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2022 Supreme(Tri) 87

HIGH COURT OF TRIPURA AGARTALA
S.G. Chattopadhyay, J.
State of Tripura - Appellant
Versus
Ashes Deb - Respondent
CRP No. 85 & 86 of 2022 , CRP No. 86 & 86 of 2022
Decided On : 21-12-2022

Advocates appeared:
D. Bhattacharya, Advocate, K. De, Advocate, Somik Deb, Advocate, S. Majumder, Advocate

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.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 36 - Enforcement of arbitral award - State's objections under Section 47 CPC rejected by Commercial Court as inconsistent with the Arbitration Act - Only challenge permissible against arbitral award under Section 34 of the Arbitration Act - Petitioners failed to challenge award under Section 34 within prescribed time. (Paras 1, 4, 13)

(B) Arbitral awards - Nature and finality - Specific grounds for challenging arbitral awards are provided under Section 34 - Provisions of CPC applicable only if not inconsistent with Arbitration Act. (Paras 1, 12)

Facts of the case:
Civil revision petitions against a common order directing payment under two arbitral awards. The respondent was awarded substantial amounts which the State challenged under Section 47 CPC after failing to act within the time limits set by Section 34 of the Arbitration Act.

Findings of Court:
The objection under Section 47 CPC is not valid in enforcing arbitral awards, only mitigation actions permissible are those under Section 34 of the Arbitration Act.

Issues: The validity of enforcement of arbitral awards versus objections raised under CPC provisions.

Ratio Decidendi: The court affirmed that applying CPC provisions against the enforcement of an arbitral award would undermine the integrity of the Arbitration Act, reiterating that such awards are binding once no timely challenge is raised.

Result: Revision petitions rejected.

JUDGMENT

S.G.CHATTOPADHYAY ,J. - These civil revision petitions are directed against the common order dtd. 20/8/2022 passed by the District Commercial Court, West Tripura, Agartala in case No. Ex (M) 29 of 2021 and Ex (M) 30 of 2021.

2. The factual context of the case is as under:

In the arbitral proceeding No. 09(SCD) of 2019 in respect of a dispute between Shri Ashes Deb, contractor (petitioner) and the Executive Engineer, Longthorai Division, Public Works Department (R and B) (O.P.) arising out of work order No. F.8(8)/EE/LTV/D/ 3028-39dated 11/12/2019, Shri Justice S.C. Das, former Judge of the High Court of Tripura was appointed as the sole arbitrator in which the following arbitral award was passed on 29/1/2021:

"In view of the discussion made above, the petitioner is entitled to get Rs.29,33,141.00 + Rs.60,93,104.00 + Rs.4,70,000.00+ Rs.2,00,000,.00 total Rs.96,96, 245.00 out of which, an amount of Rs.5,81,500.00, as decided under Issue No. 7, shall be set off and the amount therefore stands at Rs.96,96,245.00 (-) Rs.5,81,500.00 = Rs.91,14,745.00 and on this amount, the petitioner is entitled to get interest @ 9% per annum from 4/12/2018.

The payment of awarded amount of Rs.91,14,745.00 with 9% interest should be made within 90 days from the date of award along with cost part as awarded under Issue No.6, i.e. Rs.1,91,743.00. In case of failure to make payment within 90 days, entire amount shall carry interest @12% per annum from 4/12/2018."

3. Shri Ashes Deb, being the award holder under the said arbitral award approached the Commercial Court seeking enforcement of the award in terms of Sec. 36 of the Arbitration and Conciliation Act, 1996 ("the Arbitration Act" for short). His application was registered as Ex (M) 30 of 2021. The State-respondent against whom the arbitral award was passed raised objection by filing application under Sec. 47 CPC which was rejected by the Commercial Court by the impugned order and the State-respondent was directed to pay the whole amount of award to the award holder petitioner.

4. Similarly, in the other arbitral proceeding No. 10 (SCD) of 2019 in respect of a dispute between the same parties arising out of work order No. F.8(8) (Pt-II)/EE/LTV/D/3056-66 dtd. 5/8/2013, Shri Justice S.C. Das, former Judge of the High Court of Tripura was appointed as the sole arbitrator who passed the following arbitral award on 29/1/2021:

"In view of the issue wise discussion and decision made above, the petitioner is entitled to get Rs.46,19,899.00 + Rs.2,20,000.00 + Rs.2,37,995.00, total Rs.50,77,894.00 out of which, an amount of Rs.12,48,502.00, as decided under Issue No.6, shall be set off and the amount, therefore, stands at Rs.38,29,392.00 and on this amount, the petitioner is entitled to get interest @ 9% per annum from 4/12/2018.

The payment of awarded amount of Rs.38,29,392.00 should be made within 90 days from the date of award along with cost part as awar-ded under Issue No.5, i.e. Rs.1,81,722.00. In case of failure to make payment within 90 days, entire amount shall carry interest @12% per annum from 4/12/2018."

5. The award holder filed similar application under Sec. 36 of the Arbitration and Conciliation Act, 1996 before the Commercial Court seeking enforcement of the said arbitral award and the said application was registered as case No. Ex (M) 29 of 2021. The State-respondent filed petition under Sec. 47 CPC raising objection against the enforcement of the arbitral award which was rejected by the Commercial Court by the common impugned order dtd. 20/8/2022.

6. Aggrieved by and dissatisfied with the said order dtd. 20/8/2022 passed by the District Commercial Court, West Tripura, Agartala, the State has preferred the said civil revision petitions for quashing the impugned order.

7. Heard Mr. D. Bhattacharya, learned G.A. appearing for the petitioner-State along with Mr. K. De, learned Addl. GA as well as Mr. Somik Deb, learned senior advocate appearing along with Mr. S. Majumder, learned advoc

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