20 April 2021 | Savita Jain v. M/s Krishna Sales | Manmohan & Asha Menon JJ | 2021 SCC OnLine Del 2417

Asserting that the respondent had admitted the liability and its financial position was weak, the petitioner applied under Section 9 ACA to secure the admitted amount. The trial court dismissed the application.

In appeal, the High Court set the order aside and ruled that:

1. The discretion under Section 9 ACA should be exercised in exceptional cases when there is adequate material on record leading to a definite conclusion that the respondent is likely to render the entire arbitration proceedings infructuous or where there is an admitted liability. Such powers are exercised on the underlying principles of Order XXXVIII and Order XXXIX CPC, but it is settled that the court is not unduly bound by it.
2. The jurisdiction of an appellate court is limited, but the trial court’s order is perverse since it is a case of admitted liability, as shown in the balance sheets and statement of accounts.