MADRAS HIGH COURT
GOPURAM ENTERPRISES LTD – Appellant
Versus
M/S INTEGRATED FINANCE COMPANY LIMITED – Respondent
A 3170/2022
1
Appln.No. 3170 of 2022
IN
EP DR.No. 45983 of 2020
C.V.KARTHIKEYAN, J.
This application has been filed seeking interference of an order of the
learned Master dated 22.04.2022 in EP DR.No. 45983 of 2020. The order
was passed in A.No. 2457 of 2021. The respondent in the unnumbered
execution petitoin is the petitioner herein. The Decree holder had necessity to
file EP DR.No. 45983 of 2020 to put into effect an award of the arbitrator
dated 04.02.2008.
2. In the unnumbered Execution Petition, the Decree holder had filed
an application under Order 21 Rule 41 of the Code of Civil Procedure seeking
a direction to the Judgment Debtor to declare his assets to enable
enforcement of the arbitration award.
3. Before examining the facts of the case, a few dates are required to
be pointed out. The award was dated 04.02.2008. The Execution Petition
was filed in July 2020. In the meanwhile, the applicant herein, who was the
Judgment Debtor, and had suffered an adverse order in the award, filed
O.P.No. 476 of 2008.
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4. It is contended by Mr.V.P.Raman learned counsel, for the
respondent herein / petitioner in the execution petition that with the filing of
petition under Section 34 of the Arbitration and Conciliation Act 1996, an
automatic stay enures to the applicant, who files such petition. That Original
Petition No. 476 of 2008 meandered around and finally was dismissed on
07.12.2017. Challenging that order of the learned Single Judge, an Original
Side Appeal was filed and that was also dismissed to the adverse interest of
the petitioner herein by a Judgment dated 13.03.2019. It is therefore
contended by Mr. V.P.Raman that only after 13.03.2019 did the decree
holder get a firm hold over the award to exercise right was to put it to
enforcement. Accordingly, the Execution Petition was filed on 20.07.2020.
5. The main objection raised in this Application and which objections
had actually been also advanced before the learned Master was, in my opinion
a shightly misguided interpretation of Sections 34 and 36 of the Arbitration
and Conciliation Act 1996. It had been stated that in the year 2015, there
was an amendment brought about to the said provisions and it is contended
that the said amendment would have retrospective effect. It is therefore
contended that even though the award was of the year 2008, the amendment
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of the year 2015 would ennure to the award and owing to such amendment in
the year 2015, an Execution Petition filed in the year 2020 automatically
stood barred.
6. To support this contention, the learned counsel for the applicant
relied on a Judgment of the Hon'ble Supreme Court reported in (2018) 6 SCC
287 [ Board of Control for Cricket in India Vs. Kochi Cricket Private
Limited and Others]. Specific referrence was drawn to paragraph Nos. 67
wherein the effect of the amendment and its retrospective nature was
discussed and it was held as follows:-
“67.
In 2004, this Court’s Judgment in
National Aluminium Company Ltd. V. Pressteel
& Fabrications (P) Ltd., (2004) 1 SCC 540 had
recommended that Section 36 be substituted, as
it defeats the very objective of the alternative
dispute resolution system, and that the Section
should be amended at the earliest to bring
about the required change in law. It would be
clear that looking at the practical aspect and the
nature of rights presently involved, and the
sheer unfairness of the unamended provision,
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which granted an automatic stay to execution of
an award before the enforcement process of
Section 34 was over (and which stay could last
for a number of years) without having to look at
the facts of each case, it is clear that Section 36
as amended should apply to Section 34
applications filed before the commencement of
the Amendment
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