Allahabad HC Reiterates Arbitration Award Execution Can Be Filed Anywhere In The Country
Title: Madhyanchal Vidyut Vitran Nigam Ltd. Thru. Managing Director v. M/S Shashi Cable Thru. Its Authorized Signatory
Decided on: 13th October, 2023
CORAM: Hon’ble Justice Pankaj Bhatia
Introduction
The High Court of Allahabad has ruled that the execution of an arbitral award may be petitioned for and granted wherever in the nation where the award debtor’s assets are situated.
Facts of the Case
An agreement was first made for the provision of conductor by the petitioner and respondent, and then another agreement was made in compliance with the aforementioned ruling. According to the provisions of the aforementioned agreement, the respondent’s supply to the petitioner will determine which payments are due. The response brought up the payment of the outstanding bill, which was the subject of the disagreement. The respondent submitted an application to the U.P. State Micro and Small Enterprises Facilitation Council, Kanpur, requesting payment of Rs. 15,27,30,879 plus interest. The claim was refuted by the petitioner. The Council then went on and made an award against the petitioner, directing that a total of Rs. 9,97,58,764/-be deposited in the respondent’s favour.
The petitioner filed an application under Section 19 of the MSMED Act to challenge the aforementioned award; however, the learned Judge of the Commercial Court, Kanpur, denied the case. The petitioner then submitted a recall request for the order, but it was ultimately denied. The aforementioned order was contested by the petitioner, who did not receive an interim order in support of their case when they filed a petition before this Court in Allahabad under Article 227 of the Indian Constitution. The petitioner’s objections to the respondent’s plea for execution of the award dated 27.01.2022 before the Commercial Court of Lucknow were dismissed in the interim. As a result, the petitioner has challenged it by submitting the current petition.
Courts analysis and decision
The petitioner’s attorney argues that the Lucknow court lacks territorial jurisdiction and that only the Kanpur court could have considered the execution application once the award was made there due to the bar established by Section 42 of the Arbitration and Conciliation Act.
The Court noted that neither a doubt nor a referral was made regarding the executing court’s jurisdiction, thus stated, “the Executing Court having jurisdiction to execute the award can be any court anywhere in the Country, where the decree can be executed and thus in view of the law expounded in the case of Cheran Properties Limited (Supra), I have no hesitation in holding that the objection of the petitioner that the Court at Lucknow had no jurisdiction loses its relevance and is worthy of rejection.”
Therefore, the Court observed that the petitioner’s counsel’s argument cannot be maintained on the grounds of jurisdiction because the ruling that is being contested, dated 10.03.2023 by the Commercial Court of Lucknow, contains no errors or infirmities and thus, was upheld.
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Written by- Aashi Narayan