Bombay High Court Allows Additional Documents in Arbitration Petition Despite Delay, Subject to Costs — Charge-Sheet Filed Against Contractor Relevant to Dispute Under Section 34 of Arbitration and Conciliation Act, 1996.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment concerns two notices of motion filed in pending commercial arbitration petitions under Section 34 of the Arbitration and Conciliation Act, 1996. The applicant, Konkan Irrigation Development Corporation (KIDC), sought to place on record a charge-sheet dated 25 August 2015 against the respondent, M/s. F.A. Enterprises, in Commercial Arbitration Petition (L) No. 681 of 2019. Similarly, the State of Maharashtra sought to place on record the same charge-sheet in Commercial Arbitration Petition No. 921 of 2019. The charge-sheet was filed by the Anti-Corruption Bureau against various persons including the respondent. The court noted that the charge-sheet was relevant to the pending arbitration petitions. Despite the delay in filing the applications, the court allowed the documents to be placed on record, subject to payment of costs of Rs. 25,000 by each applicant to the respondent. The court directed that the costs be paid within two weeks and that the documents be taken on record only after such payment. The notices of motion were disposed of accordingly.

Headnote

A) Arbitration - Section 34 Petition - Additional Evidence - Charge-Sheet - The court allowed the applicant to place on record a charge-sheet dated 25 August 2015 against the respondent, holding that the document was relevant to the pending arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996, despite the delay in filing the application, subject to payment of costs of Rs. 25,000 to the respondent. (Paras 1-3)

B) Arbitration - Condonation of Delay - Costs - The court condoned the delay in filing the notice of motion seeking to place additional documents on record, imposing costs of Rs. 25,000 on the applicant, payable to the respondent, as a condition for allowing the application. (Para 3)

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Issue of Consideration

Whether a charge-sheet filed against the respondent after the arbitral award can be placed on record in a Section 34 petition under the Arbitration and Conciliation Act, 1996, and whether the delay in filing such application should be condoned.

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Final Decision

The court allowed the notices of motion, permitting the applicants to place on record the charge-sheet dated 25 August 2015, subject to payment of costs of Rs. 25,000 each to the respondent within two weeks. The documents were to be taken on record only after payment of costs.

Law Points

  • Additional evidence in Section 34 petition
  • charge-sheet relevance
  • condonation of delay
  • costs for belated filing
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Case Details

2019 LawText (BOM) (10) 108

Notice of Motion (L) No. 2007 of 2019 in Commercial Arbitration Petition (L) No. 681 of 2019 and Notice of Motion No. 2192 of 2019 in Commercial Arbitration Petition No. 921 of 2019

2019-10-22

R.D. Dhanuka

Mr. Gopal Krishna Shivaram, Ms. Pinky Bhansali, Mr. S.G. Aney, Ms. Shweta Sangtani, Mr. Yash Momaya, Mr. Dinesh B. Khaire, Ms. Geeta Shastri, Mr. Anil Anturkar, Mr. Vikram Nankani, Mr. P. Narayan, Mr. Prashant Patil, Mr. Kapil Chiddanand, Mr. Shubham Misar, Mr. Yatin Malvankar, Mr. Pranav Patil, Ms. Siddhi Sabne, Ms. Niharika Shewde, Ms. Shilpa Chidanand, Mr. Sachin Shintre

Konkan Irrigation Development Corporation

M/s. F.A. Enterprises

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Nature of Litigation

Interlocutory application in a commercial arbitration petition under Section 34 of the Arbitration and Conciliation Act, 1996, seeking to place additional documents on record.

Remedy Sought

The applicant (Konkan Irrigation Development Corporation) sought permission to place on record a charge-sheet dated 25 August 2015 in the pending arbitration petition.

Filing Reason

The charge-sheet was filed by the Anti-Corruption Bureau against various persons including the respondent, and the applicant considered it relevant to the pending arbitration petition.

Issues

Whether the charge-sheet dated 25 August 2015 can be placed on record in the pending Section 34 petition. Whether the delay in filing the application should be condoned.

Submissions/Arguments

The applicant argued that the charge-sheet is relevant to the pending arbitration petition. The respondent opposed the application on the ground of delay.

Ratio Decidendi

The court held that additional documents relevant to a Section 34 petition can be placed on record even if there is a delay, subject to payment of costs to the opposite party.

Judgment Excerpts

The applicant i.e. Konkan Irrigation Development Corporation (KIDC), the original petitioner and applicant in Notice of Motion (L) No. 2007 of 2019 seeks permission to place on record in the Commercial Arbitration Petition (L) No. 681 of 2019, the charge-sheet dated 25th August, 2015 annexed as Exh.A to the affidavit in support of the Notice of Motion against various persons including the respondent no.1 i.e. M/s. F.A. Enterprises. The learned counsel for the respondent no.1 opposed the application on the ground of delay. In my view, the charge-sheet is relevant for the purpose of deciding the pending arbitration petition. The delay in filing the notice of motion is condoned subject to payment of costs of Rs.25,000/- to the respondent no.1.

Procedural History

The applicant filed Notice of Motion (L) No. 2007 of 2019 in Commercial Arbitration Petition (L) No. 681 of 2019 and Notice of Motion No. 2192 of 2019 in Commercial Arbitration Petition No. 921 of 2019 seeking to place on record a charge-sheet. The motions were heard and disposed of by this order.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: 34
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High Court Bombay High Court Allows Additional Documents in Arbitration Petition Despite Delay, Subject to Costs — Charge-Sheet Filed Against Contractor Relevant to Dispute Under Section 34 of Arbitration and Conciliation Act, 1996.
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