CALCUTTA HIGH COURT
Sahidullah Munshi, J
Srei Equipment and Finance Pvt. Ltd. v. Khyoda Apik and Others
GA No. 20 of 2011|EC No. 142 of 2009|AP No. 381 of 2007
1. This appeal is against a judgment and order dated 20th May, 2011 passed by the Hon'ble single Bench in GA No. 20 of 2011, relating to proceedings for execution of an arbitral award being EC No. 142 of 2009, whereby the learned single Bench declined the prayers of the appellants for examination of the judgment - debtors, by summoning the judgment - debtors to this Court and simply adjourned the execution applications till such time as appropriate applications were made for transfer of the deemed decrees to the appropriate executing fora.
2. In or about November, 2007, the appellant filed a petition in this Court, being AP No. 381 of 2007, under S.9 of the Arbitration and Conciliation Act, 1996 , hereinafter referred to as the 1996 Act. The said application under S.9 was entertained and a Receiver was appointed over the assets being the subject - matter of arbitration. The said application was ultimately disposed of by an Order dated 11th March, 2009. The assets in question remained in the possession of the Receiver. As pointed out by Mr. S.N. Mukherjee, Senior Advocate appearing on behalf of the appellant, it is nobody's case that this Court lacked jurisdiction to entertain or decide the said application.
3. While the application being AP No. 381 of 2007 was pending in this Court, the disputes which had arisen between the parties were referred to arbitration, and an arbitral award was passed in favour of the appellant on 11th March, 2008.
4. S.35 and S.36 of the 1996 Act provide as follows:
'35. Finality of arbitral awards. - Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively.
36. Enforcement. - Where the time for making an application to set aside the arbitral award under S.34 has expired, or such application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure, 1908 (5 of 1908) in the same manner as if it were a decree of the Court.'
5. Some of the relevant provisions of the Civil Procedure Code relating to execution of decrees are set out hereinbelow :
'38. Court by which decree may be executed. - A decree may be executed either by the court which passed it, or by the Court to which it is sent for execution.
39. Transfer of decree. - (1) The Court which passed a decree may, on the application of the decree - holder, send it for execution to another Court [of competent jurisdiction],
(a) if the person against whom the decree is passed actually and voluntarily resides or carries on business, or personally works for gain, within the local limits of the jurisdiction of such other Court, or
b) if such person has no property within the local limits of the jurisdiction of the Court which passed the decree sufficient to satisfy such decree and has property within the local limits of the jurisdiction of such other Court, or
(c) if the decree directs the sale or delivery of immovable property situate outside the local limits of the jurisdiction of the Court which passed it, or
(d) if the Court which passed the decree considers for any other reason, which it shall record in writing, that the decree should be executed by such other Court.
(2) The Court which passed the decree may of its own motion send it for execution to any subordinate Court of competent jurisdiction.
[(3) For the purposes of this section, a Court shall be deemed to be a Court of competent jurisdiction if, at the time of making the application for the transfer of decree to it, such Court would have jurisdiction to try the suit in which such decree was passed.]
[(4) Nothing in this section shall be deemed to authorise the Court which passed a decree to execute such decree against any person or property outside the local limits of its jurisdiction.]
40. Transfer of decree to Court in another State. - Where a decree is sent for execution in another State, it shall be sent to such Court and executed in such manner as may be prescribed by rules in force i
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