Case Note & Summary
The applicants, original respondent nos.1 to 5, filed Chamber Summons No.905 of 2013 in Letters Patent Petition No.226 of 2013 and Arbitration Petition No.1036 of 2013, seeking to set aside consent terms recorded by the court on 22 December 2015. The consent terms were entered into between the parties in the arbitration petition. The applicants contended that the consent terms were vitiated by fraud and coercion. The respondents opposed the chamber summons, arguing that consent terms recorded by the court are not arbitral awards and cannot be challenged under Section 34 of the Arbitration and Conciliation Act, 1996. The court held that consent terms recorded by the court are not arbitral awards as defined under Section 2(1)(c) of the Act, and therefore, a challenge under Section 34 is not maintainable. The chamber summons was dismissed as not maintainable, with no order as to costs.
Headnote
A) Arbitration Law - Challenge to Consent Terms - Maintainability - Consent terms recorded by the court in an arbitration petition do not constitute an arbitral award under Section 2(1)(c) of the Arbitration and Conciliation Act, 1996 - A challenge under Section 34 of the Act is not maintainable against such consent terms - The chamber summons seeking to set aside the consent terms was dismissed as not maintainable (Paras 1-10).
Issue of Consideration
Whether consent terms recorded by the court in an arbitration petition can be challenged under Section 34 of the Arbitration and Conciliation Act, 1996, and whether the chamber summons seeking to set aside such consent terms is maintainable.
Final Decision
The chamber summons was dismissed as not maintainable. No order as to costs.
Law Points
- Consent terms recorded by court are not arbitral awards
- Section 34 challenge not maintainable
- Chamber summons dismissed
Case Details
2015 LawText (BOM) (12) 48
Chamber Summons No.905 of 2013 in Letters Patent Petition No.226 of 2013 in Arbitration Petition No.1036 of 2013
Dr. Milind Sathe, Senior Advocate a/w Ms. Ankita Singhania a/w Ms. Manik Joshi i/by M/s. Crawford Bayley & Co. for the applicants/original respondent nos.1 to 5; Mr. F.E. Devitre, Senior Advocate a/w Mr. Shiraj Rustamjee, Senior Advocate a/w Mr. Rohan Cama i/by M/s. Dastur Dadhich & Kalambi for the Respondents and for the petitioners in Arb. Petn. No.1036 of 2013.
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Nature of Litigation
Chamber summons seeking to set aside consent terms recorded in an arbitration petition.
Remedy Sought
The applicants sought to set aside the consent terms recorded by the court on 22 December 2015.
Filing Reason
The applicants alleged that the consent terms were vitiated by fraud and coercion.
Previous Decisions
Consent terms were recorded by the court in Arbitration Petition No.1036 of 2013 on 22 December 2015.
Issues
Whether consent terms recorded by the court in an arbitration petition constitute an arbitral award under the Arbitration and Conciliation Act, 1996.
Whether a challenge under Section 34 of the Act is maintainable against such consent terms.
Submissions/Arguments
The applicants argued that the consent terms were vitiated by fraud and coercion and should be set aside.
The respondents contended that consent terms recorded by the court are not arbitral awards and cannot be challenged under Section 34 of the Act.
Ratio Decidendi
Consent terms recorded by the court are not arbitral awards under Section 2(1)(c) of the Arbitration and Conciliation Act, 1996, and therefore, a challenge under Section 34 of the Act is not maintainable.
Judgment Excerpts
Consent terms recorded by the court are not arbitral awards and cannot be challenged under Section 34 of the Arbitration and Conciliation Act, 1996.
Procedural History
The applicants filed Chamber Summons No.905 of 2013 in Letters Patent Petition No.226 of 2013 and Arbitration Petition No.1036 of 2013 seeking to set aside consent terms recorded on 22 December 2015. The respondents opposed the chamber summons. The court heard the matter and dismissed the chamber summons as not maintainable.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 2(1)(c), Section 34
