Case Note & Summary
The appeal was filed by the original petitioners, Birla International Pvt. Ltd. and Nirved Traders Pvt. Ltd., against the order of the learned Single Judge refusing to grant interim relief under Section 9 of the Arbitration and Conciliation Act, 1996. The dispute arose out of a financial transaction between the appellants and the respondent, Karvy Financial Services Limited. The appellants sought interim relief to restrain the respondent from taking any coercive steps against them pending arbitration. The learned Single Judge refused the relief on the ground that the arbitral tribunal, once constituted, could grant such relief under Section 17 of the Act. The Division Bench of the Bombay High Court, in appeal under Section 37 of the Act, held that the court's power under Section 9 is not ousted merely because the tribunal can grant similar relief. The court observed that the purpose of Section 9 is to provide a remedy to a party before the tribunal is constituted or when the tribunal is not in a position to act. The court set aside the order of the learned Single Judge and remanded the matter for fresh consideration on merits. The court directed that the interim application be decided afresh, keeping in view the principles laid down in the judgment.
Headnote
A) Arbitration Law - Interim Measures - Section 9 of the Arbitration and Conciliation Act, 1996 - Court's Power to Grant Interim Relief - The issue was whether the court could grant interim relief under Section 9 when the arbitral tribunal is also empowered under Section 17. The court held that the power of the court under Section 9 is not ousted merely because the tribunal can grant similar relief. The court can grant interim relief if the circumstances warrant, especially when the tribunal has not yet been constituted or is not in a position to act. (Paras 1-7) B) Arbitration Law - Appeal against Order Refusing Interim Relief - Section 37 of the Arbitration and Conciliation Act, 1996 - Maintainability - The appeal under Section 37 against an order refusing interim relief under Section 9 is maintainable. The court set aside the order of the learned Single Judge which had refused to grant interim relief on the ground that the arbitral tribunal could grant such relief. (Paras 1-7)
Issue of Consideration
Whether the court can grant interim relief under Section 9 of the Arbitration and Conciliation Act, 1996, when the arbitral tribunal is also empowered to grant such relief under Section 17 of the Act.
Final Decision
The appeal is allowed. The order of the learned Single Judge is set aside. The matter is remanded to the learned Single Judge for fresh consideration of the interim application on merits, in accordance with law and the observations made in the judgment.
Law Points
- Section 9 of the Arbitration and Conciliation Act
- 1996
- Section 37 of the Arbitration and Conciliation Act
- Interim measures
- Court's power to grant interim relief pending arbitration
- Concurrent jurisdiction of court and arbitral tribunal
