Case Note & Summary
The case involves two appeals filed by Ramsarup Industries Limited and others against Tata Capital Financial Services Limited. The dispute arose from arbitration proceedings where the respondent had obtained orders for sale of mortgaged property. The appellants filed Chamber Summons seeking status quo on disposal of the property, but the learned Single Judge dismissed it on 9 June 2016. The appellants appealed, arguing that the sale was not yet complete as the conveyance deed remained to be executed. The Division Bench, comprising Justice Anoop V. Mohta and Justice G.S. Kulkarni, examined whether a concluded sale can be injuncted. The court noted that the sale had already been concluded through earlier orders, including a Division Bench order dated 17 February 2014 in Appeal No.41 of 2014. The only remaining step was execution of the conveyance deed. The court held that once a sale is concluded, no interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 can be granted to restrain execution of the deed, as it would amount to undoing a concluded transaction. The appeals were dismissed, and the court directed the appellants to pay costs of Rs. 50,000 to the respondent.
Headnote
A) Arbitration Law - Interim Measures - Concluded Sale - Section 9 of the Arbitration and Conciliation Act, 1996 - The appellants sought status quo on disposal of mortgaged property after sale was concluded and only execution of conveyance deed remained - The court held that once a sale is concluded, no interim measure under Section 9 can be granted to restrain execution of the conveyance deed, as the sale is already complete and the court cannot undo a concluded transaction (Paras 1-22).
Issue of Consideration
Whether the court can grant status quo or injunction to restrain execution of a conveyance deed after the sale of mortgaged property is concluded in arbitration proceedings.
Final Decision
Both appeals dismissed with costs of Rs. 50,000 to be paid by appellants to respondent.
Law Points
- Arbitration
- Interim measures
- Concluded sale
- Status quo
- Section 9 of the Arbitration and Conciliation Act
- 1996
- Injunction
- Mortgaged property
- Execution of conveyance deed
Case Details
2016 LawText (BOM) (08) 108
Appeal (Lodg) No. 275 of 2016, Appeal (Lodg) No. 276 of 2016
Anoop V. Mohta, G.S. Kulkarni
Mr. Dipesh Siroya for Appellants, Mr. Birendra Saraf with Mr. Tushar Kadam, Ms. Nazneen Kotwal, Mr. Abhishek Padwalkar i/b. MDP & Partners for Respondents
Ramsarup Industries Limited, Aashish Jhunjhunwala, M/s. Greentop Realtors Private Limited, M/s. Laddugopal Properties Private Limited, M/s. Amanant Merchant Private Limited
Tata Capital Financial Services Limited
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Nature of Litigation
Appeals against orders of learned Single Judge dismissing Chamber Summons seeking status quo on disposal of mortgaged property in arbitration proceedings.
Remedy Sought
Appellants sought status quo on disposal of subject mortgaged property and to restrain execution of conveyance deed.
Filing Reason
Appellants filed Chamber Summons to maintain status quo on sale of mortgaged property, which was dismissed by Single Judge.
Previous Decisions
Earlier orders including Division Bench order dated 17 February 2014 in Appeal No.41 of 2014 had concluded the sale; only execution of conveyance deed remained.
Issues
Whether the court can grant status quo or injunction to restrain execution of a conveyance deed after the sale of mortgaged property is concluded in arbitration proceedings.
Submissions/Arguments
Appellants argued that sale was not complete as conveyance deed remained to be executed, and thus status quo should be maintained.
Respondents argued that sale was already concluded and no interim relief could be granted to restrain execution of deed.
Ratio Decidendi
Once a sale is concluded, no interim measure under Section 9 of the Arbitration and Conciliation Act, 1996 can be granted to restrain execution of the conveyance deed, as the sale is already complete and the court cannot undo a concluded transaction.
Judgment Excerpts
Today the stage of sale is that a deed of conveyance remains to be executed.
Once a sale is concluded, no interim measure under Section 9 can be granted to restrain execution of the conveyance deed.
Procedural History
Appellants filed Chamber Summons No.1690 of 2015 in Arbitration Petition No.707 of 2012 seeking status quo; learned Single Judge dismissed it on 9 June 2016. Appeal (Lodg) No.276 of 2016 filed against that order. Another Chamber Summons No.64 of 2016 was also dismissed on same date, leading to Appeal (Lodg) No.275 of 2016. Both appeals heard together by Division Bench.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 9
