Bombay High Court Dismisses Second Appeal Under Section 37(3) of Arbitration Act as Not Maintainable. No Second Appeal Lies Against Order Passed in Appeal Under Section 37 of Arbitration and Conciliation Act, 1996.

High Court: Bombay High Court Bench: BOMBAY
  • 55
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Case Note & Summary

The appellant, Vinvin Enterprises (P) Limited, filed a second appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenging the refusal of an interim order under Section 17 of the Act by the learned Arbitrator. The appellant had earlier invoked Section 37 before the District Court, which rejected the appeal. The appellant then filed the present second appeal before the High Court. The High Court examined the maintainability of the second appeal in light of Section 37(3) of the Act, which explicitly states that no second appeal shall lie from an order passed in appeal under Section 37, except a right to appeal to the Supreme Court. The Court also noted Section 5 of the Act, which restricts judicial intervention. Consequently, the Court held that the second appeal was not maintainable and dismissed it along with the connected miscellaneous applications, with no order as to costs.

Headnote

A) Arbitration Law - Appealability - Second Appeal under Section 37 - Section 37(3) of the Arbitration and Conciliation Act, 1996 - The issue was whether a second appeal lies against an order passed by the District Court in an appeal under Section 37 of the Act. The Court held that Section 37(3) expressly bars a second appeal from an order passed in appeal under Section 37, except a right to appeal to the Supreme Court. Therefore, the second appeal was not maintainable. (Paras 2-3)

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Issue of Consideration

Whether a second appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is maintainable against an order passed by the District Court in an appeal under Section 37 of the Act.

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Final Decision

The second appeal is dismissed as not maintainable. The connected miscellaneous applications NMA/1099/2014 and NMAST/1831/2014 also stand disposed of. No order as to costs.

Law Points

  • No second appeal lies from an order passed in appeal under Section 37 of the Arbitration and Conciliation Act
  • 1996
  • Section 5 restricts court intervention
  • Section 37(3) bars second appeal except to Supreme Court
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Case Details

2016 LawText (BOM) (01) 40

Arbitration Appeal (L) No. 501 of 2014 in Arbitration Petition No. 1352 of 2013 along with NMA/1099/2014 and NMAST/1831/2014

2016-01-25

Anoop V. Mohta, Dr. Shalini Phansalkar-Joshi

Mr. Kunal Bhanage I/by Utangale & Co. for the Appellant. None for respondent.

Vinvin Enterprises (P) Limited

M/s. Indage Vintners Limited (Formerly Champane Indage Limited)

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Nature of Litigation

Second appeal under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the refusal of interim order under Section 17 by the Arbitrator and the dismissal of appeal by the District Court.

Remedy Sought

The appellant sought to challenge the order of the District Court dismissing the appeal under Section 37 of the Act.

Filing Reason

The appellant was aggrieved by the refusal of interim order under Section 17 by the learned Arbitrator and the subsequent dismissal of the appeal by the District Court.

Previous Decisions

The learned Arbitrator refused to grant interim measure under Section 17. The District Court dismissed the appeal under Section 37 of the Act.

Issues

Whether a second appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is maintainable against an order passed by the District Court in an appeal under Section 37 of the Act.

Submissions/Arguments

The appellant argued that the second appeal was maintainable. The respondent did not appear.

Ratio Decidendi

Section 37(3) of the Arbitration and Conciliation Act, 1996 expressly bars a second appeal from an order passed in appeal under Section 37, except a right to appeal to the Supreme Court. Therefore, a second appeal before the High Court is not maintainable.

Judgment Excerpts

No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or taken away any right to appeal to the Supreme Court. The mandate of provision (clause 3) itself is sufficient to dispose of the present Second Appeal, as not maintainable.

Procedural History

The appellant filed an application under Section 17 of the Arbitration and Conciliation Act, 1996 before the learned Arbitrator seeking interim measures, which was refused. The appellant then filed an appeal under Section 37 of the Act before the District Court, which dismissed the appeal. The appellant thereafter filed the present second appeal under Section 37 before the High Court.

Acts & Sections

  • Arbitration and Conciliation Act, 1996: Section 5, Section 17, Section 37, Section 37(1)(b), Section 37(3)
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High Court Bombay High Court Dismisses Second Appeal Under Section 37(3) of Arbitration Act as Not Maintainable. No Second Appeal Lies Against Order Passed in Appeal Under Section 37 of Arbitration and Conciliation Act, 1996.
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