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2007 Supreme(SC) 944

H.K.SEMA, P.K.BALASUBRAMANYAN
Adhunik Steels Ltd. – Appellant
Versus
Orissa Manganese and Minerals Pvt. Ltd. – Respondent


Counsel for the Parties :
For the Appellant :Dushyant Dave and Shyam Divan Sr. Adv., Ms. Smita Bankoti, Anirudh and Devendra Singh, Advocate.
For the Respondent:C.A. Sundaram and Ranjit Kumar, Sr. Adv., Arvind Kumar, Mrs. Laxmi Arvind, Mahesh Agarwal, Gopal Jain and Mrs. Poonam Prasad, Advocates.

Judgement Key Points

Key Points: - Interim measures under Section 9 are not independent of established injunction principles and must consider balance of convenience, prima facie case, irreparable injury, and just and convenient grounds. (!) (!) (!) - The court may grant orders preserving or protecting subject matter of arbitration, including injunctions or other measures, and such powers are to be exercised with regard to supportive role of courts in arbitration. (!) (!) - Specific Relief Act provisions interact with Section 9 where injunctions are involved; the court cannot ignore applicable relief principles when granting interim protection. (!) (!) - The court’s approach to interim relief should be guided by well-settled principles of injunctions and the substantive relief sought, ensuring not to overstep into merits or final relief. (!) (!) (!) - Appointment of arbitrator and expeditious arbitration can be directed by the Supreme Court where arbitration proceedings are pending or unresolved. (!)

What is the scope and limits of the court’s power under Section 9 of the Arbitration and Conciliation Act, 1996 in granting interim measures?

What factors govern the grant of interim relief under Section 9, including balance of convenience, prima facie case, irreparable injury, and applicability of the Specific Relief Act?

What constitutes the relationship and balance between court intervention and arbitral tribunal proceedings in interim measures, and when should the court appoint an arbitrator?


JUDGMENT

P. K. Balasubramanyan, J.—

1.These Cross Appeals by Special Leave challenge the order passed by the High Court of Orissa in an appeal under Section 37(1)(a) of the Arbitration & Conciliation Act, 1996. The said appeal was one filed by the respondent in C.A. No. 6569 of 2005 which is the appellant in C.A. No. 6570 of 2005 challenging an order of the District Court at Sundargarh in a petition under Section 9 of the Act filed by the appellant in C.A. No. 6569 of 2005 and the respondent in C.A. No. 6570 of 2005. For convenience, the parties will hereinafter be referred to as “Adhunik Steels” and “O.M.M. Private Limited”. Adhunik Steels it was, that filed the application under Section 9 of the Act.

2.O.M.M. Private Limited obtained a mining lease from the Government of Orissa for mining manganese ore from certain extents of land situate in Sundargarh district in the State of Orissa. For reasons of its own, O.M.M. Private Limited entered into an agreement dated 14.5.2003 with Adhunik Steels for raising the manganese ore on its behalf. The term of the agreement was 10 years with effect from 18.5.2003, it conferred on Adhunik Steels an option to seek a renewal for a further term.

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