Case Note & Summary
The present appeal was filed under Section 37 of the Arbitration and Conciliation Act, 1996, challenging a judgment of a Single Judge dated 2 February 2005, which had upheld an arbitral award dated 13 December 2002 passed by the Arbitral Tribunal of the National Stock Exchange. The award pertained to disputes arising out of the Rules, Byelaws and Regulations of the National Stock Exchange. The appellant, Rahul Bajaj, initially sought to withdraw the appeal on 25 February 2016. However, the first respondent, Mangal Keshav Securities Limited, opposed the withdrawal, contending that it would cause great hardship and injustice due to fluctuations in the market price of 11,000 shares of ARBL, resulting in financial losses of approximately Rs.13.48 crores. The respondent took out a Notice of Motion No. 1028 of 2016 to resist the withdrawal. During arguments, the respondent did not press the motion but continued to oppose the withdrawal. The court considered the submissions and allowed the withdrawal of the appeal, but directed that the withdrawal shall not prejudice the rights of the first respondent under the award or in any pending proceedings. The court also clarified that the withdrawal would not affect the first respondent's right to recover amounts due under the award. The appeal was dismissed as withdrawn, and the Notice of Motion was disposed of accordingly.
Headnote
A) Arbitration Law - Withdrawal of Appeal - Section 37 of Arbitration and Conciliation Act, 1996 - Respondent's Opposition - The appellant sought to withdraw the appeal, but the respondent opposed on grounds of hardship due to price fluctuations of shares. The court allowed withdrawal but directed that the respondent's rights under the award and any pending proceedings shall not be prejudiced. Held that withdrawal of appeal does not automatically extinguish the respondent's rights, and the court can impose conditions to balance equities (Paras 2-4).
Issue of Consideration
Whether an appellant can withdraw an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, when the respondent opposes such withdrawal on grounds of hardship and financial loss.
Final Decision
Appeal dismissed as withdrawn. Notice of Motion disposed of. Withdrawal of appeal shall not prejudice the rights of the first respondent under the award or in any pending proceedings.
Law Points
- Withdrawal of appeal under Section 37 of Arbitration and Conciliation Act
- 1996
- can be opposed by respondent if it causes hardship or injustice
- court may impose conditions to protect respondent's interests.
