07 March 2022, Monday

2 years ago

The question of applicability of CPC to arbitration cases is pending in the Supreme Court: Kerala High Court

11 February 2022 | Coxswain Projects & Estates (P) Ltd v. NJ Constructions | Arb A No 27 of 2020 | PB Suresh Kumar & CS Sudha JJ | Kerala High Court | 2022 SCC OnLine Ker 856

Is a cross objection maintainable in a proceeding under Section 37 ACA? The Kerala High Court begins its decision with this question but, in answer, notes that the issue is pending before the Supreme Court. So, it relied on the fact that the cross-objection was not timely filed even if it was maintainable.

The court also reversed the set-aside court’s findings and upheld the tribunal’s findings on liquidated damages against the respondent. However, the post-award interest rate was modified to 6% from 18% granted.

In a 2002 decision, ITI Ltd v. Siemens (2002) 5 SCC 510, a 2-judge bench of the Supreme Court had ruled that because the applicability of the Code of Civil Procedure, 1908 is not expressly excluded, it applied to cases arising under the ACA. Accordingly, they concluded that the remedy of revision under Section 115 CPC was available.

In 2016, another 2-judge bench --MTNL v. Applied Electronics (2017) 2 SCC 37--disagreed with ITI and referred the matter to a larger bench. It was of the view that the application of CPC in arbitration cases was not conceivable, and cross-objections were not maintainable. This 3-judge bench matter is pending (Civil Appeal No. 11584/2016).

Read the decision here.

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