Skip to main content

Court does not loose jurisdiction upon mere filing of an arbitration application

In MR. DEEPAK KHOSLA vs UNION OF INDIA, the Delhi High Court held that once an application is being filed under Section 8, the Court would first have to form a view as to whether the disputes which are pending between the parties are within the preview of the Arbitration Act and the matters which are subject matter of proceedings where the application under Section 8 is filed are covered by the arbitration agreement. The judicial authority has to hence first come to a conclusion that the requirements of Section 8 have been fulfilled before referring the parties to arbitration. Till pendency of the application under section 8 of the Arbitration Act for supplemental and incidental proceedings including passing of interlocutory orders, there is no jurisdictional bar to pass orders and directions. There is nothing to show that miscellaneous and incidental proceedings cannot go on before the court. Even a reading of section 5 and section 8 of the Arbitration Act does not show that on a mere filing of an application under section 8 of the arbitration act the court loses its jurisdiction to pass any further orders either in the main proceedings or in the supplementary or incidental proceedings in the said suit. No such interpretation can follow from a reading of section 5 and section 8 of the arbitration act.

Article referred: https://www.firstlaw.in/2018/05/mere-filing-of-arbitration-application.html

Comments

Post a Comment

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more

Winding-Up Petition Can’t Be Used If Bona Fide Payment Disputes Pending

The Karnataka High Court, in the case of M/s Uttam Industrial Engineering Ltd vs  M/s Shree Basaveshwar Sugars Ltd, has held that a winding-up petition has serious  ramifications on the financial standing of a company and cannot be used in cases  where there is a bona fide dispute regarding the amount owed by one party to the  other and in such cases the company court should relegate the matter either to the  civil court or arbitral tribunal. In this case, Uttam Industrial Ltd entered into a contract with Basaveshwar Sugars Ltd  to provide machinery and equipment for a sugar plant. Article referred:  http://www.livelaw.in/remedy-winding-petition-cant-relied-upon-bona-fide-payment-disputes-karnataka-hc/
Post a Comment
Read more

A liquidator must pay GST on sale of assets of a defunct company

The West Bengal Authority of Advance Ruling has ruled that a National Company Law Tribunal appointed liquidator must have the GST registration till all liabilities cease to exist and that the liquidator must pay goods and services tax (GST) on sale of assets of a defunct company under liquidation, as the sale is effectively supply of goods. 
Post a Comment
Read more