Advocate Sushila
SUPREME COURT REITERATES CIRCUMSTANCES WHEN A COURT CAN DECIDE UPON INTERIM RELIEF UNDER ARBITRATION ACT
Advocate Sushila Ram 22 Sep 2021

SUPREME COURT REITERATES CIRCUMSTANCES WHEN A COURT CAN DECIDE UPON INTERIM RELIEF UNDER ARBITRATION ACT

The Bench of Hon’ble #SupremeCourt of India in the case of Arcelor Mittal Nippon Steel India Ltd. vs Essar Bulk Terminal Ltd. [Civil Appeal No. 5700/2021], vide its Judgment dated 14-09-2021 held that the Court can continue to decide an application under Section 9 of the Arbitration Act, 1996 (#ArbitrationAct) for #interimmeasures of protection, that has already been taken up for consideration by the court, prior to constitution of #arbitraltribunal.

The Appellant, Arcelor Mittal Nippon Steel India Ltd and the Respondent, Essar Bulk Terminal Ltd. entered into an agreement for Cargo Handling at Hazira Port (Cargo Handling Agreement). The said Cargo Handling Agreement was amended from time to time. Owing to certain disputes that arose under the said Cargo Handling Agreement, the Appellant invoked the arbitration clause and issued Notice of Arbitration upon the Respondent on 22-11-2020. The Respondent did not reply to the said Notice.

Thereafter, the Appellant filed an Application before the High Court of Gujarat (High Court) for appointment of an Arbitral Tribunal under Section 11 of the Arbitration Act. Later, the Respondent replied to the Notice of Arbitration on 30-12-2020 and contended that the disputes between the Parties were not arbitrable.

However, the High Court appointed a three-member Arbitral Tribunal, comprising of three retired Judges of the High Court, to adjudicate the disputes between the Appellant and the Respondent, under Section 11(6) of the Arbitration Act vide its Order dated 09-07-2021.

Thereafter, both the Appellant and the Respondent filed Applications before the Commercial Court and the 12th Additional District Judge, District and Sessions Court at Surat (Commercial Court) under Section 9 of the Arbitration Act seeking interim measures of protection from the Court during ongoing arbitration proceedings.

As the Arbitral Tribunal was constituted, the Appellant filed an Application seeking transfer of arbitration proceedings from Commercial Court to the Arbitral Tribunal constituted by the High Court. The Commercial Court dismissed the said Application filed by the Appellant, vide its Order dated 16-07-2021 on the ground that it had already concluded the proceedings before it and reserved the matter for Orders.

The Appellant filed a Civil Application No.10492 of 2021 in the High Court under Article 227 of the Constitution of India challenging the Order dated 16-07-2021 passed by the Commercial Court. The High Court, vide its Order dated 17-08-2021 held that the Commercial Court has the power to consider whether the remedy under Section 17 of the Arbitration Act is inefficacious and pass necessary orders under Section 9 of the said Arbitration Act.


To read more, please visit the link below:


https://theindianlawyer.in/supreme-court-reiterates-circumstances-when-a-court-can-decide-upon-interim-relief-under-arbitration-act/


#supremecourt #arbitration #interimrelief #lawyered

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