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2026 Supreme(Online)(P&H) 77942

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Jasgurpreet Singh Puri, J
Punjab State Civil Supplies Corporation Limited – Appellant
Versus
Ganesh Rice Mills – Respondent
CR-5847-2025|CR-8920-2025|CR-8878-2025|CR-9445-2025|CR-8589-2025|CR-6164-2025|CR-7999-2025



Advocates:
For the Appellants/Petitioners: R. S. Kalra, Mona Yadav, A. P. S. Mann, Anil Sharma, Sharad Aggarwal, Manbir Singh Batth, H. S. Randhawa
For the Respondents: Vikas Mohan Gupta, Hardik Ahluwalia, Angrej Singh, Puneet Kumar Bansal, Mukand Gupta, Abhishek Batta, Naresh Markanda, Rohan Markanda

The 2015 Amendment to the Arbitration and Conciliation Act is prospective. Section 12(5) regarding arbitrator ineligibility does not apply to arbitral proceedings commenced prior to 23.10.2015, and an executing court cannot retrospectively apply these amendments to invalidate an existing arbitral award.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 12(5), 21, 26, 34, 36 - Arbitration and Conciliation (Amendment) Act, 2015 - Applicability of amendments - Ineligibility under Seventh Schedule - Statutory interpretation - The 2015 Amendment Act is prospective in nature and applies to arbitral proceedings commenced on or after 23.10.2015 - Execution proceedings concerning awards arising from arbitral proceedings commenced prior to the 2015 Amendment are not governed by amended Section 12(5) - Proviso to Section 12(5) allows waiver of ineligibility only by express written agreement after dispute arises. (Paras 6, 20, 24, 35)

(B) Execution of Arbitral Award - Scope of Executing Court - Executing Court cannot go behind the award - Amendment Act of 2015 cannot be applied retrospectively to invalidate awards in cases where arbitral proceedings were already pending or concluded under the unamended Act. (Paras 32, 35)

Facts of the case:
Multiple civil revision petitions were filed challenging orders of the Executing Court which dismissed execution applications of arbitral awards on the ground that the sole arbitrators were ineligible under Section 12(5) of the amended Act. The arbitral proceedings in all these cases had commenced prior to 23.10.2015.

Findings of Court:
The court held that the 2015 Amendment Act is prospective and applies only to arbitral proceedings commenced on or after its enforcement. Executing courts cannot invoke the neutrality provisions of the 2015 amendment to invalidate awards rendered in proceedings initiated under the unamended regime.

Issues: Whether the execution of an arbitral award is barred if the arbitrator is found to be ineligible under Section 12(5) of the amended Act, specifically where the arbitration was initiated prior to the 2015 amendment.

Ratio Decidendi: The 2015 Amendment Act, specifically Section 12(5) read with the Seventh Schedule, cannot be applied retrospectively to arbitral proceedings commenced before the amendment's effective date as per Section 26. Therefore, an executing court is constrained to execute the award as it stands, and the ineligibility criteria under the amendment do not render such awards unenforceable.

Result: Civil Revision Petitions allowed; impugned orders set aside and matters remitted to the Executing Court for further process in accordance with law.

Table of Content
1. factual context confirms arbitration proceedings commenced prior to the 2015 amendment act. (Para 3 , 4 , 5 , 37 , 38)
2. prospective application of section 12(5) and the 2015 amendment to arbitral proceedings. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 15 , 16 , 17)
3. execution courts cannot apply the 2015 amendment act retrospectively to pre-existing arbitral awards. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36)
4. revision petitions allowed; execution proceedings must proceed per pre-amendment legal standards. (Para 39)

JASGURPREET SINGH PURI, J.

1. By this common judgment, a bunch of seven Civil Revision Petitions bearing Nos.CR-5847-2025, CR-8920-2025, CR-8878-2025, CR-9445-2025, CR-8589-2025, CR-7999-2025 and CR-6164-2025 is being decided. In all the aforesaid revision petitions, an important question of law has arisen because of which the same are being taken up together for adjudication. For the sake of convenience and brevity, the facts are being taken from CR-5847-2025.

2. For the purpose of methodical elucidation and structure, this judgment is arranged under the following heads:-

A. FACTUAL MATRIX
B. LEGAL ISSUE
C. ARGUMENTS ADVANCED BY LEARNED COUNSELS FOR THE PETITIONERS
D. ARGUMENTS ADVANCED BY LEARNED COUNSELS FOR THE RESPONDENTS
E. SUBMISSIONS BY LEARNED AMICUS CURIAE
F. ANALYSIS
G. CONCLUSION

A. FACTUAL MATRIX

3. The present is a Revision Petition under Article 227 of the Constitution of India for setting aside of the order dated 08.07.2025 (Annexure P-1) passed in EXE-173 of 2020, whereby the Learned Executing Court has dismissed the execution application of the petitioners by holding the award passed under Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the Arbitration Act”) to be unenforceable with a further prayer for restoration/remanding the execution application with a direction to the learned Executing Court to get the award executed on merits.

4. The petitioners herein entered into an agreement dated 23.10.2006 with the Respondent No.1-Miller for milling of the paddy vide Annexure P-2. Thereafter, when a dispute arose between the parties, an Arbitrator was appointed dated, who passed an award dated 17.07.2012 vide Annexure P-3 in favor of the petitioner to which the respondents filed their objections under Section 34 of the Arbitration Act which were dismissed vide order dated 27.02.2019 (Annexure P-4).

5. The petitioners thereafter preferred an execution application before the learned Executing Court seeking execution of the aforesaid award which was dismissed vide impugned order dated 08.07.2025 (Annexure P-1) being unenforceable on the ground that the award was inexecutable due to being in conflict with Section 12(5) of the Arbitration Act.

B. LEGAL ISSUE

6. In the present bunch of seven Revision Petitions, a common issue of law has arisen, whereby the learned Executing Court has dismissed the execution applications of the petitioner(s) on the ground of un-enforceability. Accordingly, the legal issue that falls for consideration before this Court is as follows:

“Whether execution of award in cases where arbitral proceedings were initiated prior to the amendment of the Arbitration and Conciliation Act, 1996, which came into effect on 23.10.2015 is enforceable or not on the ground of being in conflict with Section 12(5) of the Arbitration Act ?”

C. ARGUMENTS ADVANCED BY LEARNED COUNSELS FOR THE PETITIONERS

7. Learned counsels for the petitioners submitted that a short controversy involved in all the petitions is that the learned Executing Court has dismissed the execution application preferred by the decree holders on the ground that the award passed by the Sole Arbitrator is unenforceable due to being in conflict with Section 12(5) of the Arbitration Act and because of this reason, the execution application stood dismissed being unenforceable. They further submitted that

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