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2012 Supreme(P&H) 1331

IN THE HIGH COURT OF PUNJAB AND HARYANA
[DIVISION BENCH]
Before
The Hon’ble Mr. Justice Hemant Gupta
The Hon’ble Mr. Justice Rajiv Narain Raina
CR No. 4216 of 2011
M/s Punjab State Industrial Development Corporation Ltd.
v.
Mr. Sunil K. Kansal
{Decided on 11/10/2012}

Advocates:
For the Petitioner:Mr. B.S. Walia, Advocate.
For the Respondent:Mr. Mukand Gupta, Advocate.
For the As Amicus Curiae:Mr. Arun Palli, Sr. Advocate with Mr. Tushar Sharma, Advocate.
Mr. H.S. Hooda, Advocate General, Haryana with Mr. S.S. Patter, Sr. DAG, Haryana.
Mr. H.S. Sidhu, Addl. A.G., Punjab
For the U.T., Chandigarh:Mr. Sanjay Kaushal, Advocate.

Arbitration Award--Objection--Framing of Issues under O.14, R.1 CPC as in regular suit, are not required to be mandatory framed by the Court.
Arbitration Award--Objection--Court is not bound to grant opportunities to parties to lead evidence as in regular civil suit.

Headnote:(A) Civil Procedure Code, 1908, O.14, R.1--Award--Objection--Framing of Issues under O.14, R.1 CPC as in regular suit, are not required to be mandatory framed by the Court--However, it is open to the Court of frame question which may arise for adjudication--Arbitration & Conciliation Act, 1996, S.34. (Para 30)

       (B) Civil Procedure Code, 1908, O.14, R.1--Award--Objection--Court is not bound to grant opportunities to parties to lead evidence as in regular civil suit--Jurisdiction of Court being more akin that of appellate jurisdiction--Arbitration & Conciliation Act, 1996, S.34. (Para 30)

       (C) Civil Procedure Code, 1908, O.14, R.1--Award--Objection--Proceedings before the Court under Section 34 of the Act are summary in nature--Even if some questions of fact or mixed questions of law and/or facts are to be decided, the court while permitting the parties to furnish affidavits in evidence, can summon the witness for cross-examination, if desired by the other party--Such procedure is keeping in view the principles of natural justice, fair play and equity--Arbitration & Conciliation Act, 1996, S.34. (Para 30)

       (D) Arbitration & Conciliation Act, 1996, S.19 & 23--Procedure--An Arbitral Tribunal is not bound by the Code in terms of Section 19 of the Act and that the parties are free to agree on the procedure to be followed by the Arbitral Tribunal in conducting proceedings before it--In the absence of the agreed procedure, the proceedings before the Arbitral Tribunal are to be governed in terms of the provisions of the Act as Section 23 of the Act deals with the filing of the statement and claim of the defence including the amendment or supplementing the claim or defence.

       (E) Arbitration & Conciliation Act, 1996, S.34--Award--Objections--Issues not to be framed as in regular suit--The proceedings under Section 34 differ from regular civil suit in a significant aspect--In proceedings under Section 34 of the Act, the Court can examine as to whether the Award is liable to be set aside on the grounds mentioned in Section 34(b) of the Act. (Para 27)

       

JUDGMENT

Mr. Hemant Gupta, J.: - Challenge in the present revision is to an order passed by learned Additional District Judge on 14.3.2011 (Annexure P-2), whereby in an application filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short the ‘Act’), the learned Court has framed the issues and fixed the case for evidence of the objector relying upon the judgment of learned Single judge of this court reported as Amrik Singh and another v. Vardhan Properties Investment Ltd., 2007 (1) PLR 294.

2. The challenge to the said order is in view of the judgment of Hon’ble Supreme Court reported as Fiza Developers & Inter-Trade P. Ltd. v. AMCI (I) Pvt. Ltd, (2009)17 SCC 796, wherein it has been held that an application under Section 34 of the Act cannot be tried as a regular civil suit and the procedure adopted by the learned Court in framing the issues is not correct. It is argued that calling upon the objector to lead evidence negates the very object of the Act for expeditious conclusion of the disputes with minimal interference by the Courts.

3. When the matter came up for hearing before the learned Single Judge of this Court on 7.5.2012, learned Single Judge expressed reservation with the judgment relied upon by the learned trial Court. In view of the judgment of Hon’ble the Supreme Court in Fiza Developers’ case (supra), the following question was framed for the decision by the Larger Bench: -

“Whether issues as contemplated under Order 14 Rule 1 CPC should be framed in application under Section 34 of the Arbitration and Reconciliation Act, 1996, keeping in view of Punjab, Haryana and Union Territory, Chandigarh Arbitration and Conciliation Rules, 2003.?

4. The matter came up for hearing before this Bench on 17.9.2012. After hearing the arguments at some length, it transpired that all the learned counsel appearing before this Bench are in fact canvassing the proposition that the Principal Civil Court of Original Jurisdiction is not obliged to frame issues. Therefore, to examine the counter view, if any, Mr. Arun Palli, learned Senior Counsel was requested to assist this Court as Amicus Curiae.

5. We have heard the arguments addressed by learned counsel for the parties as well arguments advanced by Advocate General, Haryana, Mr. Sidhu, learned Addl. A.G., Punjab, Mr. Kaushal, learned Advocate for Chandigarh Administration. The learned Amicus Curaie has assisted this Court in commendable manner.

6. On the basis of the arguments advanced, we find that to answer the question of law framed by learned Single Judge, the following aspects need to be taken into consideration: -

1. The extent of applicability of the Code of Civil Procedure and/or Indian Evidence Act to the Arbitral Tribunal and to the Principal Civil Court of Original Jurisdiction;

2. Whether the Punjab, Haryana and Union Territory, Chandigarh Arbitration and Conciliation Rules, 2003 are inconsistent with Section 19 of the Act which contemplates that the provisions of the Code of Civil Procedure shall not be applicable to the proceedings before the Arbitral Tribunal?

7. To examine the contentions raised, certain statutory provisions from the Arbitration and Conciliation Act, 1996; the Code of Civil Procedure,1908 (for short the ‘Code’) and the Indian Evidence Act 1872, need to be extracted: -

“Arbitration and Conciliation Act, 1996

2. (1) In this Part, unless the contest otherwise requires: -

(a) to (d) xx xx xx

(e) “Court” means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subjectmatter of the arbitration if the same had been the subjectmatter of a suit, but does not include any civil court of a grade inferior to such principal Civil Court, or any Court of Small Causes;

xx xx xx

19. Determination of rules of procedure- (1) The arbitral tribunal shall not be bound by the Code of Civil Proced





























































































































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