2017 (9) TMI 1267 - SC - Indian Laws

Arbitration proceedings - eligibility of award - Held that - There is a difference of opinion in relation to entertainability of an application by this Court for making the award as Rule of the Court. The matter is, therefore, referred to larger bench for decision of the following question Whether this Court can entertain an application for making the award as Rule of the Court, even if it retains seisin over arbitral proceedings?

Summary

Issues Involved:
1. Jurisdiction of the Court to entertain an application for making the award as Rule of the Court when it retains seisin over arbitral proceedings.

Analysis:
1. The case involved a situation where an Arbitrator was directed to file the award in the Court, and the respondents argued that the application to make the award a rule of the Court must be filed in the same Court. They relied on precedents like Mcdermott International INC. vs. Burn Standard Co. Ltd. and State of Rajasthan vs. Nav Bharat Construction Company to support their stance.

2. On the other hand, the appellants contended that the right to appeal is crucial and should not be deprived without valid reasons. They argued that the Court had not retained control over the Arbitrator's proceedings, citing cases like Bharat Coking Coal Limited vs. Annapurna Construction and State of West Bengal vs. Associated Contractors to support their position.

3. The Court referred to the judgments in Nav Bharat Construction Company and Bharat Coking Coal Limited to highlight the conflicting views on the matter. The Court acknowledged the differing opinions and decided to refer the question of whether the Court can entertain an application for making the award a Rule of the Court, even if it retains seisin over arbitral proceedings, to a larger bench for resolution.

4. Consequently, the Court directed the Registry to place the matter before the Hon'ble Chief Justice of India for appropriate orders, indicating the need for a comprehensive decision on the jurisdictional issue at hand.

This detailed analysis of the judgment provides a thorough understanding of the legal complexities involved in determining the Court's jurisdiction in entertaining an application related to arbitral proceedings.