Case Note & Summary
The petitioner, Montana Developers Private Limited, filed a petition under Section 27 of the Arbitration and Conciliation Act, 1996, seeking an order for issuance of witness summons against various persons/entities to produce documents before the learned arbitrator. The petitioner was the claimant in the arbitration proceedings, and the respondents were the original respondents. By consent of parties, a former Chief Justice of India was appointed as sole arbitrator on 17th September 2013 and 1st October 2013. The petitioner filed a statement of claim on 30th November 2013. The respondents filed their statement of defence. The petitioner sought production of documents from third parties, including bank statements, property records, and other financial documents, to support its claims. The court considered the relevance and necessity of the documents and allowed the petition, directing the issuance of witness summons and production of documents as prayed, subject to the arbitrator's discretion to exclude irrelevant documents.
Headnote
A) Arbitration - Witness Summons - Section 27 of the Arbitration and Conciliation Act, 1996 - Court allowed petition seeking issuance of witness summons to various persons/entities for production of documents before the arbitrator - Held that the documents sought were relevant and necessary for adjudication of disputes between the parties (Paras 1-5).
Issue of Consideration
Whether the court should issue witness summons and direct production of documents under Section 27 of the Arbitration and Conciliation Act, 1996, at the request of the petitioner in an ongoing arbitration.
Final Decision
Petition allowed. Court directs issuance of witness summons to the persons/entities named in the petition to produce the documents as prayed before the learned arbitrator on 11th July 2016 at 11:00 a.m. The arbitrator may exclude any document found irrelevant.
Law Points
- Section 27 of the Arbitration and Conciliation Act
- 1996 empowers the court to issue witness summons and order production of documents for arbitration proceedings
- provided the applicant demonstrates relevance and necessity of the documents for adjudication of disputes between the parties.
Case Details
2016 LawText (BOM) (06) 71
Arbitration Petition (Lodging) No. 680 of 2016
Mr. Virag Tulzapurkar, Senior Counsel with Mr. Farid Karachiwala and Mr. Sahil Sayed i/b M/s. Wadia Ghandy & Co. for the Petitioner. Mr. Pradeep Sancheti, Senior Counsel with Dr. Birendra Saraf, Ms. Pooja Kshirsagar, Mr. Yogesh Adhia and Mr. Anand Chovatia i/b Mr. Yogesh Adhia for the Respondents.
Montana Developers Private Limited
Aditya Developers, Shri Binal S. Koradia, Shri Binal S. Koradia HUF, Smt. Amisha Binal Koradia, Shri Arvind Shamji Chedda, Shri Jayant Shamji Chedda, Shri Manish Mulchand Chedda, Ms. Heena Parag Chedda
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Nature of Litigation
Petition under Section 27 of the Arbitration and Conciliation Act, 1996 seeking issuance of witness summons and production of documents in ongoing arbitration proceedings.
Remedy Sought
Petitioner seeks an order for issuance of witness summons against various persons/entities to produce documents before the learned arbitrator.
Filing Reason
Petitioner requires documents from third parties to prove its claims in the arbitration.
Previous Decisions
Arbitrator appointed by consent on 17th September 2013 and 1st October 2013; statement of claim filed on 30th November 2013; statement of defence filed by respondents.
Issues
Whether the court should issue witness summons and direct production of documents under Section 27 of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
Petitioner argued that the documents sought are relevant and necessary for adjudication of disputes.
Respondents opposed the petition on grounds of relevance and burden.
Ratio Decidendi
Under Section 27 of the Arbitration and Conciliation Act, 1996, the court has the power to issue witness summons and order production of documents for arbitration proceedings if the documents sought are relevant and necessary for adjudication of disputes between the parties.
Judgment Excerpts
By this petition filed under section 27 of the Arbitration & Conciliation Act, 1996 (for short the 'Arbitration Act') the petitioner seeks an order and direction for issuance of witness summons against various persons / entities with a direction to produce various documents set out in prayer clauses (a) and (b) of the petition before the learned arbitrator on 11th July, 2016 at 11:00 a.m.
Procedural History
Petitioner filed Arbitration Petition (Lodging) No. 680 of 2016 under Section 27 of the Arbitration and Conciliation Act, 1996. The petition was heard by the High Court of Bombay on 22nd June 2016 and allowed.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 27
