Case Note & Summary
The petitioner, Bharat Petroleum Corporation Ltd., filed an Arbitration Petition under Section 17 of the Arbitration Act, 1940, seeking to make an arbitration award dated 15.9.2000 a rule of the Bombay High Court. The award had granted the petitioner approximately Rs.44 Crores with interest at 11% per annum from 8.11.1994 and costs of Rs.1,51,000. The respondent, Reliance Industries Ltd., had previously challenged the award by filing Arbitration Petition No.150 of 2001, which was dismissed on 28.1.2002. An appeal against that dismissal (Appeal No.473 of 2002) was also dismissed on 2.7.2002, with the Appeal Court granting the respondent six weeks to comply with the award. The petitioner then filed a Special Leave Petition in the Supreme Court, which was admitted on 14.8.2003, but the petitioner did not press for a stay of execution. In the present petition, the respondent opposed the making of the award a rule of court solely on the ground that the appeal was pending in the Supreme Court. The court noted that the respondent's challenge had failed at all levels, and no stay had been granted. The court held that the pendency of an appeal without a stay does not prevent the award from being made a rule of court. Accordingly, the court allowed the petition, making the award a rule of court and directing a decree in terms thereof.
Headnote
A) Arbitration Law - Award Made Rule of Court - Section 17 Arbitration Act, 1940 - Execution of Award - The petitioner sought to make an arbitration award a rule of court under Section 17 of the Arbitration Act, 1940. The respondent opposed on the ground that an appeal against the award was pending in the Supreme Court. The court held that since the respondent's challenge to the award had failed before the Single Judge and the Appeal Court, and no stay of execution had been obtained from the Supreme Court, the award could be made a rule of court. The court directed that the award be made a rule of court and a decree be passed in terms thereof. (Paras 1-7)
Issue of Consideration
Whether an arbitration award can be made a rule of court under Section 17 of the Arbitration Act, 1940, when an appeal against the award is pending before the Supreme Court but no stay of execution has been granted.
Final Decision
The court allowed the petition, making the award dated 15.9.2000 a rule of the court and directing a decree in terms thereof.
Law Points
- Arbitration Act
- 1940
- Section 17
- Award made rule of court
- Pending appeal
- No stay
- Execution
Case Details
2006 LawText (BOM) (06) 25
Arbitration Petition No.198 of 2006
Mr.P.K.Samdani i/b.Udwadia & Udeshi for the Petitioner, Mr.S.C.Gupte for the Respondent
Bharat Petroleum Corporation Ltd.
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Nature of Litigation
Petition under Section 17 of the Arbitration Act, 1940 to make an arbitration award a rule of court.
Remedy Sought
Petitioner sought an order making the award dated 15.9.2000 a rule of the court and a decree in terms thereof.
Filing Reason
The respondent had not complied with the award and opposed its enforcement on the ground that an appeal was pending in the Supreme Court.
Previous Decisions
The respondent's challenge to the award was dismissed by the Single Judge on 28.1.2002 and by the Appeal Court on 2.7.2002. The Supreme Court admitted the petitioner's appeal on 14.8.2003 but no stay was granted.
Issues
Whether the pendency of an appeal before the Supreme Court without a stay of execution prevents the award from being made a rule of court under Section 17 of the Arbitration Act, 1940.
Submissions/Arguments
Petitioner argued that the award should be made a rule of court as the respondent's challenge had failed and no stay was obtained.
Respondent argued that the petition should be resisted because an appeal against the award was pending in the Supreme Court.
Ratio Decidendi
The pendency of an appeal against an arbitration award does not prevent the award from being made a rule of court under Section 17 of the Arbitration Act, 1940, unless a stay of execution has been obtained. Since the respondent's challenge had failed and no stay was granted, the award was enforceable.
Judgment Excerpts
The Petitioner seeks an order making an award dated 15.9.2000 a rule of this Court and for a decree in terms of the said award under section 17 of the Arbitration Act, 1940.
The above facts demonstrate three things. The Respondent’s challenge to the award failed before the learned Single Judge and the Appeal Court of this Court. Secondly, an application for stay of the execution of the award was obviously made on behalf of the Respondent before the Supreme Court and was not pressed.
Procedural History
The award was passed on 15.9.2000. The respondent filed Arbitration Petition No.150 of 2001 to challenge the award, which was dismissed on 28.1.2002. The respondent's appeal (Appeal No.473 of 2002) was dismissed on 2.7.2002. The petitioner filed a Special Leave Petition in the Supreme Court, which was admitted on 14.8.2003 without a stay. The present petition was filed on an unspecified date.
Acts & Sections
- Arbitration Act, 1940: Section 17
