Case Note & Summary
The Appellant, Oil & Natural Gas Corporation Ltd. (ONGC), filed a Commercial Arbitration Petition under Section 34 of the Arbitration and Conciliation Act, 1996 before the learned Single Judge of the Bombay High Court, challenging an arbitral award dated 22 March 2018. The award directed ONGC to pay the Respondent consortium a sum of USD 5,127,915.40 with interest at 14% per annum. ONGC filed the petition on 26 March 2018. On 25 March 2019, ONGC took out a Chamber Summons seeking to amend the petition to add additional grounds. The learned Single Judge allowed some amendments but rejected others. ONGC appealed against the rejection. The Respondent raised a preliminary objection that the appeal was not maintainable under Section 37 of the Act. The Division Bench, after hearing arguments, held that an order granting or refusing amendment of a Section 34 petition is not an appealable order under Section 37, as it does not finally determine the rights of the parties. The Court also noted that the rejected amendments sought to introduce new grounds after the expiry of the limitation period under Section 34(3), and thus the Single Judge's order was correct. The appeal was dismissed as not maintainable.
Headnote
A) Arbitration Law - Amendment of Section 34 Petition - Maintainability of Appeal - Section 37 of the Arbitration and Conciliation Act, 1996 - The Court considered whether an appeal lies against an order granting or refusing amendment of a petition under Section 34 of the Act. Held that such an order is not an appealable order under Section 37, as it does not finally decide the rights of the parties and is merely procedural. The appeal was dismissed as not maintainable. (Paras 1-10)
B) Arbitration Law - Limitation for Filing Objections - Section 34(3) of the Arbitration and Conciliation Act, 1996 - The Court noted that the amendment sought to introduce new grounds after the expiry of the limitation period for filing objections under Section 34(3). The learned Single Judge had correctly rejected those amendments as they would amount to filing fresh objections beyond the prescribed period. (Paras 3-5)
Issue of Consideration
Whether the appeal against the order of the learned Single Judge partially rejecting the amendment to the Section 34 petition is maintainable under the Arbitration and Conciliation Act, 1996.
Final Decision
The appeal is dismissed as not maintainable. The order of the learned Single Judge partially rejecting the amendment is upheld.
Law Points
- Amendment in Section 34 petition
- limitation for filing objections
- scope of Section 34
- maintainability of appeal against interlocutory order in arbitration matters
Case Details
2021 LawText (BOM) (07) 42
Commercial Appeal No. 55 of 2020 in Chamber Summons (L) No. 445 of 2019 in Commercial Arbitration Petition No. 437 of 2018
Nitin Jamdar, C. V. Bhadang
Mr. Zubin Behramkamdin with Mr. Rohit Gupta, Nishit Dhruva, Prakash Shinde, Khushbu Chhajed and Abhishek Bhavsar i/b. MDP & Partners for the Appellant; Mr. Kevic Setalvad, Senior Advocate with Ms. Renu Gupta, Ms. Sushma Nagaraj, Ms. Kinjal Patel and Ms. Vibhuti Keny for the Respondent.
Oil & Natural Gas Corporation Ltd.
A Consortium of Sime Darby Engineering Sdn. Bhd. and Swiber Offshore Construction Pte. Ltd.
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Nature of Litigation
Commercial appeal against an order of the learned Single Judge partially rejecting an amendment to a petition under Section 34 of the Arbitration and Conciliation Act, 1996.
Remedy Sought
The Appellant sought to challenge the order of the learned Single Judge rejecting certain amendments to the Section 34 petition.
Filing Reason
The Appellant was aggrieved by the rejection of amendments to the Section 34 petition challenging the arbitral award.
Previous Decisions
The learned Single Judge allowed some amendments and rejected others by the impugned order.
Issues
Whether the appeal against the order of the learned Single Judge partially rejecting the amendment to the Section 34 petition is maintainable under the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
The Respondent raised a preliminary objection that the appeal is not maintainable under Section 37 of the Act.
The Appellant argued that the order rejecting amendment is appealable as it affects the rights of the parties.
Ratio Decidendi
An order granting or refusing amendment of a petition under Section 34 of the Arbitration and Conciliation Act, 1996 is not an appealable order under Section 37 of the Act, as it does not finally determine the rights of the parties and is merely procedural.
Judgment Excerpts
The Appellant- Oil & Natural Gas Corporation Ltd. has filed a Commercial Arbitration Petition under Section 34 of the Arbitration and Conciliation Act, 1996 before the learned Single Judge challenging the arbitral award rendered against the Appellant.
Preliminary objection is taken by the Respondent to the maintainability of the appeal.
Procedural History
The Appellant filed Arbitration Petition No. 437/2018 on 26 March 2018 challenging the arbitral award dated 22 March 2018. On 25 March 2019, the Appellant took out Chamber Summons (L) No. 445/2019 to amend the petition. The learned Single Judge partially allowed the amendment by order dated [date not mentioned]. The Appellant filed Commercial Appeal No. 55 of 2020 against that order.
Acts & Sections
- Arbitration and Conciliation Act, 1996: 34, 37
