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TMI Blog2001 (8) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... iation Act, 1996. It is further contended that considering the challenges raised in the main petition and as there is an Award in favour of the petitioners herein, this Court should grant reliefs as prayed for. Based on the material on record, it is sought to be contended that the financial position of respondent company is not very healthy. If the petitioners are not secured, there is every possibility that they will not be in a position to recover the amounts, if ultimately the petition filed by the respondents is dismissed. In support of the petition one Mr. P. Raghuraj Prasad has filed affidavits dated 19-6-2001 and 18-7-2001. ( 3. ) Respondent No. 1 has contested the contention of the petitioners. Affidavits in opposition to the case of the petitioners, have been filed by Mr. M. K. Swami on 18-6-2001, 11-7-2001 and 31-7-2001. In sum and substance respondent No. 1 contends that the petitioners have not made out a case for the reliefs as prayed for. Contention of the petitioner that the respondent company has been taken over by another company namely Larsen and Toubro Ltd. and that the cement manufactured in the plant of the respondent is packed in the bags of Larsen and Toub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovember 17, 2000 has followed the said judgment. On accepted legal principles a judgment of a Co-ordinate Bench of this Court, it is contended, should be followed. It is also pointed out that the arbitral proceedings come to an end on the happening of an event as contemplated by section 32 of the Act of 1996. In the instant case, once the Award is passed, the arbitral proceedings have come to an end. If arbitral proceedings have come to an end then section 9 will have to be read bearing that in mind. Section 9 and clauses thereto, would indicate that most of them cover situations in the course of the arbitral proceedings and would not be available after the proceedings have come to an end. ( 5. ) Let me first address myself to the issue as to whether the judgment in Indian Securities Ltd. can be said to have laid down the law as canvassed as in the normal course of judicial discipline, a Co-ordinate Bench of this Court should follow, unless it disagrees with the view, in which event, it must refer the issue for consideration by a larger Bench. The Court, however, must first consider as to what is the ratio of the judgment of the Co-ordinate Bench. It is the ratio of the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 (ii) (b) of Act of 1996. ( 7. ) We then come to the judgment of the learned Single Judge of Delhi High Court. The facts therein disclose that the decision was rendered before the Award was published. The learned Single Judge proceeded on that basis. The Court further observed comparing the provisions of the Act of 1940 with the Act of 1996 that in the Act of 1996 the provisions of Civil Procedure Code are not made applicable. Even then, the principles of Order 38, Rule 5 should be borne in mind. In the present petition I do not propose to enter into the issue as to whether the provisions of Civil Procedure Code are attracted or not except for some comments. ( 8. ) The Civil Procedure Code consists of procedural provisions as also substantive provisions. Court in section 2 (e) of the Act of 1996 is defined as the Principal Civil Court of original jurisdiction in a district having jurisdiction to decide the questions forming the subject matter. Under section 141 of the Civil Procedure Code the procedure provided in the Code with regard to the suits shall be followed as can be made applicable in all proceedings in a Court of civil jurisdiction. The provisions of the Act of 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or evidence; (d) interim injunction or the appointment of a receiver; (e) such other interim measure of protection as may appear to the Court to be just and convenient; What is however, more important is that in making these orders, the Court shall have the same powers as it has for the purpose of and in relation to, any proceedings before it. ( 10. ) Section 9 therefore, itself has permitted the Court to invoke all those procedural provisions as contained in the Code of Civil Procedure for the purpose of passing the orders and/or granting relief under section 9. It may also be mentioned that apart from the Court, under section 17, the Tribunal itself at the request of the party, may order a party to take any interim measure of protection as the Tribunal may consider necessary in respect of the subject-matter of the dispute and for that purpose, may require the party to provide appropriate security in connection with a measure ordered under sub-section (1 ). Under section 26, the Tribunal can appoint one or more experts to report to it on specific issues to be determined by the arbitral Tribunal and require a party to give the expert any relevant information or to produce or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terim stage is specifically provided for in section 9 (ii) (a ). Apart from that there is general power reserved in the courts for such interim measure as it may thought proper under section 9 (ii) (a ). The substantive provisions of granting interim relief as provided for in the Code of Civil Procedure therefore, cannot be read into section 9. There are independent provisions in the Act itself. The exercise of the power must be construed, bearing in mind the object of the Act and the need to dispose of the matter as expeditiously and not hedged in, by the provisions of the Code of Civil Procedure. To my mind, therefore, it is not necessary for the Court when called upon to secure the amount in dispute to find out whether the respondent before it is seeking to dispose of the property or taking the property outside the jurisdiction of the Court. The Court is not hedged by such restriction. If it were to be so, the legislature considering that the petition lies to the Civil Court could have provided that Court can exercise all the powers it has under the Civil Procedure Code for granting interim relief. On the contrary only procedural provisions to give effect to the power under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable, as the Award becomes a decree and can be executed as a decree. ( 12. ) It is no doubt true that section 9 (ii) uses the expression subjectmatter of the arbitration agreement, securing the amount in dispute in the arbitration , the detention, preservation or inspection of any property or things which is the subject-matter of the dispute in arbitration , interim injunction or the appointment of a receiver and such other interim measure of protection . That does not mean that these expressions have to be read to mean that they are available only when the arbitral proceedings are going on or before the commencement of the arbitral proceedings. The section itself starts with the expression a party may, before or during arbitral proceedings or at any time after the making of the arbitral Award but before it is enforced in accordance with section 36, apply to a Court . Thus section 9 (i) and 9 (ii) would be applicable even if the Award has been passed but before it becomes enforceable though the arbitral process terminates except in cases covered by section 32 (3 ). Parliament when it conferred power in the Court under section 9 to grant interim relief, recognized situa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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