IN THE HIGH COURT OF MADHYA PRADESH
Sushrut Arvind Dharmadhikari and Hirdesh, JJ.
MP Entertainment and Developers Pvt. Ltd. v. Carnival Films Entertainment Pvt. Ltd.Arbitration Appeal No. 16 of 2023 (Indore): against the order dated 19.1.2023 passed by the Commercial Court, Indore in Case No. MJC-AV No. 98/2022; Decided on 6.7.2023
Arbitration and Conciliation Act, 1996 -- Ss. 9 and 17 -- interim relief -- jurisdiction of Court -- respondent did not have any efficacious remedy before constitution of arbitral tribunal -- rightly approached trial Court for interim relief u/s. 9 -- trial Court rightly exercised jurisdiction u/s. 9 because neither arbitral tribunal proceedings were initiated nor arbitrator was appointed or approached to settle dispute -- sole arbitrator appointed and arbitral tribunal constituted after trial Court had applied its mind and entertained application. (2022) 1 SCC 712 followed. [Paras 12 to 15]
ekè;LFke~ v©j lqyg vfèkfu;e] 1996 & èkkjk 9 rFkk 17 & varfje vuqr¨"k & U;k;ky; dh vfèkdkfjrk & ekè;LFke~ vfèkdj.k d¢ xBu d¢ iwoZ çR;FkÊ d¢ ikl d¨Ã çÒkoh mipkj ugha Fkk & èkkjk 9 d¢ vèkhu varfje vuqr¨"k d¢ fy, fopkj.k U;k;ky; d¢ le{k Bhd gh x;k & fopkj.k U;k;ky; us èkkjk 9 d¢ vèkhu vfèkdkfjrk Bhd gh ç;qDr dh D;¨afd u r¨ ekè;LFke~ vfèkdj.k dh dk;Zokgh vkjaÒ gqà Fkh v©j u eè;LFke fu;qDr fd;k x;k Fkk ;k fookn fuiVkus d¢ fy, mld¢ le{k d¨Ã x;k Fkk & fopkj.k U;k;ky; }kjk eu¨fu;¨x dj vkosnu xzg.k fd, tkus d¢ i'pkr~ ,dek= eè;LFk fu;qDr fd;k x;k rFkk ekè;LFke~ vfèkdj.k xfBr gqvkA ¼2022½ 1 ,l lh lh 712 vuqlfjrA ¼iSjk 12 ls 15½
ORDER
1. The instant appeal under section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter shall be referred as 'Act') has been preferred by the appellant being aggrieved by the impugned order dated 19.1.2023 passed by the learned Commercial Court, Indore in Case No. MJC AV No. 98/2022, whereby the application of respondent filed under section 9 of the Act was partially allowed and the appellant was restrained from alienating rights in respect of Cinema/multiplex (disputed premises), pending the commencement of and during the arbitration proceeding and making of the final award therein and enforcement thereof.
2. The facts in nutshell are, that the respondent is involved in the operation and management of multiplexes under the brand name “Kulraj Broadway Cinemas” whereas the appellant is a company involved in the business of Real Estate Development and is the owner of Cineplex in Malhar Mall at Indore. The appellant (in capacity of the lessor) and the Company HDIL Entertainment Pvt. Ltd ( in capacity of the lessee) had entered into an agreement dated 28.7.2011 for leasing out the premises situated at 2nd 3rd and 4th Floor at Malhar Mall, Indore.
3. That in year 2020, some disagreements between the parties led to the disputes between them, which led to the commencement of multiple litigation between the parties. On 9.11.2022, appellant along with the personal guards entered in the leased out premises of the respondent and illegally locked the premises and refused the access of the cinema for the representative of the respondent. Against the said act, the respondent had filed a criminal complaint for illegally trespassing the property and obstructing the access in cinema hall. Due to the said act the respondent on 3.12.2022 sent a letter to the appellant for appointing arbitrator to settle their dispute. The appellant in his reply dated 19.12.2022 has stated that as per possession document dated 9.05.2022, it is settled that all disputes between both the parties shall be resolved by sole arbitrator Mr. (Arpit Oswal) and by the same reply the respondent also corresponded with the arbitrator to resolve their dispute. The sole arbitrator upon the appellant's reply dated 19.12.2022 issued notice dated 28.12.2022 informing the respondent that on the basis of possession document dated 9.5.2022, the arbitral proceedings shall commence w.e.f. 3.1.2023. However, the respondent disputed the appointment of arbitrator by challenging such proceedings before this Court.
4. Being aggrieved by the appellant's act of 9.11.2022 (trespassing in property) the respondent filed an application under section 9 of the Act before the learned trial Court to remove the obstruction to the access of the appellant in the cinema hall and to pass an order of mandatory injunction for restraining the appellant and/or its agents from interfering with the respondent's sole and exclusive possession, occupation and usage of the multiplexes, to allow the operation and management of the multiplexes, restrain the appellant from alienating rights in respect of cinema/multiplexes and other reliefs. The learned trial Court by impugned order dated 19.1.2022 partially allowed the respondent's application and has restrained the appellant from alienating rights in respect of cinema/multiplexes, pending the commencement of and during the arbitration proceedings and making of the final award therein and enforcement thereof, rest of the reliefs were declined. Being aggrieved by the impugned order the appellant has filed the present appeal before this Court.
5. Learned counsel for the appellant submits that both the parties had invoked the arbitration clause of the said agreement and in onsequence of the said proceedings, the Arbitrator Mr. Arpit Oswal had duly been appointed before whom both the parties were present and have initiated legal proceedings to carve out the differences between them. It is indisputed that arbitration proceedings has already been going on and
Once an Arbitral Tribunal is constituted, Section 9 of the Arbitration Act prohibits further applications for interim relief unless the party shows that the remedy under Section 17 is ineffective.
The court may exercise jurisdiction under Section 9 of the Arbitration and Conciliation Act if the remedy under Section 17 is found to be inefficacious, particularly regarding third parties not party....
The court established that while Section 9 allows for court intervention in arbitration matters, it can only do so if the remedy under Section 17 is found to be ineffective, particularly when third p....
Point of law: When a suit or proceeding is not thrown out in limine but the Court receives it for consideration and disposal according to law, it must be regarded as entertaining the suit or proceedi....
Interim injunction – Jurisdiction under Section 9 of Arbitration and Conciliation Act, 1996, is not an adjudicatory substitute for final determination of rights, but a supportive mechanism to facilit....
Sub-section (3) of Section 9 provides for restriction of exercise of powers by the Court and it has to decide whether the remedy provided under section 17 is efficacious or not.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.