Introduction:
The
This update briefly analyses the said judgement of the Supreme Court.
FACTS:
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Amazon.
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On
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Amazon objected to the said deal on the ground that the
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The Emergency Arbitrator passed an award on
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FRL in the meantime filed a Suit before the Hon'ble
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In the meantime, Amazon filed an Application against FRL under Section 17(2) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) before the single bench of
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Aggrieved by the said order of the Single Judge, FRL filed an appeal before the Division Bench of
ISSUE 1:
Whether an "award" delivered by an Emergency Arbitrator under the SIAC Rules can be said to be an order under section 17(1) of the Arbitration Act?
HELD
The
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In the interpretation of the Arbitration Act, party autonomy is considered paramount. Thus, when the parties had agreed to abide by the SIAC Rules, the question of then contesting the legality and correctness of those rules does not arise.
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Secondly, the SIAC Rules on Emergency Arbitration reflect similar provisions as provided in Section 9 and 17 of the Arbitration Act. It can thus be said that the award passed by an "Emergency Arbitrator" can be construed as an "Interim Order" passed by an arbitrator under Section 17(1) of the Arbitration Act.
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SIAC Rules and the Arbitration Act go hand in hand in achieving the common objective of decongestion of the arbitration proceedings in the civil courts for the grant of interim relief.
ISSUE 2:
Whether an Order passed by
HELD
The Court answered this question in the negative on the basis of following reasons:
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Section 37 of the Arbitration Act provides for appealable orders, wherein the orders of the arbitral tribunal "granting or refusing to grant an interim measure under section 17" have been included.
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However, the intention of the legislature becomes clear from the wording that only the orders under section 17(1) which are passed by the tribunal are covered by this section and not the orders passed by the court under Section 17(2), thereby enforcing the orders passed under Section 17(1).
MHCO COMMENT:
The
This update was released on
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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