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2026 Supreme(Online)(AP) 25036

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
D Ramesh, Balaji Medamalli, JJ
M/s. Danieli India Limited – Appellant
Versus
Rashtriya Ispat Nigam Limited – Respondent
COMMERCIAL COURT APPEAL NO: 8/2020



Advocates:
For the Appellants/Petitioners: S Ram Babu
For the Respondents: T S Rayalu, V Subrahmanyam

An appeal against an interim order under the Arbitration and Conciliation Act becomes infructuous and may be withdrawn if the underlying arbitral proceedings have already been concluded.

Headnote:The appellant filed a Commercial Court Appeal under Section 37 read with Section 9 of the Arbitration and Conciliation Act, 1996, challenging an order dated 06.01.2020. The appellant sought to restrain the respondent from making deductions towards welfare cess under the BOCW Act and Welfare Cess Act pending arbitration. The court noted that the parties have since initiated and concluded the regular arbitral proceedings. The primary issue was whether the appeal against the interim order remained maintainable. The court observed that since the main arbitration proceedings have already been concluded, the cause for the present appeal no longer survives for adjudication, rendering the appeal infructuous. Accordingly, the Commercial Court Appeal is dismissed as withdrawn.

Table of Content
1. appeal becomes infructuous upon conclusion of main arbitral proceedings. (Para 1 , 2)
2. court grants permission to withdraw an infructuous appeal. (Para 3 , 4)

pleased to-

(i) set aside the impugned order dated 06.01.2020 in C.A.OP.No.26 of 201 on the file of Hon'ble Special Judge for Trial and Disposal of Commercia Disputes, Visakhapatnam by allowing the present Appeal and pass such other and further order as this Hon'ble Tribunal may deem fit just and proper in the interest of justice.

(ii)pass orders and/or directions under Section 37 read with Section 9 of .the Arbitration and Conciliation Act, 1996 restraining the RespOndent s servants, agents and employees from making any further deductions and thereafter withholding such amounts, deducted from the invoices and amounts payable to the Appellant, towards welfare cess under the BOCW Act and Welfare Cess Act, in any manner whatsoever in respect of the Agreement pending conclusion of the arbitration proceedings

(iii)pass orders and/or directions under Section 37 read with Section 9 of the Arbitration and Conciliation Act, 1996 restraining the Respondent, its servants, agents and employees from depositing the amounts deducted and/or withheld from the invoices of the Appellant, towards welfare cess under the BOCW Act and Welfare Cess Act, with the cess collector/Competent Authority pending conclusion of the arbitration proceedings

(iv)pass

IA NO: 1 OF 2020

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to Condone the delay of (117) days in filing Appeal, as per the original limitation period provided under the relevant statutes and pass

Counsel for the Appellant:

1. S RAM BABU

Counsel for the Respondent:

1. T S RAYALU

The Court made the following:

JUDGMENT:

(as per Hon’ble Sri Justice D. Ramesh)

Heard Sri S. Ram Babu, learned counsel for the appellant, and Sri V. Subrahmanyam, learned counsel representing Sri T.S. Rayulu, learned counsel for the respondent.

2. On instructions, the learned counsel for the appellant submitted that the present Commercial Court Appeal has been filed against the order rejecting an application filed under Section 37 read with Section 9 of the Arbitration and Conciliation Act, 1996. He further submitted that, subsequently, the parties initiated regular arbitral proceedings, which have since been concluded. Therefore, the cause in the present Commercial Court Appeal no longer survives for adjudication, and the appeal has become infructuous. He accordingly sought permission to withdraw the Commercial Court Appeal.

3. Permission is accorded.

4. Accordingly, the Commercial Court Appeal is dismissed as withdrawn. There shall be no order as to costs.

Consequently, miscellaneous petitions, if any, pending in this Commercial Court Appeal shall stand closed.

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