SECTION 17(2) OF THE ARBITRATION AND CONCILIATION ACT 1996 ONLY ENABLES AN ARBITRATOR TO PASS AN INTERIM ORDER. THERE IS NO POWER VESTED WITH THE ARBITRATOR TO ACT AS A CIVIL COURT AND ENFORCE THE ORDER.: KERALA HIGH COURT
The High Court of Kerala passed a judgement on 17TH DAY OF JANUARY 2023 which stated that section 17(2) of the arbitration and conciliation act 1996 only enables an arbitrator to pass an interim order. there is no power vested with the arbitrator to act as a civil court and enforce the order .It was stated in the case of M/S. Kotak Mahindra Prime Ltd vs Ashraf V. ( WA NO. 926 OF 2016) which was passed by the division bench comprising of CHIEF JUSTICE MR.S.MANIKUMAR &. JUSTICE SHAJI P.CHALY
FACTS OF THE CASE:
The party respondents in the appeals have availed loans from the appellant by executing hypothecation agreements for the purchase of vehicles which were to be repaid in equated monthly installments. Repayment was defaulted, consequent to which, on the basis of the agreement executed by and between the appellant and the party respondents, Arbitrator was appointed. Along with the claim petition appellant filed an application seeking an interim measure of repossession of the vehicles by appointing an advocate commissioner. The application for interim order was allowed and the advocate commissioner was directed to repossess the vehicle with police assistance. The learned Single Judge after assimilating the entire factual and legal situation in contemplation of the provisions of the Act 1996 has arrived at the conclusion that the order so passed by the Arbitrator cannot be sustained under law. Aggrieved by this ,an appeal was filed by the company.
JUDGEMENT OF THE CASE
The court held that the learned Single Judge was right in allowing the writ petition and interfering with the enforcement of the order passed by the Arbitrator. The appellant has not made out any case of jurisdictional error or other legal infirmities justifying our interference in an intra court appeal filed under Section 5 of the High Court Act, 1958.. Therefore, it is for the appellant to enforce the same in terms of the provisions of the Act 1996
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JUDGEMENT REVIEWED BY ROSHNI SABU, KERALA LAW ACADEMY LAW COLLEGE.