Case Note & Summary
The petitioner, Tulika Devidayal, filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking post-award relief to enforce a consent award dated 20 September 2019. The award was passed by an arbitral tribunal based on consent terms signed by the parties. Under the award, respondent no.1, Pradipkumar Laxmanbhai Patel, agreed to transfer immovable property described in Schedule-1 to the petitioner under a registered Tripartite Agreement dated 5 September 2013 without any consideration. Respondent no.1 also agreed to sign all necessary documents and bear all costs for the transfer, including payments to CIDCO. The award provided a period of six months for compliance, expiring on 20 March 2020. The petitioner alleged that respondent no.1 failed to act upon clause 2(d) of the consent terms and neglected to transfer the plots within the stipulated time. Respondent no.1 sought to take shelter under the COVID-19 lockdown, but the petitioner argued that the lockdown did not prevent the respondent from taking steps. The court considered whether post-award relief under Section 9 is maintainable. The court noted that Section 9 applies to both pre-award and post-award stages, and the relief sought is in aid of enforcement of the award. The court held that the petition is maintainable and granted the following reliefs: (i) respondent no.1 must file an affidavit disclosing all assets within four weeks; (ii) the Court Receiver is appointed in respect of the Schedule-1 property with power to take possession; (iii) respondents 1 and 2 are restrained from dealing with or disposing of their assets except in the ordinary course of business; (iv) respondent no.3 bank is directed to freeze the bank accounts of respondents 1 and 2 up to Rs.4,04,45,000/-. The court also granted liberty to the petitioner to apply for appointment of a receiver in respect of other properties. The petition was disposed of accordingly.
Headnote
A) Arbitration Law - Post-Award Relief - Section 9 of the Arbitration and Conciliation Act, 1996 - Maintainability - Petition under Section 9 seeking disclosure of assets, appointment of receiver, and injunction to enforce a consent award - Court held that post-award relief under Section 9 is maintainable and granted disclosure of assets under Order XXI Rule 41 CPC, appointment of Court Receiver, and injunction restraining respondents from dealing with assets (Paras 1-13).
Issue of Consideration
Whether post-award relief under Section 9 of the Arbitration and Conciliation Act, 1996 can be granted for enforcement of a consent award, including disclosure of assets, appointment of receiver, and injunction against dealing with assets
Final Decision
The court allowed the petition and granted the following reliefs: (i) respondent no.1 to file an affidavit disclosing all assets within four weeks; (ii) Court Receiver appointed in respect of Schedule-1 property with power to take possession; (iii) respondents 1 and 2 restrained from dealing with or disposing of their assets except in ordinary course of business; (iv) respondent no.3 bank directed to freeze bank accounts of respondents 1 and 2 up to Rs.4,04,45,000/-. Petition disposed of.
Law Points
- Post-award relief under Section 9 of the Arbitration and Conciliation Act
- 1996 is maintainable for enforcement of a consent award
- Order XXI Rule 41 CPC applies for disclosure of assets
- Court can appoint receiver and grant injunction to prevent dissipation of assets
