IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.B. Suresh Kumar, P.G. Ajithkumar, JJ.
Lailamma Vasudevan W/o Vasudevan - Appellant
Vs.
Muthoot Vehicles & Assets Finance Limited - Respondent
Ex.F.A.No.14 of 2022
Decided On : 18-10-2023
Appeal - Arbitration Proceedings - Code of Civil Procedure, 1908 - Section 47, Section 97(2)(a), Section 97(3), Section 99A - The court held that an order under Section 47 of the Code is not appealable despite the insertion of Section 99A and the amendments to Section 2(2) and Section 99 by the Amendment Act of 1976. The court rejected the contention that the decision in Mohamemad Khan v. State Bank of Travancore [1978 KLT 262] was per incuriam and cited precedents from Andhra Pradesh High Court and Patna High Court to support its view.
Fact of the Case:
The case involved an appeal challenging an order of the Additional District Judge-I, Mavelikkara in a petition filed under Section 47 of the Code of Civil Procedure, 1908, relating to an arbitration proceeding. The appellants objected to the execution of an award, citing infractions of the Arbitration and Conciliation Act, 1996.
Finding of the Court:
The court found that the order under Section 47 of the Code was not appealable, despite the insertion of Section 99A and the amendments to Section 2(2) and Section 99 by the Amendment Act of 1976. The court dismissed the appeal as not maintainable.
Issues: The main issue was whether an appeal could be filed against an order under Section 47 of the Code of Civil Procedure, 1908, in light of the amendments and the insertion of Section 99A by the Amendment Act of 1976.
Ratio Decidendi: The court held that the intention of the Legislature, as inferred from the amendments and the insertion of Section 99A, was that an order under Section 47 is not appealable. The court cited precedents from Andhra Pradesh High Court and Patna High Court to support its view.
Final Decision: The court dismissed the appeal as not maintainable, ruling that an adjudication on a question as referred to in Section 47 of the Code cannot be assailed in an appeal under Section 96 of the Code, and such an order is not appealable under Section 104 of the Code.
ORDER :
P.G.Ajithkumar, J.
A Full Bench of this Court in Mohamemad Khan v. State Bank of Travancore [1978 KLT 262] held,
2. Apparently, the said principle of law would have to hold the field and this appeal filed under Section 96 of the Code of Civil Procedure, 1908 challenging the order of the Additional District Judge-I, Mavelikkara in a petition filed under Section 47 ought to be held not maintainable. The submission of the learned counsel for the respondent in that lines is, however, opposed by the learned counsel for the appellants by contending that the said decision is per incuriam inasmuch as the Full Bench did not advert to the provisions of Sections 97(2)(a) and 97(3) of the Code of Civil Procedure (Amendment) Act, 1976 (Act 104 of 1976). The learned counsel for the appellants would submit that the intent of Section 97(2)(a) of the Amendment Act of 1976 is that despite the amendment in Section 2(2) of the Code, an appeal against determination of a question as is referred to in Section 47 would lie and any interpretation making such an appeal not maintainable cannot be legal. In the view of the learned counsel, saving of such an appeal is obvious from the language of Section 97(2)(a) of the Amendment Act of 1976 for, the omission of words like ‘pending' or ‘filed before the commencement’ in Section 97(2)(a) is a casus omissus. It is contended that had the said provisions been considered, the Full Bench would not have taken such a view, and therefore the decision in Mohamemad Khan (supra) is incorrect.
3. This appeal relates to an arbitration proceedings initiated by the respondent against the appellants and their predecessor Sri.Vasudevan. Pending the arbitration proceedings Sri. Vasudevan expired. An Award was eventually passed in the said arbitration proceedings and the same was put in execution in E.P.No.192 of 2019. The appellants objected to the said execution petition by filing E.A.No.34 of 2021 invoking the provisions of Section 47 of the Code. They contended that copies of the relevant records were not furnished to them as insisted by Section 25(a) of the Arbitration and Conciliation Act, 1996 and a copy of the Award was not served on them as contemplated in Section 31(5) of the Act. And, it was urged that for such infractions the award is not executable. The Additional District Court dismissed that Execution Application as per the order dated 07.04.2022. The said order is under challenge in the appeal.
4. Any question regarding execution, discharge and satisfaction of a decree is liable to be determined by the court executing the decree and not by a separate suit. The question involved in E.A.No.34 of 2021 was also one relating to the executability of the award and therefore, one coming under Section 47 of the Code. The learned counsel appearing for the respondent would submit that after the amendment of Section 2(2) of the Code by deleting ‘Section 47 or’, a determination under Section 47 cannot be deemed to be a decree and therefore is not ap
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