Case Note & Summary
The petitioner, M/s. Kandla Cargo Handlers, challenged an order dated 27.6.2018 passed by the learned Principal District Judge, Nagpur, which granted an ex parte stay of execution proceedings (Special Darkhast No.1262/2015) without imposing any condition of deposit. The petitioner had filed an application under Section 24 of the Code of Civil Procedure, 1908 for transferring the application under Section 34 of the Arbitration and Conciliation Act, 1996 (M.C.A. No.593/2015) and the execution proceedings to the same court. The Principal District Judge granted stay ex parte and later rejected the petitioner's application to vacate the stay. Aggrieved, the petitioner approached the High Court. During hearing, both parties filed a Pursis (Stamp No.9309/2018 dated 26.7.2018) stating they had no objection if both matters were transferred to the Court of Principal District Judge, Nagpur for decision on merits, and that they would not raise any objection based on the Arbitration Act or the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015. The High Court, considering the consent, allowed the transfer and disposed of the petition, directing the Principal District Judge to decide the matters on merits without being influenced by the earlier orders.
Headnote
A) Civil Procedure - Transfer of Proceedings - Section 24 CPC - Consent of Parties - Parties filed Pursis stating no objection to transfer of Special Darkhast No.1262/2015 and M.C.A. No.593/2015 to the Court of Principal District Judge, Nagpur for decision on merits - Held that transfer is allowed as per consent, and parties shall not raise objections based on Arbitration Act or Commercial Courts Ordinance, 2015 (Paras 6-8).
Issue of Consideration
Whether the order dated 27.6.2018 passed by the Principal District Judge granting ex parte stay of execution proceedings without imposing any condition of deposit is sustainable.
Final Decision
The High Court allowed the transfer of Special Darkhast No.1262/2015 and M.C.A. No.593/2015 to the Court of Principal District Judge, Nagpur for decision on merits. The parties shall not raise any objection based on the Arbitration Act or the Commercial Courts Ordinance, 2015. The Principal District Judge shall decide the matters on merits without being influenced by the earlier orders. The writ petition is disposed of accordingly.
Law Points
- Transfer of proceedings under Section 24 CPC
- Consent of parties
- No objection to transfer
- Arbitration and Conciliation Act
- 1996 Sections 34 and 36
Case Details
2018 LawText (BOM) (08) 158
Writ Petition No.4129 of 2018
Shri Shyam Dewani for Petitioner, Shri Anil Mardikar (Senior Advocate) for Respondents
M/s. Kandla Cargo Handlers
M/s Container Corporation of India Ltd.
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Nature of Litigation
Writ petition challenging order of Principal District Judge granting ex parte stay of execution proceedings without condition of deposit.
Remedy Sought
Petitioner sought setting aside of the order dated 27.6.2018 and vacating of stay on execution proceedings.
Filing Reason
The Principal District Judge granted ex parte stay of execution proceedings without imposing any condition of deposit, and later rejected petitioner's application to vacate the stay.
Previous Decisions
Order dated 27.6.2018 granting ex parte stay; order dated 3.7.2018 rejecting application to vacate stay.
Issues
Whether the ex parte stay granted without condition of deposit is sustainable.
Whether the proceedings should be transferred to the same court for decision on merits.
Submissions/Arguments
Petitioner argued that stay was granted without imposing any condition of deposit, which is unjust.
Respondents agreed to transfer of both matters to Principal District Judge, Nagpur for decision on merits.
Ratio Decidendi
When parties consent to transfer of proceedings and agree not to raise jurisdictional objections, the court may order transfer under Section 24 CPC to ensure expeditious disposal on merits.
Judgment Excerpts
This petition challenges the order dated 27.6.2018 passed below application filed under Section 24 of the Code of Civil Procedure for transferring the application filed under Section 34 of the Arbitration and Conciliation Act, 1996 and proceedings initiated under Section 36 of the Arbitration Act for execution of the arbitral award to one and the same Court.
By the Pursis dated 26.7.2018, the rival parties have stated that they would have no objection if both the matters being Special Darkhast No.1262/2015 and M.C.A. No.593/2015 are transferred to the Court of Principal District Judge, Nagpur for a decision on merits of the case.
Procedural History
The petitioner filed an application under Section 24 CPC for transfer of proceedings. The Principal District Judge passed an ex parte order on 27.6.2018 granting stay of execution proceedings. On 3.7.2018, the petitioner's application to vacate stay was rejected. The petitioner then filed the present writ petition on 26.7.2018. During hearing, parties filed a Pursis consenting to transfer. The High Court disposed of the petition on 1.8.2018 allowing the transfer.
Acts & Sections
- Code of Civil Procedure, 1908: Section 24
- Arbitration and Conciliation Act, 1996: Section 34, Section 36
- Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Ordinance, 2015:
