2024 Supreme(Online)(Mad) 59821
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice M. NIRMAL KUMAR
M/S.HI STYLE INDIA PRIVATE LIMITED – Appellant
Versus
M/S.RAKESH CORPORATION – Respondent
IN THE HIGH COURT OF JUDICATURE AT MADRAS RESERVED ON : 25.04.2024 PRONOUNCED ON : 21.06.2024 CORAM THE HONOURABLE MR.JUSTICE M.NIRMAL KUMAR C.R.P.No.2686 of 2023 and C.M.P.No.16568 of 2023 M/s.Hi-Style India Private Limited, Having Head Office at 28/1, 28/2, South Phase, 6th Street, 3rd Main Road, Ambattur Industrial Estate, Chennai – 600058.
Having store Showroom at 1652G, Second Avenue, Near Blue Star Bus Stop, Anna Nagar – 600040. ... Petitioner Vs.
M/s.Rakesh Corporation Rep. by Manish Mulchand Jain, No.30, Old Hanuman Galli, 1st Cross, 2nd Floor, Mumbai – 400002. ... Respondent PRAYER: Civil Revision Petition filed under Section 115 of the Code of Civil Procedure, to set aside the Fair order and Decreetal Order in E.A.No.1 of 2022 in E.P.No.905 of 2019 in A.R.B.No.6 of 2017-2018 dated
11.04.2023 on the file of the XXV Assistant City Civil Court, Chennai.
For Petitioner : Mr.Avinash Wadhwani MAH assisted by Mr.Barani Bharathi.B For Respondent : Mr.Srenik.S.Jain ORDER The respondent filed execution petition in E.P.No.905 of 2019 in A.R.B.No.6/2017-2018 before the learned XXV Assistant Judge, XXV Assistant City Civil Court, Chennai to execute the award passed in Arbitration Case No.6 of 2017-2018, dated 09.05.2018. Since no representation for the petitioner/judgment debtor and counter not filed, the learned XXV Assistant Judge passed exparte order, dated 15.11.2021. Challenging the same, the petitioner/judgment debtor representing by its Managing Director filed appeal in E.A.No.1 of 2022 in E.P.No.905 of 2019 in A.R.b.No.6/2017-2018 before the same Court and the same was dismissed by judgment and decree, dated 11.04.2023. Aggrieved over the same, the present civil revision petition has been filed.
2.The learned counsel for the petitioner submitted that the respondent/decree holder filed execution petition in E.P.No.905 of 2019 to execute the award passed in A.R.B.No.6/2017-2018, dated 09.05.2018 and sought direction to direct the petitioner/judgment debtor to pay amount of Rs.17,64,195/- failing which the order of attachment and sale of immovables to be ordered. He further submitted that the arbitration award is non-est in law and the Arbitrator passed the award in the absence of any valid arbitration agreement between the parties. The proceedings have been invoked solely based on the few invoices raised by the respondent. These invoices neither have any signature by the petitioner nor by its authorized person representing the Company. It is a settled position of law that arbitration clause present in invoice would not constitute as the existence of the arbitration agreement, hence, the arbitration award becomes non-
executable in eye of law.
3.He further submitted that the petitioner was set exparte by the lower Court on 15.11.2021 for non filing of counter and for no representation. Thereafter, the petitioner filed appeal in E.A.No.1 of 2022 in E.P.No.905 of 2019 in A.R.B.No.6/2017-2018 to set aside the exparte order, dated 15.11.2021. In the meanwhile, the petitioner filed petition to set aside the arbitration award under Section 34 of the Arbitration and Conciliation Act, 1996 before the High Court of Bombay in Arbitration Petition (L) No.1127 of 2018 and presented on 05.10.2018. The Execution Court here dismissed the petitioner’s set aside application on 11.04.2023 on the ground that no appeal or legal stay was pending and the averments in affidavit are false and baseless, not acceptable. The petitioner filed affidavit on the assurance given by the Counsel in Bombay to whom the case was entrusted to set aside the Arbitral award. The Counsel at Bombay informed the petitioner that the case has been filed and it is at the stage of compliance during April 2022. Later, it was informed that the Arbitration Petition (L) No.1127 of 2018 said to be rejected on 05.07.2019. This fact the petitioner came to know only after the respondent’s counsel informed the same in the Execution Court here. Thereafter, the petitioner made enquiry wi