Case Note & Summary
The appellant, Mr. Abdulgapr Maktumsab Hudali, filed an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, challenging the judgment and order dated 20.04.2016 passed by the Principal District Judge, Kolhapur in Civil Miscellaneous Application No.296 of 2008. The District Judge had dismissed the appellant's application under Section 34 of the Act, thereby confirming the Arbitral Award dated 04.08.2008. The dispute arose from a partnership firm 'M/s. Rubb Steel', originally a proprietary concern of the appellant, which was later converted into a partnership. The respondents, Sardar Mohammad Pathan and Bashir Mohammad Pathan, were admitted as partners with 50% and 45% shares respectively, leaving the appellant with only 5% share. A Memorandum of Understanding dated 05.12.1995 was executed between the parties, under which the respondents agreed to pay a total amount of Rs. 8,75,000/- to the appellant towards consideration of the property (Plot No. B-37 in Gokul Shirgaon Industrial Area) and assets of the partnership. Out of this amount, Rs.1,25,000/- was to be paid to MIDC for expenses. The respondents filed arbitration proceedings against the appellant, leading to the arbitral award. The appellant challenged the award under Section 34, which was dismissed by the District Judge. In the present appeal, the High Court heard the matter and, considering the narrow controversy, admitted the appeal and took it up for final disposal with consent. The court found no merit in the appeal and dismissed it, upholding the District Judge's order and the arbitral award.
Headnote
A) Arbitration Law - Appeal under Section 37 - Challenge to Order under Section 34 - The appeal was filed under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the order of the Principal District Judge dismissing the application under Section 34 of the Act. The court held that the scope of interference under Section 34 is limited and the award was not patently illegal or against public policy. (Paras 1-4)
B) Arbitration Law - Arbitral Award - Confirmation by District Judge - The District Judge confirmed the Arbitral Award dated 04.08.2008. The High Court upheld the same, finding no merit in the appeal. (Paras 3-4)
Issue of Consideration
Whether the judgment and order dated 20.04.2016 passed by the Principal District Judge, Kolhapur in Civil Miscellaneous Application No.296 of 2008 dismissing the application under Section 34 of the Arbitration and Conciliation Act, 1996 and confirming the Arbitral Award dated 04.08.2008 is liable to be set aside.
Final Decision
The High Court dismissed the appeal, upholding the judgment and order dated 20.04.2016 passed by the Principal District Judge, Kolhapur in Civil Miscellaneous Application No.296 of 2008, which had dismissed the application under Section 34 of the Arbitration and Conciliation Act, 1996 and confirmed the Arbitral Award dated 04.08.2008.
Law Points
- Section 37 of Arbitration and Conciliation Act
- 1996
- Section 34 of Arbitration and Conciliation Act
- Scope of interference with arbitral award
- Patent illegality
- Public policy
Case Details
2026 LawText (BOM) (07) 123
Arbitration Appeal No. 7 of 2019 with Civil Application No. 12 of 2017
Mr. Yuvraj Narvankar a/w Mr. Rahul Patil for the Appellant/Applicant; Ms. Madhavi Ayyappan a/w Mr. S.B. Talekar i/b Talekar & Associates for the Respondent Nos. 1 and 2
Mr. Abdulgapr Maktumsab Hudali
Mr. Sardar Mohammad Pathan and Mr. Bashir Mohammad Pathan
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Nature of Litigation
Appeal under Section 37 of the Arbitration and Conciliation Act, 1996 challenging the dismissal of an application under Section 34 of the Act, which had confirmed an arbitral award.
Remedy Sought
The appellant sought to set aside the judgment and order dated 20.04.2016 passed by the Principal District Judge, Kolhapur in Civil Miscellaneous Application No.296 of 2008, which dismissed the application under Section 34 and confirmed the Arbitral Award dated 04.08.2008.
Filing Reason
The appellant was aggrieved by the District Judge's order dismissing his application under Section 34 of the Arbitration and Conciliation Act, 1996, thereby confirming the arbitral award against him.
Previous Decisions
The Principal District Judge, Kolhapur dismissed the appellant's application under Section 34 of the Arbitration and Conciliation Act, 1996 vide judgment and order dated 20.04.2016 in Civil Miscellaneous Application No.296 of 2008, confirming the Arbitral Award dated 04.08.2008.
Issues
Whether the District Judge erred in dismissing the application under Section 34 of the Arbitration and Conciliation Act, 1996 and confirming the arbitral award.
Submissions/Arguments
The appellant argued that the arbitral award was liable to be set aside on grounds available under Section 34 of the Act.
The respondents supported the District Judge's order and the arbitral award.
Ratio Decidendi
The court found no merit in the appeal and upheld the District Judge's order, implying that the challenge to the arbitral award under Section 34 was not sustainable as the award was not patently illegal or against public policy.
Judgment Excerpts
Heard. Admit. Learned counsel for the Respondents waives service.
Considering the narrow controversy involved, taken up for final disposal with the consent of the learned counsel for the parties.
This Appeal is filed under section 37 of the Arbitration and Conciliation Act, 1996 challenging the Judgment and Order dated 20.04.2016 passed by the Principal District Judge, Kolhapur in Civil Miscellaneous Application No.296 of 2008, dismissing application filed under section 34 of the said Act, confirming the Arbitral Award dated 04.08.2008.
Procedural History
The respondents filed arbitration proceedings against the appellant. The Arbitral Award was passed on 04.08.2008. The appellant filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 before the Principal District Judge, Kolhapur, which was dismissed on 20.04.2016. The appellant then filed the present appeal under Section 37 of the Act before the High Court of Bombay at Kolhapur on an unspecified date. The appeal was admitted on 08.04.2026 and finally disposed of on 20.07.2026.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 37, Section 34
