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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice M.NIRMAL KUMAR
M.Kumar – Appellant
Versus
Margadarsi Chits Private Limited – Respondent
ORDER :
1. Since the issue involved in both the Civil Revision Petitions is one and the same, they are disposed of by this common order.
2. The petitioner / Judgment Debtor 2, has filed a Petition in E.A.No.3 of 2022 under Order 21, Rule 26(1) of CPC., to stay all further proceedings in E.P.No.2720 of 2021, pending adjudication on the file of the City Civil Court at Chennai, until disposal of the Suit in O.S.No.7906/2021 pending on the file of the VI Assistant City Civil Court at Chennai.
3. The petitioner / Judgment Debtor 2, has filed a Petition under Section 47 of CPC, to dismiss the E.P.No.2720/2021 as the award sought to be executed is nullity and in-executable, as it was obtained by playing fraud and without jurisdiction.
4. Mr.S.Devaraj, the learned counsel appearing for the petitioner / Judgment Debtor 2 would submit that the respondent Chit Fund Company filed a Petition in E.P.No.2720 of 2021, based on the ex-parte Award, dated 17.06.2013, passed by the Arbitrator of Chits in ARC.No.682/2012. The respondent Chit Fund Company has sought for attachment and sale of petitioner's family's dwelling house property. The petitioner instituted a Suit in O.S.No.7906/2021, for declarati
An arbitral award obtained through fraud is deemed a nullity, and allegations must be substantiated for execution proceedings to be hindered.
Once an award is found to be enforceable under Section 49, it is deemed to be a decree from the date of the foreign award. Only broader principles of CPC apply to Part II of the Act.
An arbitral award remains executable unless challenged under Section 34 of the Arbitration and Conciliation Act, 1996, even if the arbitrator was unilaterally appointed.
Parties challenging an arbitral award must do so exclusively under Section 34 of the Arbitration Act; raising new grounds or objections in execution proceedings is impermissible.
The execution of arbitral awards must adhere to procedural requirements, ensuring proper notice and compliance with legal standards.
The executing Court cannot disregard an arbitral award as a nullity unless it has been properly challenged under the Arbitration Act, as failure to do so renders the award final and binding.
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