IN THE HIGH COURT OF ALLAHABAD
Shekhar B. Saraf, J.
State of U.P. and others - Petitioners
Versus
Shri Raj Veer Singh - Respondent
Civil Misc. Writ Petition No. 6346 of 2022
Decided On : 16-04-2024
JUDGMENT :
Shekhar B. Saraf, J.
The instant writ application under Article 227 of the Constitution of India has been filed by the State of Uttar Pradesh (hereinafter referred to as the 'Petitioner No. 1') against the order dated May 17, 2022 passed by the Additional District & Sessions Judge, Bijnor. A further challenge has been laid to the orders dated July 21, 2022 and August 2, 2022 passed by the Commercial Court, Moradabad.
FACTS
2. I have laid down the factual matrix leading to the instant appeal below:
b. Disputes arose between the parties in terms of the aforesaid contract. Accordingly, in term of the Clause 42 and 43 of the contract between the parties, these disputes were referred to arbitration.
c. Shri A.K. Gupta, Sole Arbitrator passed the arbitral award on December 12, 2013. Against the said arbitral award, the Petitioner No. 1 preferred an application under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') before the District Judge, Bijnor. The said application was rejected vide order dated April 9, 2014.
d. The Petitioner No. 1 filed a first appeal before this Court against the order of the District Judge, Bijnor. However, the said first appeal was dismissed by this Court vide order dated December 22, 2016. A Special Leave Petition under Article 136 of the Constitution of India was also preferred by the Petitioner No. 1 before the Hon'ble Supreme Court which was dismissed on the ground of delay vide order dated November 2, 2018. Review petition filed by the Petitioner No. 1 against the order dated November 2, 2018 was dismissed by the Hon'ble Supreme Court on January 15, 2019.
e. Thereafter, an execution application was filed in the year 2019 by the Respondent under Section 36 of the Act. On May 17, 2022, the Additional District and Sessions Judge, Bijnor passed an order in the said execution application directing the State Bank of India, Main Branch Nazeebabad, Bijnor to cease the bank account of Executive Engineer, Madhya Ganga Canal Construction Division - 7 Bijnor and not to permit withdrawal from the said account.
f. Subsequently, the execution application filed by the Respondent was transferred to Commercial Court, Moradabad. The Commercial Court, Moradabad vide its order dated July 21, 2022 directed the Petitioner No. 1 to ensure the payment of the awarded amount alongwith interest on or before August 10, 2022.
g. Petitioner No. 1 preferred an objection in under Section 47 of the Code of Civil Procedure, 1908 (hereinafter referred to as the 'CPC, 1908') in the year 2022 before the Commercial Court, Moradabad which was rejected vide order dated August 2, 2022.
h. Aggrieved by the order dated May 17, 2022 passed by the Additional District and Sessions Judge, Bijnor and the orders dated July 21, 2022, and August 2, 2022 passed by the Commercial Court, Moradabad, the Petitioners have filed the instant writ petition under Article 227 of the Constitution of India before this Court.
CONTENTIONS OF THE PETITIONERS
3. Sri Manish Goyal, learned Additional Advocate General appearing for the petitioners has made the following submissions on behalf of the Petitioners:
ii. The said action of the Respondent of nominating th
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Objections under Section 47 of the CPC are not maintainable against arbitral awards under Section 36 of the Arbitration Act, as arbitral awards are not actual decrees.
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.
Judicial interference in arbitration proceedings under Articles 226 and 227 is limited to exceptional circumstances, emphasizing respect for arbitral awards and the need to minimize court involvement....
1.Arbitral proceedings - Applicability of Act of 1996 – Section 85 (2) (a) of Act of 1996 clear that in case arbitral proceedings is commenced before this Act shall continue in Old Act, 1940 unless o....
The enforcement of arbitral awards must comply with the Arbitration Act, and objections under CPC are inadmissible once the time for challenging the award under Section 34 has expired.
Execution of an arbitral award requires compliance with the 90-day limitation under Section 34; execution petitions filed before this period are impermissible.
Scope to stay execution proceeding by Executing Court is limited – It is only an interim arrangement enabling the party to obtain stay order from appropriate Court, including Appellate Court.
The Arbitral Tribunal has the power to rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement, and for that purpose, a....
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