceedings in execution are outside the Arbitration and Conciliation Act and they would be governed by the Code of Civil Procedure, I do not think I should venture upon pronouncing on the effect of the introduction of the non obstante clause by the Amending Act – appeal dismissed

Judgement Key Points
  • The Execution Petition (EP No. 124 of 2018) seeks enforcement of the arbitral award dated 28.09.2017, directing the judgment debtor to approve DRP 2014, allot 330 meters for jetty expansion, 300 sq.m. for truck drivers' resting area, and 3.75 acres for storage within six weeks. [21001342660001][21001342660002]
  • The applicant challenges the Master's order dated 08.02.2019 under Order 14 Rule 12 of Original Side Rules, which overruled objections to execution. [21001342660001]
  • Respondent contests maintainability of the appeal, citing Sections 5 and 37(1) of the Arbitration and Conciliation Act, 1996, arguing the Act is a self-contained code barring appeals not specified therein. [21001342660004] (!) [21001342660005][21001342660006] (!) (!) (!) (!) (!) (!) (!)
  • Section 37 limits appeals to specific orders (e.g., under Sections 8, 9, 34, 16, 17) and states "from no others," with no second appeal under sub-section (3). [21001342660006] (!) (!) (!) (!) (!) (!) (!)
  • Section 50 (for foreign awards) limits appeals and bars second appeals, emphasizing minimal judicial intervention. [21001342660007] (!) (!) (!) (!) (!) (!) (!)
  • Argument for applicant: Award under Section 36 is enforceable as a decree under CPC; execution proceedings terminate arbitration under Section 32 and follow CPC fully, including appeals. [21001342660022] (!) (!) (!) (!) (!) (!) (!) [21001342660024][21001342660032] (!) (!) (!) (!)
  • Master's role in Original Side executions is as Court delegate; Order 14 Rule 12 appeal is review-like, not barred by Section 37. [21001342660025][21001342660049]
  • Section 36 deems award enforceable under CPC "in the same manner as if it were a decree of the court"; execution outside Arbitration Act post-award. [21001342660032] (!) (!) (!) (!) [21001342660034][21001342660042]
  • Difference from Section 49 (foreign awards deemed decree of specific court) noted; local awards executable anywhere under CPC without transfer. [21001342660035] (!) (!) [21001342660039]
  • Section 5 limits judicial intervention to Act's provisions, but execution under CPC invokes CPC remedies (appeals/revisions). [21001342660037][21001342660048]
  • Court holds appeal maintainable under Order 14 Rule 12 as execution governed by CPC per Section 36; Section 37 bar inapplicable to execution orders. [21001342660050]
  • Amendment introducing non-obstante clause in Section 37(1) noted but not ruled upon, as execution pre-dates and falls under CPC. [21001342660051] (!) [21001342660052]
  • Objection to maintainability overruled; appeal proceeds. [21001342660053]

ORDER :

R. Subramanian, J.

1. The applicant in Application No. 2292 of 2019 challenges the order of the learned Master dated 08.02.2019 made in EP No. 124 of 2018, in and by which, the learned Master had directed the respondent/applicant herein to approve DRP 2014, to allot 330 meters expansion of the existing jetty (MLT-1), to allot an area of 300 square meters to setup truck drivers resting area and allot 3.75 acres of land to install additional storage facility to the petitioner within a period of six weeks. The Execution Petition in EP No. 124 of 2018 was laid by the respondent herein seeking execution of the award of the Arbitral Tribunal dated 28.09.2017.

2. The Execution Petition was resisted by the judgment debtor/applicant herein on various grounds. The above order came to be passed in the Execution Petition over ruling the objections of the judgment debtor/applicant herein. Aggrieved, the applicant has come forward with this application seeking to set aside the order of the learned Master under Order 14 Rule 12 of the Original Side Rules.

3. When the above applications were taken up for hearing Mr. Vijay Narayan, learned Advocate General appearing for the respondent/decree holder raised the question of maintainability of the Appeal. Considering the nature of the proceedings, Counsels were required to address arguments on the maintainability of the Appeal under Order 14 Rule 12 of the Original Side Rules.

4. I have heard Mr. S. Parthasarathy, learned Senior Counsel assisted by Mr. Krishna Ravindran, for the applicant and Mr. Vijay Narayan, learned Advocate General assisted by M/s. K. Gowtham Kumar, appearing for the respondent.

5. In support of his contention that the appeals are not maintainable, the learned Advocate General would submit that an appeal against the order of the Master made in an execution proceeding launched under Section 36 of the Arbitration and Conciliation Act 1996, cannot be maintained in view of the provisions of Section 5 read with Section 37(1) of the said Act. Elaborating on his submissions, Mr. Vijay Narayan, learned Advocate General would submit that the Arbitration and Conciliation Act, being a Special enactment and self contained Code an appeal remedy, not otherwise provided for under the Act, cannot be availed of by the parties, more so, when the same is prohibited under the Arbitration and Conciliation Act. He would draw my attention to Section 5 of the Arbitration and Conciliation Act, 1996, which reads as follows:

5. Extent of Judicial Intervention:-Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part.

6. Relying upon the provisions of Section 5, extracted above, the learned Advocate General would submit that the judicial intervention in the process of arbitration is subject to the provisions of the Arbitration and Conciliation Act and no judicial authority can intervene in proceedings under the Arbitration and Conciliation Act, except where there is a provision for such intervention. The learned Advocate General would also point out that Section 8, Section 9, Section 11, Section 17, Section 34 and Section 37 are some of the provisions which provide for intervention by a Judicial Authority in the course of arbitration.

7. He would also draw my attention to the provisions of Section 37 of the Arbitration and Conciliation Act, which provides for appeals against some of the orders passed during the course of the arbitration proceedings or in proceedings challenging the award under Section 34. Section 37 of the Arbitration and Conciliation Act 1996, reads 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 decrees of the Court passing the order, namely:--

(a) refusing to refer the parties to arbitration under section 8;

(b) granting or refusing to gra

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