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
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Case Note & Summary

The appellant, Vinvin Enterprises (P) Limited, filed an Arbitration Petition under Section 37 of the Arbitration and Conciliation Act, 1996, challenging the refusal of an interim order under Section 17 by the learned Arbitrator. The District Judge dismissed the appeal. The appellant then filed a second appeal before the High Court under Section 37 of the Act. The High Court examined the maintainability of the second appeal in light of Section 37(3) of the Act, which provides that no second appeal shall lie from an order passed in an 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. 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 - Maintainability of Second Appeal - Section 37(3) of Arbitration and Conciliation Act, 1996 - The appellant filed a second appeal under Section 37 of the Act challenging the refusal of interim relief under Section 17 by the arbitrator and the dismissal of the appeal by the District Judge. The High Court held that Section 37(3) expressly bars a second appeal from an order passed in an appeal under Section 37, except a right to appeal to the Supreme Court. Therefore, the second appeal was not maintainable and was dismissed. (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 in an appeal under the same section.

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Final Decision

The High Court held that the second appeal is not maintainable in view of Section 37(3) of the Arbitration and Conciliation Act, 1996, which bars a second appeal from an order passed in an appeal under Section 37, except a right to appeal to the Supreme Court. The appeal was dismissed. Connected miscellaneous applications also 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) 41

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 dismissal of appeal by District Judge.

Remedy Sought

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

Filing Reason

The appellant was aggrieved by the refusal of interim relief under Section 17 by the arbitrator and the dismissal of the appeal by the District Judge.

Previous Decisions

The learned Arbitrator refused to grant interim order under Section 17. The District Judge 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 in an appeal under the same section.

Submissions/Arguments

The appellant argued that the second appeal was maintainable under Section 37 of the Act. The respondent did not appear.

Ratio Decidendi

Section 37(3) of the Arbitration and Conciliation Act, 1996 expressly provides that no second appeal shall lie from an order passed in an appeal under Section 37, except a right to appeal to the Supreme Court. Therefore, a second appeal under Section 37 against an order passed in an appeal under the same section 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 Arbitration Petition under Section 37 of the Act challenging the refusal of interim order under Section 17 by the arbitrator. The District Judge dismissed the appeal. The appellant then filed a second appeal under Section 37 before the High Court. The High Court dismissed the second appeal as not maintainable.

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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