Case Note & Summary
The appellant, The TJSB Sahakari Bank Ltd., a bank registered under the Multi-State Cooperative Societies Act, 2002, filed an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, against the judgment and order dated 28th November, 2013 passed by the learned District Judge-9, Pune. The District Judge had rejected Miscellaneous Civil Application No. 326 of 2011 filed by the appellant under Section 34 of the Act challenging an arbitral award dated 7th February, 2011. The dispute arose when respondent nos. 1 and 2 approached the appellant-bank for a housing loan to purchase Flat No. 42 situated at Sagar Apartments, Village Chikhali, Taluka Haveli, from respondent no. 6, M/s. Parth Associates, a partnership firm. An Agreement of Sale dated 16th November, 2009 was executed between respondent no. 6 and respondent no. 1. The appellant-bank raised a dispute before an arbitral tribunal, which passed an award. The bank then challenged the award under Section 34 of the Act, but the District Judge rejected the application. Aggrieved by this rejection, the bank filed the present appeal under Section 37 of the Act. The respondents were served but did not appear. The Court, after considering the facts and submissions, found no infirmity in the District Judge's order and dismissed the appeal.
Headnote
A) Arbitration Law - Appeal under Section 37 - Challenge to Order under Section 34 - Scope of Interference - The appellant-bank filed an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against the rejection of its application under Section 34 of the Act challenging an arbitral award. The Court held that the District Judge's order did not suffer from any infirmity and dismissed the appeal. (Paras 1-3)
B) Cooperative Societies - Housing Loan - Arbitral Award - The dispute arose from a housing loan granted by the appellant-bank to respondent nos. 1 and 2 for purchase of a flat. The arbitral tribunal passed an award dated 7th February, 2011, which was challenged by the bank under Section 34 of the Act. The challenge was rejected by the District Judge. (Paras 3-4)
Issue of Consideration
Whether the judgment and order dated 28th November, 2013 passed by the learned District Judge-9, Pune rejecting the appellant's application under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the arbitral award dated 7th February, 2011, is liable to be set aside in an appeal under Section 37 of the Act.
Final Decision
The appeal is dismissed. The judgment and order dated 28th November, 2013 passed by the learned District Judge-9, Pune is upheld.
Law Points
- Section 37 of the Arbitration and Conciliation Act
- 1996
- Section 34 of the Arbitration and Conciliation Act
- Multi-State Cooperative Societies Act
- 2002
- Section 84 of the Multi-State Cooperative Societies Act
Case Details
2019 LawText (BOM) (07) 85
Arbitration Appeal No. 54 of 2013
Mr. Bhupesh V. Samant for the appellant. None present for the respondents.
The TJSB Sahakari Bank Ltd. (earlier known as The Thane Janta Sahakari Bank Ltd.)
Sandeep Sudhakar Rajeshirke, Mrs. Sheetal Sandeep Rajeshirke, Shri Dayanand Bhagawan Gaikwad, Shri Nand Narayan Mathurai, Shri J.S. Patil (Arbitrator), M/s. Parth Associates
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Nature of Litigation
Appeal under Section 37 of the Arbitration and Conciliation Act, 1996 against rejection of application under Section 34 of the Act challenging an arbitral award.
Remedy Sought
The appellant-bank sought to set aside the judgment and order dated 28th November, 2013 passed by the District Judge-9, Pune rejecting its application under Section 34 of the Act.
Filing Reason
The appellant-bank was aggrieved by the rejection of its challenge to the arbitral award dated 7th February, 2011.
Previous Decisions
The learned District Judge-9, Pune rejected Miscellaneous Civil Application No. 326 of 2011 filed by the appellant under Section 34 of the Act challenging the arbitral award dated 7th February, 2011.
Issues
Whether the District Judge's order rejecting the Section 34 application is liable to be set aside in an appeal under Section 37 of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
The appellant-bank argued that the District Judge erred in rejecting its application under Section 34 of the Act.
Ratio Decidendi
The Court found no infirmity in the District Judge's order rejecting the appellant's application under Section 34 of the Arbitration and Conciliation Act, 1996, and therefore dismissed the appeal under Section 37 of the Act.
Judgment Excerpts
This is an appeal filed by the appellant under section 37 of the Arbitration and Conciliation Act, 1996 being aggrieved by the judgment and order dated 28th November, 2013 passed by the learned District Judge9, Pune whereby Miscellaneous Civil Application no. 326 of 2011 filed by the appellant under section 34 of the Act challenging the award dated 7th February, 2011 passed the learned Arbitrator is rejected.
In brief, the facts are The appellant is a bank registered under the MultiState Cooperative Societies Act, 2002. Respondent nos. 1 and 2 had approached the appellantbank for financial assistance in the nature of housing loan for purchasing Flat No. 42 situated at Sagar Apartments, Village Chikhali, Taluka Haveli as described in detail in paragraph 3 of the Dispute raised by the appellant before an arbitral tribunal.
Procedural History
The appellant-bank raised a dispute before an arbitral tribunal. The arbitral tribunal passed an award dated 7th February, 2011. The appellant filed Miscellaneous Civil Application No. 326 of 2011 under Section 34 of the Arbitration and Conciliation Act, 1996 before the District Judge-9, Pune challenging the award. The District Judge rejected the application on 28th November, 2013. The appellant then filed the present appeal under Section 37 of the Act before the Bombay High Court.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 34, Section 37
- Multi-State Cooperative Societies Act, 2002: Section 84
