Skip to main content

No Interim Relief Under Section 9 Of Arbitration Act Against Terminable Contract

Cause Title : M/s Suryapushpa Distributors vs Rail Land Development Authority, Delhi High Court, O.M.P.(I) (COMM.) 213/2022 and I.A. No. 14394/2022

Date of Judgment/Order : 13.01.2023

Corum : Hon’ble Mr. Justice Chandra Dhari Singh

Citied: M/S Inter Ads Exhibition Pvt Ltd vs. Busworld International Cooperatieve Vennotschap Met Beperkte Anasprakelijkheid, 2020 SCC Online Del 2485

Background

An application under Section 9 of the Arbitration and Conciliation Act, 1996 was filed by the Petitioner in view of threats issued by respondent vide letter dated 1st July 2022 to terminate the Letter of Acceptance (“LoA”) dated 9th February 2022 executed by Petitioner and the Respondent. 

The Petitioner alleged that the instant matter was listed on 11th July 2022 where the counsel for the respondent sought time to file a reply to the petition but in utter malice instead of filing the said reply the respondent terminated the LoA vide communication dated 19th July 2022.

Consequently, through this Interim application, the Petitioner sought to amend the prayer and  pray for  Interim relief of status-quo ante qua the termination LOA dated 09.02.2022 and land admeasuring 35,127 sq. mtr., which is subject matter of LOA, be directed to be maintained till disposal of the Section 9 Petition.

The Respondent opposed the amendment and submitted that the instant relief sought by way of amendment is not maintainable under Section 9 of the Arbitration Act.

Judgment

The High Court observed that at this stage it is crucial to examine that the termination already made final by the respondent cannot be challenged by the petitioners by way of a Section 9 petition.

The High Court held that where the LoA was in fact terminated, no relief lies in favour of the petitioners/applicants for challenging the order of termination on merits. The court referred to the judgment in M/s Suryapushpa Distributors (supra) where it has been held that since the contract in the present case was terminable and as the issue of the legality of the action of termination has yet to be determined and further, since wrongful termination can be restituted by awarding of damages, in the event the appellant is able to establish that the said termination was illegal and invalid, the learned Single Judge has rightly declined the reliefs prayed for by the appellant in the Section 9 petition.

The High Court decided that this Court, exercising its powers under Section 9 of the Arbitration Act, cannot go into the merits of the termination order and adjudicate upon a challenge to the same.

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

Mere Agreement To Sell The Leased Property To Tenant Would Not Terminate Landlord-Tenant Relationship

In CIVIL APPEAL Nos. 1237­1238 OF 2019, Dr. H.K. Sharma vs Shri Ram Lal, the tenant had objected against the eviction suit filed by the landlord, claiming that the landlord-tenant relationship between them had ceased to exist by virtue of an agreement for sale entered between them and that he has already paid some money in advance based on the agreement. The tenant contented as the landlord-tenant relationship did not exist, the landlord cannot evict him. The matter went through various forums and finally landed before the Supreme Court in appeal. The Supreme Court referring to the judgment in Shah Mathuradas Maganlal & Co. vs. Nagappa Shankarappa Malage & Ors., held that in the instant case the lease agreement included no clauses on the fate of the tenancy. A fortiori, the parties did not intend to surrender the tenancy rights despite entering into an agreement of sale of the tenanted property. In other words, if the parties really intended to surrender their tenancy ...
2 comments
Read more

Valuation Report of Jewellery once made is effective for Four Assessment Years

The division Bench of the Delhi High Court in Pr.Commissioner of Wealth Tax vs. Raghu Hari Dalmia held that a valuation report made by a registered valuer once adopted shall be in effect for four assessment years unless an event has occurred whereby the value is increased or decreased. The High Court made it clear that the event of “search” under Section 132 of the Income Tax Act, 1961 cannot compel the assessee to undertake a fresh valuation.
2 comments
Read more