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2019 Supreme(P&H) 2007

IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
Nirmaljit Kaur, J.
Rajender Sharma - Appellant
Versus
M/s. Tanmay Developers Pvt. Ltd. - Respondent
Civil Revision No. 4079 of 2019
Decided On : 04-12-2019

Advocates Appeared:
S.K. Garg Narwana, Advocate, Mukesh Rao, Advocate, Japjit Singh Johal, Advocate, Shekhar Verma, Advocate

The main legal point established in the judgment is that an affidavit is not ordinarily required to be filed with an application under Section 34 of the Arbitration and Conciliation Act, 1996, and no notice or hearing is required before allowing a party to file a rejoinder.

Headnote:

Affidavit - Application under Section 34 of the Arbitration and Conciliation Act, 1996 - Section 34 - Summary of Acts and Sections: Section 34 of the Arbitration and Conciliation Act, 1996 - The judgment discusses the necessity of filing an affidavit with an application under Section 34, the provisions of the Commercial Courts Act, 2015, and the interpretation of the requirement for filing an affidavit. The court emphasizes that an affidavit is not ordinarily required to be filed and is only necessary if the party wants to agitate something beyond the record. The judgment also clarifies that no notice or hearing is required before allowing a party to file a rejoinder as it would delay the matter, contrary to the Act's objective of quick disposal.

Fact of the Case:

The respondent filed objections to an Award under Section 34 of the Arbitration and Conciliation Act, 1996. The court directed the parties to furnish proper affidavits in support of the pleadings. The petitioner sought to set aside the orders allowing the filing of rejoinder and directing the furnishing of proper affidavits.

Finding of the Court:

The court found that an affidavit is not ordinarily required to be filed with an application under Section 34, and it is for the party to determine whether they need to file an affidavit. The court also concluded that no notice or hearing is required before allowing a party to file a rejoinder.

Issues: The issues revolved around the necessity of filing an affidavit with an application under Section 34 and the propriety of allowing a party to file a rejoinder without notice or hearing.

Ratio Decidendi: The court held that an affidavit is not ordinarily required to be filed with an application under Section 34 and that no notice or hearing is required before allowing a party to file a rejoinder.

Final Decision: The revision was partly allowed, setting aside the orders requiring the filing of affidavits and clarifying that no notice or hearing is required before allowing a party to file a rejoinder.

JUDGMENT

Nirmaljit Kaur, J. - The present revision is filed for setting aside the order dated 31.10.2018 vide which an application seeking permission to file rejoinder moved on behalf of the petitioner (respondent herein) was allowed as well as the order dated 02.04.2019 and 16.05.2019 passed by the Additional District Judge-cum-Presiding Judge, Special Commercial Court at Gurugram, vide which the parties were directed to furnish proper affidavit in support of the pleadings.

2. An Award dated 12.12.2017 came to be passed for an amount of Rs. 35.13 crores, to be paid by the respondent. The respondent filed objections to the Award by way of an application under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, 'the 1996 Act') on the ground that the Award has been passed in excess and constitutes improper exercise of jurisdiction on the part of the learned sole Arbitrator. The claimant-petitioner filed their reply dated 04.07.2018 to the above application praying for dismissal of the said application. The claimantpetitioner also filed their cross-objections under Order 41 Rule 22 of the Code of Civil Procedure (for short,'CPC'). An application for dismissal of the cross-objections was also filed. The respondent, accordingly, moved an application for granting permission to file rejoinder to the reply filed by the petitioner. Learned Additional District Judge-cum-Presiding Judge, Special Commercial Court, Gurugram allowed the application for filing the rejoinder and vide order dated 02.04.2019 and again on 16.05.2019 directed the parties to furnish proper affidavits in support of the pleadings.

3. While praying for setting aside the orders dated 31.10.2018, 02.04.2019 and 16.05.2019, learned counsel for the petitioner submitted as under:

(a) that the Court cannot direct for furnishing of the affidavits in order to adjudicate the question before it and under no circumstances, the Court can take evidence or affidavit regarding anything in an application under Section 34;

(b) the application under Section 34 of the 1996 Act is not a suit and is only an application. Hence, no affidavit is required;

(c) The proof is required to be furnished by a party only qua what is not available on the record of the Arbitrator and only in exceptional cases;

(d) Reliance was placed on the judgment rendered by the Apex Court in the case of Emkay Global Financial Services Limited vs Girdhar Sondhi, (2018) 9 SCC 49 to support his argument;

(e) No order for filing rejoinder could have been passed and that too without giving any opportunity to the petitioner to file reply to the application seeking the filing of rejoinder as the application under Section 34 of the 1996 Act is not a suit and no trial can be held.

(f) The rejoinder/replication can be permitted to be filed only in a civil suit under Order 8 Rule 9 of CPC and Order 8 Rule 9 of CPC and CPC was not applicable to the proceedings held under Section 34 of the 1996 Act.

(g) The object behind doing away with the filing of the affidavit was to reduce the delay in deciding the application under Section 34 of the 1996 Act to a minimum.

4. Learned counsel for the respondent, on the other hand, while referring to the provisions of the Commercial Courts Act, 2015 (for short, 'the 2015 Act') submitted that in Order VI, after Rule 3, Rule 3-A has been inserted, which provides for pleadings in a particular form and after Rule 15, Rule 15-A has been inserted, which requires the pleadings in the commercial dispute to be verified by an affidavit in the manner prescribed in the schedule. A perusal of the said declaration in the form of affidavit in 'Appendix I', as per the first Schedule, Order VI, Rule 15-A and Order XI, Rule 3 shows that it is simply to verify the pleadings and nothing more. The same does not amount to any evidence or leading of any evidence. Secondly, since the very matter is pending before the Commercial Court, the matter has to be proceeded as per the provisions of the 2015

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