2021 (5) TMI 1034 - HC - Indian Laws

Maintainability of petition - Section 9 of the Arbitration and Conciliation Act, 1996 - HELD THAT - The order of learned Single Judge rejecting the plea of maintainability of the Arbitration Petition (L) No. 10089 of 2020 in the impugned order is stayed. Parties would be at liberty to apply for early Trupti 2/3 2-appl-11080-2021.doc hearing of this Appeal after the issue raised before the Hon'ble Supreme Court arising out of the order passed by the NCLAT is decided. Hearing is expedited - Interim application disposed off.

Summary

Issues involved:
1. Appeal against findings rejecting plea of maintainability of petition under Section 9 of the Arbitration and Conciliation Act, 1996.
2. Pending Special Leave Petition against NCLAT order.
3. Stay against NCLAT order by Supreme Court.
4. Stay granted on order rejecting maintainability of Arbitration Petition.
5. Liberty to apply for early hearing after Supreme Court decision.
6. Liberty to file counter claim and apply for modification or clarification.
7. Expedited hearing.
8. Disposal of Interim Application.

Analysis:
1. The appeal was filed against the findings rejecting the plea of maintainability of the petition under Section 9 of the Arbitration and Conciliation Act, 1996. The appeal was specifically directed against the learned Single Judge's decision concerning the appellant, who was the original respondent No.1. The plea of maintainability was raised by the appellant in a petition filed under Section 9 of the Arbitration Act, in light of the orders passed by the National Company Law Appellate Tribunal (NCLAT) on 15th October, 2018, and 12th March, 2020.

2. It was noted that a Special Leave Petition challenging the NCLAT's order was pending before the Hon'ble Supreme Court, and as of the present date, there was no stay granted by the Supreme Court against the NCLAT's order. The court admitted the matter for further consideration.

3. The learned Senior Counsel for respondent No.1 waived service, as did the counsels for respondent Nos. 2 and 5. The court stayed the order of the learned Single Judge rejecting the plea of maintainability of the Arbitration Petition, allowing parties to seek an early hearing after the Supreme Court's decision on the matter arising from the NCLAT's order.

4. The court clarified that if respondent No.1 intended to file a counter claim before the Arbitral Tribunal in response to the appellant's arbitral proceedings, and if any jurisdictional issues were raised by the appellant regarding such counter claim, respondent No.1 could apply for modification or clarification of the court's order.

5. The court expedited the hearing of the matter and disposed of the Interim Application (L) No. 11083 of 2021 in view of the orders passed.