Case Note & Summary
The petitioners, Wind World (India) Limited and others, filed an arbitration petition under Section 37 of the Arbitration and Conciliation Act, 1996, challenging an order dated 8th March 2016 passed by the arbitral tribunal. The tribunal, by majority, directed the petitioners to produce various documents to the respondents, Enercon GmbH and Wobben Properties GmbH, and granted interim measures. The petitioners also sought a stay of the timetable contained in order no.7 dated 3rd February 2016 and all further proceedings before the tribunal. The court, after hearing the parties, dismissed the petition, holding that the impugned order did not suffer from any patent illegality or perversity and that the tribunal had exercised its discretion properly. The court noted that the appeal under Section 37 is not a rehearing on merits and interference is warranted only in exceptional cases. The petition was dismissed with no order as to costs.
Headnote
A) Arbitration Law - Appeal against interim order - Section 37 of Arbitration and Conciliation Act, 1996 - Scope of interference - The court held that the scope of interference under Section 37 is limited and the impugned order did not suffer from any patent illegality or perversity warranting interference. (Paras 1-2)
Issue of Consideration
Whether the impugned order dated 8th March 2016 passed by the arbitral tribunal directing production of documents and granting interim measures is liable to be set aside under Section 37 of the Arbitration and Conciliation Act, 1996.
Final Decision
The court dismissed the arbitration petition with no order as to costs.
Law Points
- Section 37 of Arbitration and Conciliation Act
- 1996
- appeal against arbitral tribunal's interim order
- scope of interference limited to patent illegality or perversity
- arbitral tribunal's discretion in ordering document production and interim measures not to be interfered with lightly
Case Details
2016 LawText (BOM) (03) 80
Arbitration Petition (L) No.374 of 2016
Mr.Atul Rajadhyaksha, Senior Advocate a/w Mr.Zal Andhyarujina a/w Mr.Rohan Rajadhyaksha a/w Mr.Ameet Hariani a/w Mr.Aditya Khandeparkar a/w Mr.Anirudh Hariani i/by M/s.Hariani & Co. for the petitioners. Mr.Aspi Chinoy, Senior Advocate a/w Mr.Zubin Behramkamdin a/w Mr.Sharan Jagtiani a/w Mr.Jehangir Jejeebhoy a/w Mr.Vivek Vashi a/w Ms.Kanika Sharma a/w Mr.Krishendev Satya a/w Ms.Shaheda Madraswala i/by M/s.Bharucha & Partners for the respondents.
Wind World (India) Limited, Yogesh J. Mehra, Ajay J. Mehra
Enercon GmbH, Wobben Properties GmbH
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Nature of Litigation
Arbitration petition under Section 37 of the Arbitration and Conciliation Act, 1996 challenging an interim order of the arbitral tribunal.
Remedy Sought
Petitioners sought to set aside the order dated 8th March 2016 passed by the arbitral tribunal directing production of documents and granting interim measures, and also sought stay of the timetable and further proceedings.
Filing Reason
Petitioners were aggrieved by the arbitral tribunal's order directing them to produce documents and granting interim measures to the respondents.
Previous Decisions
The arbitral tribunal had passed order no.7 dated 3rd February 2016 and the impugned order dated 8th March 2016.
Issues
Whether the impugned order of the arbitral tribunal suffers from patent illegality or perversity warranting interference under Section 37 of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
Petitioners argued that the arbitral tribunal's order was erroneous and should be set aside.
Respondents supported the order and submitted that the petition should be dismissed.
Ratio Decidendi
The scope of interference under Section 37 of the Arbitration and Conciliation Act, 1996 is limited to cases of patent illegality or perversity. The impugned order of the arbitral tribunal did not suffer from any such infirmity and was a proper exercise of discretion.
Judgment Excerpts
By this petition filed under Section 37 of the Arbitration and Conciliation Act, 1996... the petitioners have impugned the order dated 8th March 2016 passed by the arbitral tribunal...
Procedural History
The arbitral tribunal passed order no.7 dated 3rd February 2016 and the impugned order dated 8th March 2016. The petitioners filed the present petition under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the order dated 8th March 2016. The petition was heard and dismissed on 29th March 2016.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 37
